Starbucks has used technology to help compete in new ways. The company engaged in a mobile digital platform recognizing that over a third of customers owned smartphones. The Starbucks App allows regular customers to pay with preloaded cards using a barcode on their phone, making the customer experience more efficient. Starbucks also used its supply chain and product differentiation, enabled by information systems, to alter its existing menu and offer new products and price specials to match competitors. Technology assisted Starbucks' business strategy through the addition of the mobile digital platform and Starbucks Digital Network, giving customers free Wi-Fi and app access on smartphones. Without technology, Starbucks would not have been able to launch these digital initiatives or use smartphone apps for payment, and newer in-store technologies

1. Case Study-3
Technology Helps Starbucks
Find New Ways to
Compete

2. INTRODUCTION
 Company History
 Founded in 1907 as a messenger company in the United
States, UPS has grown into a multi-billion-dollar corporation
by clearly focusing on the goal of enabling commerce around
the globe. Today, UPS is a global company with one of the
most recognized and admired brands in the world. We have
become the world's largest package delivery company and a
leading global provider of specialized transportation and
logistics services. Every day, we manage the flow of goods,
funds, and information in more than 200 countries and
territories worldwide.

3.  Relationships With Benefits.
 There are a lot of benefits for small business when have a
relationship with local The UPS Store. Not only do provide excellent
customer service, but also provide the necessary tools to help small
business thrive. The Company offer in-store and online printing,
notary, document finishing, mailbox services, packing and shipping,
all tailored to fit small business. That’s why this company is
community small business resource canter.
 Small businesses helping small business – that’s The UPS Store
network. Customers and business clients rely on The UPS Store for
superior business service solutions and impeccable customer
support. The Company looking for qualified franchise owners who
are dedicated to serving customers and making their lives a little bit
easier.

4. Q1- Analyze Starbucks using the competitive force
and value chain models ?
 Customers
 The user of information system achieves a low cost
leadership; there are low operation costs and therefore
a company can afford to charge lower price. Starbucks
engaged in the mobile digital platform, when realizing
over a third of their customers were smart phone
owners. The Starbucks App allows regular customers
to pay with prepay or top up their card and use this at
every branch to pay for their drinks by scanning bar
code displayed on their phone. This is showing the use
of management information system making the
customer experience more efficient and of a better
quality at a retail level of the supply chain.

5.  Substitute Product and Services
 Starbucks also used product differentiation and information system
to alter their existing menu. They have now enabled new product
for customer convenience and offered price reduced specials, to be
able to change lower price Starbucks had made alteration in their
supply chain. They had to match what their fellow competitors were
offering, although thanks to low cost leadership Starbucks were
able to operate more efficiently and save on operational costs due
to faster and better customer service.
 New Market Entrants
 To focus on the market niche Starbucks had to attempt on
narrowing the target market better than their competitors. An
information system assists this strategy as it can produce data to
analyze future sales and marketing techniques. Using the fact that
the mobile digital platform meant many consumers use smart
phones, Starbucks engaged into the ‘Starbucks Digital Network’
which is a portal designed specifically for mobile devices and
optimized for smart phone operating systems.


6.  Suppliers
 Strengthening customer and supplier intimacy is
essential for large companies whose consumers may
feel insignificant. The case study displays customers
felt as though they were visiting a fast food chain due
to the their experience being very brief. Management
information system and streamlined business
processes have allowed time saving to transfer into
providing a better customer service, customers now
feel more connected with a friendlier service , the
chain have also started adding names to their
customer drinks to offer a more personalized service
and better customer experience.


7. Q2- What is Starbucks’ business strategy ? Assess the role
played by technology in this business strategy ?
 Starbucks business strategy was to continue serving high end
specialty coffee production. Technology assisted the business
strategy due to the addition of mobile digital platform and the
‘Starbucks Digital Network’, giving customers the benefit of free
Wi-Fi access and Starbucks Apps to access on their smart
phone.

8. Q3-How much has technology helped Starbucks compete? Explain your
answer
 Without the use of technology, Starbucks would have
been unable to launch the Starbucks Digital Network
and the use of paying via Starbucks apps on smart
phones. Besides that, the newer in store technology
helped baristas reduce the time of making drinks,
improve customer service and speed of service,
allow Starbucks to generate higher level of revenue.