This is a Case Study of Starbucks and how it has overcome its problem as stated in the course text to become the leading seller of fine gourmet coffees
Outline for the presentationCompany BackgroundProblem Statement and ResolutionMobile RevolutionIT TrendsStarbucks in 2020
Founded in 1971Starbucks is named after the first mate in Herman Melville’s Moby Dick. Our logo is also inspired by the sea – featuring a twin‐ tailed siren from Greek mythology (Starbucks (n.d.)).Starbucks Mission“Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time (Starbucks (n.d.))”.“We offer the finest coffees in the world, grown, prepared and served by the finest people. Our employees, who we call partners, are at the heart of the Starbucks Experience. (Starbucks (n.d.)).”
StatisticsFrom the Starbucks Company Profilehttp://assets.starbucks.com/assets/aboutuscompanyprofileq12011final13111.pdf
Public Wi-Fi had become increasingly popular over the last 8 years“Wi-Fi is just like the free toaster the banks used to hand out for opening a new account (O’Brien and Marakas, 2009)-How to increase customer loyalty and compete with other businesses that were already offering free Wi-Fi without having people camp out there all day and not buy anything?-Wi-Fi will now be supplied for free in order to encourage customers to buy other goods and services
Feb. 2008 – Indie coffeehouses offer free Wi-Fi to its customersSeattle’s Bauhas Books & CoffeeSeattle’s CaffeLadroDunn Brothers in MinneapolisPeet’s Coffee & Tea Inc in CaliforniaPanera BreadMcDonalds Feb. 2008 - Starbucks announced its transitioning to AT&T as its Wi-Fi service provider in 7,000 coffee shops.1 New Wi-Fi service to provide “two hours free service and then paid services for Starbucks card holders.” After two free hours customers can purchase two more hours for $3.99 or purchase monthly subscription for $ 19.99. 12 Million AT&T U-verse Internet and broadband have unlimited access. Free access in all its partner’s hot spots, including STARBUCKS! Starbucks customers yell “foul” and Starbucks offers free, unlimited Wi-Fi. (next slide)
Question now arises, “How can these coffee houses afford free WiFi?” . Some are turning to Web advertising to pay Wi-Fi expenses. Customers become annoyed by ads while others don’t mind as along as they get their free Wi-Fi. (Lai, 2008) Starbucks partners with Yahoo! To offer The Starbucks Digital Network (next slide)
Starbucks partners with Yahoo! And offers free access to Starbucks Digital Network which provides access toThe Wall Street JournalThe New York TimesUSA TodayApple iTunes downloadsZagat restaurant reviewsWellness channelFull length select movies/documentariesPurpose –Upsell customers into subscriptions from it’s partnersStarbucks gets percentage (probably to help pay for free Wi-Fi services)Reference – Elgan, M. (August 2010). Elgan: Why Starbucks will win the Wi-Fi wars. Computerworld. Retrieved from http://www.computerworld/s/article/print/9180700/Elgan_Why_Starbucks_will_win_the_Wi-Fi_wars.html
eBooks, eNewspapers, and ESPN updatesMovies over the interneteVersions of popular health and fitness magazinesJob Hunting advice via career path as well as videos on finding a job and posting resumesGPS to local businesses as well as Starbucks locationsNews & SportsThe EconomistESPN inSiderEntertainmentWiki HowHoward Schultz’s “Onward” – free sample of audiobook downloaded from iTunesFilms from SnagFilmsMarvel Digital Comics – Coming SoonWellnessWomen’s HealthPreventionTraining PeaksEat This, Not ThatRunner’s WorldRodale.comBusiness & CareersCareer PathStarbucks CareersLinkedinMy NeighborhoodFoursquarePatchDonorsChoose.org (Starbucks, n.d.)
We also see the addition of Mobile ApplicationsmyStarbucksiPhone AppUse the Starbucks App to allow customers to order their drink via smart phoneStarbucks App for iphone/ipad/iPod TouchApp is currently free so no additional cost to the consumerApp is already available in over 6,800 Starbucks locations and over 1,000 Target locationsStarbucks Card Mobile App for iPhoneEnter your Starbucks Card number and your iPhone becomes your Starbucks CardYou can register your card, check your balance and track the Stars you earn toward free beverages through My Starbucks Rewards. You can pay for your drink using the Starbucks Card Mobile app! Enter your card number and your device will display a barcode you can use as your Starbucks Card to make purchases.
Some suggestions for future applications:Currently no official Android AppMy Coffee Card (formally known as Starbucks Card Widget) for Android allows you to quickly and easily manage and track your Starbucks Cards, and enables mobile payments from your Android phoneExpand Starbucks locations to Military Bases in the U.S. and abroadUse Skype and Vonage at Starbucks locationsExpand world markets to include Military Forward Operating Bases (FOB) which are the home base for deployed Soldiers. When a unit gets deployed, their orders always say what FOB they are assigned to. Encourage spouses and family members of deployed service members to take part in Starbucks promotions
Click “CEO Interview” to hear Howard Schultz’s vision of Starbucks in another 10 years.
Transcript of "Cyber innovators.v8a(compressed)"
The Brewing of Public Wi-Fi<br />CASE STUDY: Starbucks and Others: The Future of Public Wi-Fi<br />Presented by Cyber Innovators : Kristopher Hefner, Lalisha Hurt, & Leon Jude<br />
Company Background<br />STARBUCK’S CURRENT INFORMATION<br />
Starbucks Today<br />Millions of Customers & 137,000 Employees <br />Over 30 Blends of Coffee Products <br />$10,707.4M in Sales<br />17,009 Stores in over 50 Countries<br />Corporate Strategy<br />Offer high-quality products and provide a relaxing, attractive social atmosphere while achieving profitability<br />
Case Study - Starbucks and Others: The Future of Public Wi-Fi<br />Customers want to connect their laptops to the internet<br />Starbucks offers 2-hours free Wi-Fi to its customers while other indie coffee houses offer unlimited, free Wi-Fi<br />Meanwhile, others predict broadband as future IT trend<br /> (O’Brien & Marakas, 2009)<br />
Starbucks Responds to Customer Demands<br />July 2010 – Starbucks offers free, unlimited Wi-Fi to all it’s customers at all U.S. Locations<br /> Adam Brotman is named VP and leads Starbucks Digital Network (SDN) mobile revolution in hopes to draw customers<br />(Elgan, 2010)<br />
Mobile Revolution<br />"Our customers are the inspiration for the Starbucks Digital Network. They’ve told us they want to be the first to know what’s happening in their neighborhoods and around the globe, to have an easy way to discover new music, great books and important films and find ways to be more involved in their communities. And they’re connecting with the brand digitally in numerous ways,” said Stephen Gillett, Starbucks executive vice president, chief information officer and Digital Ventures general manager. “These points combined with our passion for creating a unique customer experience, our heritage of recommending culturally-relevant works and focus on giving back to the community, led us to create this new, one-of-a-kind, localized content experience with Yahoo!.”<br />(Starbucks, n.d.)<br />Click SDN to watch video <br />
Mobile Revolution<br />Oct. 2010 - Starbucks recognizes that “people hangout in coffee shops to socialize and read.” (Elgan, 2010)<br />
IT Trends<br />Popularity of Smart Phones and iPad have led to expansion of the SDN <br />
Mobile Applications<br />myStarbucksiPhone App<br />Starbucks Card Mobile App for Blackberry<br />Starbucks Card Mobile App for iPhone<br />
Suggestions<br />Starbucks Android App<br />Starbucks support of US Troops<br />
Imagine Starbucks in 2020<br />CEO Interview<br />
References<br />Elgan, M. (August 2010). Elgan: Why Starbucks will win the Wi-Fi wars. Computerworld. Retrieved from <br />http://www.computerworld.com/s/article/9180700/Elgan_Why_Starbucks_will_win_the_Wi_Fi_wars<br />Hamblen, M. (February 2008). Update: Starbucks moves to AT&T hot spots and away from T-mobile. Computerworld. <br /> Retrieved from <br />http://www.computerworld.com/s/article/9062059/Update_Starbucks_moves_to_AT_T_hot_spots_and_away_from_T_mobile<br />Lai, E. (February 2008). Indie coffeehouses tell Starbucks: Bring on your free Wi-Fi. Computerworld. Retrieved from<br />http://www.computerworld.com/s/article/9062638/Indie_coffeehouses_tell_Starbucks_Bring_on_your_free_Wi_Fi<br />O’Brien, J. A. & Marakas, G. M. (2009). Chapter 6: Telecommunications and networks. In Management Information Systems, pp 211-212. <br /> New York, NY: McGraw-Hill/Irwin.<br />Starbucks. (n.d.). Designed to Connect, Inform and Entertain, the Starbucks Digital Network, in partnership with Yahoo!, Debuts at Starbucks. <br /> Retrieved from http://news.starbucks.com/article_display.cfm?article_id=450<br />Starbucks. (n.d.). Starbucks company profile. Retrieved from http://assets.starbucks.com/assets/aboutuscompanyprofileq12011final13111.pdf<br />
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.