Hi Everyone,
I am glad that this blog is finally working...after few attempts !!
As we all know we have been running behind the time for the assignment 2, we were suppose to be doing stage 2 this week but are in stage one so i request all members to start blogging and make this assignment a success!!
So lets get started people...
The company which i have selected is Starbucks.
You can visit http://www.starbucks.com/about-us/company-information and http://www.studentwebstuff.com/mis/showthread.php?t=8668 for more information.
The reason i relate this company to the tourism industry because this company fits into the largest segment of disposable income spending-- food and beverages. The steady growth in this segment in the 1990's has led to an abundant number of new companies. As demand for convenience has made eating out a normal routine, the demand for speciality food services has increased in recent years. So i place this company under 'Specialty Eatery Industry'.
Starbucks Corporation is known for its world premium coffee. Over the past decades, the company has established a strong brand name, targeting trendy customers using information technology (IT).
I am glad that this blog is finally working...after few attempts !!
As we all know we have been running behind the time for the assignment 2, we were suppose to be doing stage 2 this week but are in stage one so i request all members to start blogging and make this assignment a success!!
So lets get started people...
The company which i have selected is Starbucks.
You can visit http://www.starbucks.com/about-us/company-information and http://www.studentwebstuff.com/mis/showthread.php?t=8668 for more information.
The reason i relate this company to the tourism industry because this company fits into the largest segment of disposable income spending-- food and beverages. The steady growth in this segment in the 1990's has led to an abundant number of new companies. As demand for convenience has made eating out a normal routine, the demand for speciality food services has increased in recent years. So i place this company under 'Specialty Eatery Industry'.
Starbucks Corporation is known for its world premium coffee. Over the past decades, the company has established a strong brand name, targeting trendy customers using information technology (IT).
To attract trendy customers who are willing to pay premium prices for the high-end coffee and other products, Starbucks has invested heavily on IT. As an example, the company has installed AT&T’s Wi-Fi service over 7,000 locations nationwide. Later, the company has made a “partnership with Apple’s iTunes store to make music available via Wi-Fi hotspots”. In result, the company has attracted the targeted age demographics and established a high-tech image. Additionally, Starbucks has strong relationships with its suppliers and IT played an important role to achieve operational efficiencies. Another example is that the company “had strong real estate, location management and selection systems to help identify demographics” when the company was expanding.
But after the decline in 2009 due to the financial crisis Starbucks has adopted new turnaround strategies which will continue to focus on operational excellence more importantly, the company focuses on customer intimacy. Using digital media, the company has communicated with customers continuously to capture the customer needs. Recently, the company has introduced “myStarbucks” and “Starbucks Card Mobile.” While “myStarbucks” enables customers to “find and contact stores, make drinks, and scan nutritional information”, “Starbucks Card Mobile” allow customers to make mobile payments using a “virtual Starbucks card”. The latter service could transform the use of phone devices as financial transactional devices, which has been staggered in the U.S. Starbucks opts for Mobile Payment Systems (2D Barcode Technology) instead of Near feild communication (NFC).
To read more kindly visit the site mentioned above.
Hi Jaini, I really enjoy the reading and learning process of your organization strategic ICT plan analysis, which is good and useful for me to understand the coffee giant better. For the strategic elements of Starbucks’ ICT plan, firstly, I think ‘to attract trendy customers who are willing to pay premium prices for the high-end coffee and other products’ can be summarized as to increase profitability. Moreover, as what you have mentioned to enhance operational efficiencies. In addition, to maintain good relationship with customers by using digital media to communicate with customers continuously to capture the customer needs. Lastly, in order to satisfy consumers, Starbucks introduce “myStarbucks” and “Starbucks Card Mobile” which enables customers to find and contact stores and scan nutritional information easily and allows customers to make mobile payments using a “virtual Starbucks card respectively, the same to the service - Mobile Payment Systems with 2D Barcode Technology.
ReplyDeleteFor the effectiveness or value measurement of Starbucks’ strategic ICT plan, I think:
1. Increase profitability - As the profitability of Starbucks is measurable and quantifiable, its profitability will quantify as the volume of customers, consumers’ consumption abilities, the sales volume of high-end coffee, total revenues and so on. Owing to these, comparing Starbucks’ a series of quantized data before and after implementing strategic ICT plan is feasible to measure its effectiveness.
2. Maintain good relationship with customers - The most effective and most simple way is to do the customers satisfaction survey and visit to the customers through different communication methods. The feedbacks and the data calculated from these surveys can be the outcomes of the measurement.
3. Satisfy consumers – Be similar with the measurement of maintaining good relationship with customers, except customers’ satisfaction surveys and visiting to the customers, evaluate the differences of customers’ complaints volume before and after implementing strategic ICT plan is a feasible method. As the volume of customers’ complaints directly reflect the consequences of an organization to satisfy consumers.
Hey,
ReplyDeleteYeah i agree that these ICT strategies will give Starbucks an edge over its local competitors. But i also wonder that the usage of 2D Barcode Technology is a hasty step Starbucks have taken because now that the NCF technology is coming up, I think Starbucks should have waited for this technology to be introduced into the market as its more effective, which the competitors might use..
And my other hand i think that the expansion of Starbucks is fast and that they have stores being opened in countries which are slow in adapting such new upcoming technologies so i wonder what is going to be the scenario in such stores, would like to know what you have to say on this..
-Jaini
Hi Jaini, wow, your opinions are really professional and high-level. I do agree with your opinions after careful consideration. Between the 2D Barcode Technology with near field communication (NFC) Technology, I also think the latter is more appropriate for Starbucks to use in practice. According to some relevant materials, NFC devices can be used in contactless payment systems, similar to those currently used in credit cards and electronic ticket smartcards. Like Google Wallet allows consumers to store credit card information in a virtual wallet and then use an NFC-enabled device at terminals. Germany, Austria and Latvia have trialed NFC ticketing systems for public transport. And China is using it all over the country in public bus transport. In India NFC based transaction is being implemented in box offices for ticketing purposes. Comparing with the 2D Barcode Technology, the usage of NFC is more convenient as its instant payments and coupon delivery as we do with our credit card or debit card. Besides, due to short transmission range, NFC-based transactions are possibly secure.
ReplyDeleteAs for the issue you found between Starbucks’ fast expansions with its slow adapting new upcoming technologies, I think we can not say it absolutely. As you mentioned, Starbucks have introduced a series of technologies, like AT&T’s Wi-Fi service, ‘partnership with Apple’s iTunes store to make music available via Wi-Fi hotspots’, usage of digital media, “myStarbucks” and “Starbucks Card Mobile” and so on. In addition, business usually accompany with the rational and all-around decision-making process, all the decisions based on all aspects of the organization, so we can not say the technology is good then we bring in immediately, right? Maybe Starbucks just consider it is not the best time to introduce this new technology or even Starbucks are negotiating with this company. They have their own considerations.
I agree with this ICT strategy because nowadays everyone uses internet for almost all the time. Starbucks really provides the customers' needs. The company intend to attract the customers and make the environment more convenient and practical so that the company can increase the revenue and satisfy the customers at the same time.
ReplyDeleteIn addition, Starbucks also want to communicate with the customers in every possible way with technologies. The customers can get information from starbucks very easily through their mobile phone.
But in my opinion, this ICT plan only can be applied in some countries especially developed countries. Let's take example my country, Indonesia where the most people are still primitive. Everyone has mobile phone but the economic level in my country is low so most people only can afford cheap mobile phone which cannot get the application or even use Wi-fi and most elderly people do not how to use computer and internet. It may hit most of market segmentation but it is only applicable in some places.