SlideShare a Scribd company logo
Analysis & Outlook 
Blue Ocean Strategy – Starbucks Mobile Payments Application, Loyalty Rewards Program 
& Pre-orders 
Starbucks redefined highly competitive coffee shop business and successfully created an 
uncontested market by turning the simple coffee drinking experience into a way of life 
experience by drastically redefining the coffee shop environment by adding music, Wi-Fi, 
relaxed seating and luxurious interiors. Till Starbucks disrupted the traditional coffee shop 
market most of the focus was on the price, location and quality of coffee shops. Starbucks 
innovative value proposition includes wide variety of mostly coffee based menu along with other 
types of drinks that catered to wide range of audience who are willing to pay top buck for the 
luxurious and relaxed interiors that are perfect environment for socializing with friends and 
relax. Another important aspect that Starbucks focused was on the quality of customer service 
with an exclusive aim of maximum customer delight and they meticulously recruited and trained 
the best talent in the industry that has added huge value to their brand reputation. 
Starbucks successfully created an aspirational brand that created highly loyal and delighted 
customers who repeatedly come to Starbucks for the unique experience it is offering. W. Chan 
Kim, co-author of the book Blue Ocean Strategy, in an interview with SHRM.org said Starbucks 
combined the Mom & Pop Coffee shop with the comfort of a modern five star hotel lobby which 
is the most suitable environment for relaxing and socializing with friends. While it is true that 
Starbucks sells coffee, “what they are really selling is atmosphere,” he said. By changing the 
atmosphere in which coffee is sold, Starbucks created an uncontested market and made the 
competition irrelevant, he said. Starbucks “created and captured new demand,” he said. 
For years Starbucks has been successfully maintaining its dominant position in the coffee shop 
market despite the market becoming the red ocean which is highly competitive with many 
players offering similar product and service offering of Starbucks. In order to hold onto its 
competitive advantage and create new value proposition for its customers Starbucks has started 
to focus on the use of information technology, mobility and particularly social media. One such 
innovative value proposition by Starbucks is the Mobile Payments Application. Starbucks 
launched its mobile card app in 16 stores in early 2009 and after customer’s adoption increased, 
Starbucks expanded it countrywide in United States and the mobile app allowed customers to 
pay by displaying a barcode that will be scanned in the store. 
Starbucks mobile payments system is hugely successful based on the fact that 6 million average 
weekly transactions worth US$ 1.5 billion in the U.S that accounts for a full 15% of transactions 
made at the U.S. Starbucks-operated stores despite the fact many digital wallet service providers 
are struggling, according to BI Intelligence. The innovative mobile app has digital tipping 
options, dashboard showing the current reward or loyalty points level, points available with 
current transaction, pick of the week coffee, recent transactions and messages. The App can also 
integrate with social media sites like Facebook, Twitter, etc. where customers can proudly show 
case their reward level milestones with their friends and family. This will further add up to their 
brand reputation and brand loyalty. By simply shaking the phone customers can choose the 
Rajesh Prabhakar Analyst Bio @ http://analysiscasestudy.blogspot.com/
Analysis & Outlook 
barcode of the coffee drink they want to buy and pay accordingly. The app itself is modelled on 
the social media site interface where customers can see their regular purchases of Starbucks 
coffee and rewards points in a feed-style history and timeline. 
Starbucks’ disruptive mobile strategy integrated both its highly successful loyalty program called 
My Starbucks Rewards with payments by customers. Starbucks further incentivizes the 
customers who habitually buy and pay through mobile app and more reward points are awarded 
that are redeemed for free drinks and food. The app's success is not due to the ease of payment 
with a phone compared to cash or debit or credit card but the fact the customer can see the 
incentives and rewards he is going to get that will further increase his loyalty with Starbucks. In 
a way Starbucks is locking the customer for near future. Starbucks loyalty program was 
diligently crafted over the years and it has been the best in the coffee shop industry or any other 
industry. 
With more than 12 million active users in United States and Canada, Starbucks have added one 
more new feature where customers can preorder their coffee using the mobile app and pick up 
the coffee later. A prime example of this is our forthcoming mobile order and pay initiative that 
will allow customers to use their phones and MSR (My Starbucks Rewards) accounts to order 
ahead of arriving at a store where we plan to pilot in a major U.S. market later this year," said 
Howard Schultz, Starbucks CEO. Customers wanted this functionality of preorder through 
mobile for the past few years, particularly since the mobile based cab hailing service Uber huge 
success. Starbucks is able to offer this service right now as the company feels its technology and 
in-store operations are well equipped to handle such requests. Starbucks is also expanding the 
number of drive through express service outlets that are best suited for preorder system. 
Starbucks is also talking to partners and other businesses like retail outlets that will also allow 
the customers to use their mobile application payment system, rewards system and loyalty 
programs in non-Starbucks outlets. 
Through its mobile payment system Starbucks eliminated the need to carry cash, coin change 
issues, tipping problems, reduced the time spent on ordering and making coffee, understanding 
the menu and coffee types, offers and rewards available, raised the customer delight, loyalty and 
rewards, number of visits, new customers and created a new revenue source for the company, 
helped in acquiring new customers and also created a uncontested space in the digital wallet 
market. The Eliminate Raise Reduce and Create gird and value proposition proves the fact that 
Starbucks is successfully defending its blue ocean market and using strategy to maintain its 
competitive advantage and dominant position in the industry. Starbucks is one Blue Ocean 
Strategy Book example company that is still maintaining the market dominant position through 
innovation and disruptive technologies. 
Rajesh Prabhakar Analyst Bio @ http://analysiscasestudy.blogspot.com/

More Related Content

What's hot

Starbucks DIGITAL MARKETING
Starbucks DIGITAL MARKETING Starbucks DIGITAL MARKETING
Starbucks DIGITAL MARKETING
Zainab160
 
Starbucks marketing strategy
Starbucks marketing strategyStarbucks marketing strategy
Starbucks marketing strategy
Saravanan Murugan
 
Starbucks
StarbucksStarbucks
Starbucks
Qamaru Dheen
 
Starbucks
StarbucksStarbucks
Starbucks it's bigger than coffee
Starbucks it's bigger than coffeeStarbucks it's bigger than coffee
Starbucks it's bigger than coffee
Puneet Arora
 
starbucks in india
starbucks in india starbucks in india
starbucks in india
siddhant gaikwad
 
Digital marketing plan for starbucks
Digital marketing plan for starbucksDigital marketing plan for starbucks
Digital marketing plan for starbucks
msuwu
 
Starbucks case study
Starbucks case studyStarbucks case study
Starbucks case study
Prerna Agarwal
 
The Starbucks Coffee Company Sustainability Improvement Initiative
The Starbucks Coffee Company Sustainability Improvement InitiativeThe Starbucks Coffee Company Sustainability Improvement Initiative
The Starbucks Coffee Company Sustainability Improvement Initiative
Nicole Reaves
 
Starbucks Marketing Strategy - ESL
Starbucks Marketing Strategy - ESLStarbucks Marketing Strategy - ESL
Starbucks Marketing Strategy - ESL
Patrícia Azevedo
 
Case study Starbucks
Case study StarbucksCase study Starbucks
Case study Starbucks
AJAL A J
 
Starbucks
StarbucksStarbucks
Starbucks
Suraj Rouniyar
 
Starbucks Digital Strategy Plan
Starbucks Digital Strategy PlanStarbucks Digital Strategy Plan
Starbucks Digital Strategy Plan
westmorelandtaylor
 
Trouble brews at starbucks
Trouble brews at starbucksTrouble brews at starbucks
Trouble brews at starbucks
Joost Verbakel
 
Starbucks
StarbucksStarbucks
Starbucks
Tamim Tanvir
 
Starbucks marketing strategy
Starbucks marketing strategyStarbucks marketing strategy
Starbucks marketing strategy
Berk Barlak
 
Starbucks porter's case study
Starbucks   porter's case studyStarbucks   porter's case study
Starbucks porter's case study
Muhammad Ilham
 
Starbucks
StarbucksStarbucks
Starbucks
Saad Khan
 
Starbucks Brand Audit
Starbucks Brand AuditStarbucks Brand Audit
Starbucks Brand Audit
Laura Terry
 
Starbucks Presentation
Starbucks PresentationStarbucks Presentation
Starbucks Presentation
Andi Boediman
 

What's hot (20)

Starbucks DIGITAL MARKETING
Starbucks DIGITAL MARKETING Starbucks DIGITAL MARKETING
Starbucks DIGITAL MARKETING
 
Starbucks marketing strategy
Starbucks marketing strategyStarbucks marketing strategy
Starbucks marketing strategy
 
Starbucks
StarbucksStarbucks
Starbucks
 
Starbucks
StarbucksStarbucks
Starbucks
 
Starbucks it's bigger than coffee
Starbucks it's bigger than coffeeStarbucks it's bigger than coffee
Starbucks it's bigger than coffee
 
starbucks in india
starbucks in india starbucks in india
starbucks in india
 
Digital marketing plan for starbucks
Digital marketing plan for starbucksDigital marketing plan for starbucks
Digital marketing plan for starbucks
 
Starbucks case study
Starbucks case studyStarbucks case study
Starbucks case study
 
The Starbucks Coffee Company Sustainability Improvement Initiative
The Starbucks Coffee Company Sustainability Improvement InitiativeThe Starbucks Coffee Company Sustainability Improvement Initiative
The Starbucks Coffee Company Sustainability Improvement Initiative
 
Starbucks Marketing Strategy - ESL
Starbucks Marketing Strategy - ESLStarbucks Marketing Strategy - ESL
Starbucks Marketing Strategy - ESL
 
Case study Starbucks
Case study StarbucksCase study Starbucks
Case study Starbucks
 
Starbucks
StarbucksStarbucks
Starbucks
 
Starbucks Digital Strategy Plan
Starbucks Digital Strategy PlanStarbucks Digital Strategy Plan
Starbucks Digital Strategy Plan
 
Trouble brews at starbucks
Trouble brews at starbucksTrouble brews at starbucks
Trouble brews at starbucks
 
Starbucks
StarbucksStarbucks
Starbucks
 
Starbucks marketing strategy
Starbucks marketing strategyStarbucks marketing strategy
Starbucks marketing strategy
 
Starbucks porter's case study
Starbucks   porter's case studyStarbucks   porter's case study
Starbucks porter's case study
 
Starbucks
StarbucksStarbucks
Starbucks
 
Starbucks Brand Audit
Starbucks Brand AuditStarbucks Brand Audit
Starbucks Brand Audit
 
Starbucks Presentation
Starbucks PresentationStarbucks Presentation
Starbucks Presentation
 

Similar to Blue Ocean Strategy – Starbucks Mobile Payments Application, Loyalty Rewards Program & Pre-orders

Starbucks taking the “starbucks experience” digital - capgemini consulting ...
Starbucks   taking the “starbucks experience” digital - capgemini consulting ...Starbucks   taking the “starbucks experience” digital - capgemini consulting ...
Starbucks taking the “starbucks experience” digital - capgemini consulting ...
Rick Bouter
 
Starbucks Cofee Company: Transformational and Renewal
Starbucks Cofee Company: Transformational and RenewalStarbucks Cofee Company: Transformational and Renewal
Starbucks Cofee Company: Transformational and Renewal
Lúcia Dénis
 
How Starbucks took their experience digital
How Starbucks took their experience digitalHow Starbucks took their experience digital
How Starbucks took their experience digital
Ben Gilchriest
 
BAZUBAIDI - OCT07.docx
BAZUBAIDI - OCT07.docxBAZUBAIDI - OCT07.docx
BAZUBAIDI - OCT07.docx
Bahaa Al Zubaidi
 
Case study 3
Case study 3Case study 3
Case study 3
khaled alsaeh
 
Starbucks corporation- 2011 case study
Starbucks corporation- 2011 case study Starbucks corporation- 2011 case study
Starbucks corporation- 2011 case study
Amna Abrar
 
Mobile payment systems final trends paper
Mobile payment systems final trends paperMobile payment systems final trends paper
Mobile payment systems final trends paper
JuliaHurtley
 
After starbucks now messaging app line launches its prepaid debit card
After starbucks now messaging app line launches its prepaid debit cardAfter starbucks now messaging app line launches its prepaid debit card
After starbucks now messaging app line launches its prepaid debit card
PayNXT360
 
7 keys to open doors at Starbucks
7 keys to open doors at Starbucks7 keys to open doors at Starbucks
7 keys to open doors at Starbucks
databahn
 
Customer Relationship pillars by Starbucks
Customer Relationship pillars by StarbucksCustomer Relationship pillars by Starbucks
Customer Relationship pillars by Starbucks
Sukhdeep Kaur Sran
 
cafe_app
cafe_appcafe_app
Marketing group assignment (turnitin)
Marketing group assignment (turnitin)Marketing group assignment (turnitin)
Marketing group assignment (turnitin)
TAIWEIQI
 
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluewshreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
itsdoublea15
 
4 types of loyalty apps for brands, retailers and app developers
4 types of loyalty apps for brands, retailers and app developers4 types of loyalty apps for brands, retailers and app developers
4 types of loyalty apps for brands, retailers and app developers
sand_9999
 
Starbucks
StarbucksStarbucks
Starbucks
Zaharatul Sarah
 
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
anandhr22
 
CM ppt.pdf
CM ppt.pdfCM ppt.pdf
CM ppt.pdf
MeherKhan38
 
Starbucks 4ps
Starbucks 4psStarbucks 4ps
Starbucks 4ps
GUNASAI2
 
The Retail Revolution
The Retail RevolutionThe Retail Revolution
The Retail Revolution
Carter Jensen
 
Adv 492 assignment 10
Adv 492 assignment 10Adv 492 assignment 10
Adv 492 assignment 10
janussam
 

Similar to Blue Ocean Strategy – Starbucks Mobile Payments Application, Loyalty Rewards Program & Pre-orders (20)

Starbucks taking the “starbucks experience” digital - capgemini consulting ...
Starbucks   taking the “starbucks experience” digital - capgemini consulting ...Starbucks   taking the “starbucks experience” digital - capgemini consulting ...
Starbucks taking the “starbucks experience” digital - capgemini consulting ...
 
Starbucks Cofee Company: Transformational and Renewal
Starbucks Cofee Company: Transformational and RenewalStarbucks Cofee Company: Transformational and Renewal
Starbucks Cofee Company: Transformational and Renewal
 
How Starbucks took their experience digital
How Starbucks took their experience digitalHow Starbucks took their experience digital
How Starbucks took their experience digital
 
BAZUBAIDI - OCT07.docx
BAZUBAIDI - OCT07.docxBAZUBAIDI - OCT07.docx
BAZUBAIDI - OCT07.docx
 
Case study 3
Case study 3Case study 3
Case study 3
 
Starbucks corporation- 2011 case study
Starbucks corporation- 2011 case study Starbucks corporation- 2011 case study
Starbucks corporation- 2011 case study
 
Mobile payment systems final trends paper
Mobile payment systems final trends paperMobile payment systems final trends paper
Mobile payment systems final trends paper
 
After starbucks now messaging app line launches its prepaid debit card
After starbucks now messaging app line launches its prepaid debit cardAfter starbucks now messaging app line launches its prepaid debit card
After starbucks now messaging app line launches its prepaid debit card
 
7 keys to open doors at Starbucks
7 keys to open doors at Starbucks7 keys to open doors at Starbucks
7 keys to open doors at Starbucks
 
Customer Relationship pillars by Starbucks
Customer Relationship pillars by StarbucksCustomer Relationship pillars by Starbucks
Customer Relationship pillars by Starbucks
 
cafe_app
cafe_appcafe_app
cafe_app
 
Marketing group assignment (turnitin)
Marketing group assignment (turnitin)Marketing group assignment (turnitin)
Marketing group assignment (turnitin)
 
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluewshreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
shreya sharma.pdfgwegeljkghjkwegbljwehgiewhlewbluewhvluew
 
4 types of loyalty apps for brands, retailers and app developers
4 types of loyalty apps for brands, retailers and app developers4 types of loyalty apps for brands, retailers and app developers
4 types of loyalty apps for brands, retailers and app developers
 
Starbucks
StarbucksStarbucks
Starbucks
 
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
wepik-enhancing-business-intelligence-a-case-study-of-starbucks-2024031716452...
 
CM ppt.pdf
CM ppt.pdfCM ppt.pdf
CM ppt.pdf
 
Starbucks 4ps
Starbucks 4psStarbucks 4ps
Starbucks 4ps
 
The Retail Revolution
The Retail RevolutionThe Retail Revolution
The Retail Revolution
 
Adv 492 assignment 10
Adv 492 assignment 10Adv 492 assignment 10
Adv 492 assignment 10
 

More from Rajesh Prabhakar

Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red OceanBlue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
Rajesh Prabhakar
 
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
Rajesh Prabhakar
 
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
Rajesh Prabhakar
 
Case Study - Walmart Social Media Strategy – Engaging with customers on Twitter
Case Study - Walmart Social Media Strategy – Engaging with customers on TwitterCase Study - Walmart Social Media Strategy – Engaging with customers on Twitter
Case Study - Walmart Social Media Strategy – Engaging with customers on Twitter
Rajesh Prabhakar
 
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
Rajesh Prabhakar
 
Procurement & Supply Chain Management Software Market 2013- Strategic Importance
Procurement & Supply Chain Management Software Market 2013- Strategic ImportanceProcurement & Supply Chain Management Software Market 2013- Strategic Importance
Procurement & Supply Chain Management Software Market 2013- Strategic Importance
Rajesh Prabhakar
 
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
Rajesh Prabhakar
 
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
Rajesh Prabhakar
 
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
Rajesh Prabhakar
 
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
Rajesh Prabhakar
 
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
Rajesh Prabhakar
 
AT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
AT&T Social Media Strategy: AT&T Social Circle employees as Social AdvocatesAT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
AT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
Rajesh Prabhakar
 
General Electric Social Media Strategy – Innovative Technology oriented Content
General Electric Social Media Strategy – Innovative Technology oriented ContentGeneral Electric Social Media Strategy – Innovative Technology oriented Content
General Electric Social Media Strategy – Innovative Technology oriented Content
Rajesh Prabhakar
 
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
Rajesh Prabhakar
 
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
Rajesh Prabhakar
 
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
Rajesh Prabhakar
 
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
Rajesh Prabhakar
 
Global Technology Market 2014 – IT spending worldwide expected to be better
Global Technology Market 2014 – IT spending worldwide expected to be betterGlobal Technology Market 2014 – IT spending worldwide expected to be better
Global Technology Market 2014 – IT spending worldwide expected to be better
Rajesh Prabhakar
 
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teams
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teamsSocial Media Sales Strategy @ IBM Listening for Leads & inside sales teams
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teams
Rajesh Prabhakar
 
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
Rajesh Prabhakar
 

More from Rajesh Prabhakar (20)

Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red OceanBlue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
Blue Ocean Strategy Amazon Web Services – Leading the Cloud Computing Red Ocean
 
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
Blue Ocean Strategy – Air Asia Innovation & Blue Ocean strategy targeted non ...
 
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
Blue Ocean Strategy – Uber (Ridesharing Service) - Disruptive Cab Booking Ser...
 
Case Study - Walmart Social Media Strategy – Engaging with customers on Twitter
Case Study - Walmart Social Media Strategy – Engaging with customers on TwitterCase Study - Walmart Social Media Strategy – Engaging with customers on Twitter
Case Study - Walmart Social Media Strategy – Engaging with customers on Twitter
 
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
Case Study: Social Media Strategy Walmart – Informing Customers and enhancing...
 
Procurement & Supply Chain Management Software Market 2013- Strategic Importance
Procurement & Supply Chain Management Software Market 2013- Strategic ImportanceProcurement & Supply Chain Management Software Market 2013- Strategic Importance
Procurement & Supply Chain Management Software Market 2013- Strategic Importance
 
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers...
 
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
Social Media @ UBS – Social Media Monitoring outsourced to Accenture to hedge...
 
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
Case Study: Social Media Marketing Strategy @ JPMorgan Chase – Customer Servi...
 
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
Case Study: Social Media @ Wells Fargo – Listening to Customers through Socia...
 
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
Oracle Social Media Sales Strategy – Encouraging Sales team to actively engag...
 
AT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
AT&T Social Media Strategy: AT&T Social Circle employees as Social AdvocatesAT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
AT&T Social Media Strategy: AT&T Social Circle employees as Social Advocates
 
General Electric Social Media Strategy – Innovative Technology oriented Content
General Electric Social Media Strategy – Innovative Technology oriented ContentGeneral Electric Social Media Strategy – Innovative Technology oriented Content
General Electric Social Media Strategy – Innovative Technology oriented Content
 
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
Case Study: Social Media Monitoring @ Toyota analyzes social media data for s...
 
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
Case Study: Unilever Social Media Strategy – Internal Digital Social Platform...
 
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
Blue Ocean Strategy @ IBM – Customer Experience Lab Social Business & Analyti...
 
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
Social Media Strategy Case Study @ Nestlé – Digital Acceleration Team key to ...
 
Global Technology Market 2014 – IT spending worldwide expected to be better
Global Technology Market 2014 – IT spending worldwide expected to be betterGlobal Technology Market 2014 – IT spending worldwide expected to be better
Global Technology Market 2014 – IT spending worldwide expected to be better
 
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teams
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teamsSocial Media Sales Strategy @ IBM Listening for Leads & inside sales teams
Social Media Sales Strategy @ IBM Listening for Leads & inside sales teams
 
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
Global Mobile App Stores Market 2013 – Explosive growth continues till 2017
 

Recently uploaded

Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
FelixPerez547899
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
WilliamRodrigues148
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
Susan Laney
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
Christian Dahlen
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
SOFTTECHHUB
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
ecamare2
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Lital Barkan
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
CLIVE MINCHIN
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
my Pandit
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
CA Dr. Prithvi Ranjan Parhi
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
bosssp10
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
Chandresh Chudasama
 
How MJ Global Leads the Packaging Industry.pdf
How MJ Global Leads the Packaging Industry.pdfHow MJ Global Leads the Packaging Industry.pdf
How MJ Global Leads the Packaging Industry.pdf
MJ Global
 

Recently uploaded (20)

Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024Company Valuation webinar series - Tuesday, 4 June 2024
Company Valuation webinar series - Tuesday, 4 June 2024
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
 
How MJ Global Leads the Packaging Industry.pdf
How MJ Global Leads the Packaging Industry.pdfHow MJ Global Leads the Packaging Industry.pdf
How MJ Global Leads the Packaging Industry.pdf
 

Blue Ocean Strategy – Starbucks Mobile Payments Application, Loyalty Rewards Program & Pre-orders

  • 1. Analysis & Outlook Blue Ocean Strategy – Starbucks Mobile Payments Application, Loyalty Rewards Program & Pre-orders Starbucks redefined highly competitive coffee shop business and successfully created an uncontested market by turning the simple coffee drinking experience into a way of life experience by drastically redefining the coffee shop environment by adding music, Wi-Fi, relaxed seating and luxurious interiors. Till Starbucks disrupted the traditional coffee shop market most of the focus was on the price, location and quality of coffee shops. Starbucks innovative value proposition includes wide variety of mostly coffee based menu along with other types of drinks that catered to wide range of audience who are willing to pay top buck for the luxurious and relaxed interiors that are perfect environment for socializing with friends and relax. Another important aspect that Starbucks focused was on the quality of customer service with an exclusive aim of maximum customer delight and they meticulously recruited and trained the best talent in the industry that has added huge value to their brand reputation. Starbucks successfully created an aspirational brand that created highly loyal and delighted customers who repeatedly come to Starbucks for the unique experience it is offering. W. Chan Kim, co-author of the book Blue Ocean Strategy, in an interview with SHRM.org said Starbucks combined the Mom & Pop Coffee shop with the comfort of a modern five star hotel lobby which is the most suitable environment for relaxing and socializing with friends. While it is true that Starbucks sells coffee, “what they are really selling is atmosphere,” he said. By changing the atmosphere in which coffee is sold, Starbucks created an uncontested market and made the competition irrelevant, he said. Starbucks “created and captured new demand,” he said. For years Starbucks has been successfully maintaining its dominant position in the coffee shop market despite the market becoming the red ocean which is highly competitive with many players offering similar product and service offering of Starbucks. In order to hold onto its competitive advantage and create new value proposition for its customers Starbucks has started to focus on the use of information technology, mobility and particularly social media. One such innovative value proposition by Starbucks is the Mobile Payments Application. Starbucks launched its mobile card app in 16 stores in early 2009 and after customer’s adoption increased, Starbucks expanded it countrywide in United States and the mobile app allowed customers to pay by displaying a barcode that will be scanned in the store. Starbucks mobile payments system is hugely successful based on the fact that 6 million average weekly transactions worth US$ 1.5 billion in the U.S that accounts for a full 15% of transactions made at the U.S. Starbucks-operated stores despite the fact many digital wallet service providers are struggling, according to BI Intelligence. The innovative mobile app has digital tipping options, dashboard showing the current reward or loyalty points level, points available with current transaction, pick of the week coffee, recent transactions and messages. The App can also integrate with social media sites like Facebook, Twitter, etc. where customers can proudly show case their reward level milestones with their friends and family. This will further add up to their brand reputation and brand loyalty. By simply shaking the phone customers can choose the Rajesh Prabhakar Analyst Bio @ http://analysiscasestudy.blogspot.com/
  • 2. Analysis & Outlook barcode of the coffee drink they want to buy and pay accordingly. The app itself is modelled on the social media site interface where customers can see their regular purchases of Starbucks coffee and rewards points in a feed-style history and timeline. Starbucks’ disruptive mobile strategy integrated both its highly successful loyalty program called My Starbucks Rewards with payments by customers. Starbucks further incentivizes the customers who habitually buy and pay through mobile app and more reward points are awarded that are redeemed for free drinks and food. The app's success is not due to the ease of payment with a phone compared to cash or debit or credit card but the fact the customer can see the incentives and rewards he is going to get that will further increase his loyalty with Starbucks. In a way Starbucks is locking the customer for near future. Starbucks loyalty program was diligently crafted over the years and it has been the best in the coffee shop industry or any other industry. With more than 12 million active users in United States and Canada, Starbucks have added one more new feature where customers can preorder their coffee using the mobile app and pick up the coffee later. A prime example of this is our forthcoming mobile order and pay initiative that will allow customers to use their phones and MSR (My Starbucks Rewards) accounts to order ahead of arriving at a store where we plan to pilot in a major U.S. market later this year," said Howard Schultz, Starbucks CEO. Customers wanted this functionality of preorder through mobile for the past few years, particularly since the mobile based cab hailing service Uber huge success. Starbucks is able to offer this service right now as the company feels its technology and in-store operations are well equipped to handle such requests. Starbucks is also expanding the number of drive through express service outlets that are best suited for preorder system. Starbucks is also talking to partners and other businesses like retail outlets that will also allow the customers to use their mobile application payment system, rewards system and loyalty programs in non-Starbucks outlets. Through its mobile payment system Starbucks eliminated the need to carry cash, coin change issues, tipping problems, reduced the time spent on ordering and making coffee, understanding the menu and coffee types, offers and rewards available, raised the customer delight, loyalty and rewards, number of visits, new customers and created a new revenue source for the company, helped in acquiring new customers and also created a uncontested space in the digital wallet market. The Eliminate Raise Reduce and Create gird and value proposition proves the fact that Starbucks is successfully defending its blue ocean market and using strategy to maintain its competitive advantage and dominant position in the industry. Starbucks is one Blue Ocean Strategy Book example company that is still maintaining the market dominant position through innovation and disruptive technologies. Rajesh Prabhakar Analyst Bio @ http://analysiscasestudy.blogspot.com/