1 1.)During
the economic downturn beginning in 2008 profits plunged. The traditional
competitors exists and cause many coffee drinkers went in search of cheaper
alternatives form MC Donald’s and Dunkin Donuts for their coffee fixes.
The
use of information system achieves a low cost leadership, there are low
operational costs and therefore a company can afford to charger lower prices.
(Starbucks engaged in the mobile digital platform when realizing over a third
if their customers were smart phone owners. The Starbucks App allows regular
customers to prepay or top up their card and use this at every branch to pay
for their drinks) by scanning barcode displayed on their phone. ( The apps
allow customers in a hurry to pay quickly), showing the use of management
information systems at a retail level of the supply chain making the customer
experience more efficient and of a
better quality. Stream lining business processes meant a shorter customer wait due
to the time making the drink being reduced, which essentially meant each
barista could make more drinks by the hour, therefore increasing revenue.
Starbucks also used product differentiation information system to alter their
exists menu. For example, they have enabled new product for customers
convenience and offered price reduced specials, to be able to charge lower
prices Starbucks had made alternation in their supply chains. The third
competitive force being to focus on the market niche meant Starbucks had to
attempt on narrowing the target market better than their competitors. An
information system assists the strategy as it can produce data to analyse
future
Sales
and management technique using the fact that the mobile digital platform meant
many consumers use smart phones.
2.Starbucks business strategy was to
continue serving high end speciality coffee and improve the customer service so
that consumers did not feel like they were visiting a local fast food chain.
Additionally, to also improve technology assisted the business strategy due to
addition of the mobile digital platform and the Starbucks Digital Network
giving customers the benefit of free Wi-Fi access and Starbucks App to access
on their smart phone.
3.Without the use of
technology within the innovation of Starbucks, the company would have been
unable to launch the Starbucks digital network, and the use of paying via the
Starbucks apps on smart phone. To add, the newer install technique helped, the
baristas to make drinks faster, improving customer service and speed of
service, and allowing the company to generate a higher level of revenue.
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