Starbucks Canada - Case Study Example

Starbucks Canada The notions of data, information as well as their flows are interconnected; however, many people use them as synonyms. Nevertheless, there are significant differences that need to be addressed. Thus, data is a raw piece of information, so to speak; it reflects a certain aspect of reality. A good example of data is the table that shows which smartphones are equipped with NFC and which are equipped with Bluetooth LE. The importance of it lies in the fact that Apple iPhone 5 is not equipped with NFC and that is mere a piece of data. Information is data that has been processed and given a certain meaning. In other words, it engaged the data, but allows a person to make more sense of it. If one takes a look at the example which was mentioned more, it is an important piece of information that Apple iPhone 5 does no support NFC: this means that a certain part of the Starbucks visitors will not be able to able to use the mobile payment option that is based on this kind of technology. With this in mind, it become obvious that Bluetooth LE is much more preferable. Speaking of flows, one should note that they represent data and information in progress. For example, a flow of data should reflect the number of customer served daily in Starbucks Canada. However, if this data is properly processed, it will result in information flow which might take a form of a chart, depicting the popularity of the brand among the people. 2. There are several reasons why Starbucks Canada should reassess its mobile payments strategy. First of all, this is conditioned by the fact that the major competitor of the company in question, namely Tom Horton is making advances in the direction of mobile payments and is currently taking the lead in it. Indeed, this company seems to be willing to be the first to introduce mobile payment and if it the first, it will make this its feature for a certain period of time. Secondly, while Starbucks Canada is enjoying its stable share of the market, the latter is relatively small. The other two competitors are way ahead. What is more important is that introduction mobile payment option might result in the redistribution of shares in the market and if Starbucks Canada is slow to adapt the new technology its share may become even smaller. In other words, it is vital for the company to make the most out of this opportunity. 3. There are several important criteria that should be taken into account while assessing various mobile payment options. To begin with, it is the compatibility with the devices that the company and the clients have. It has been mentioned before that a significant number of clients use iPhones, but they will be useless in case Starbucks Canada engages NFC technology. On the other hand, introduction of the Bluetooth beacons it difficult as well since the company in question does not have them and will have to order them. The second criteria is the amount of money that introduction of technology will cost. For example, should Starbucks Canada rely on the software which was developed in house, it will require minimum cost for upgrade of the equipment and this will not result in significant expenses. On the other hand, installation of BLE beacons will require assistance of a professional who is paid $50 per hour. If one multiplies this amount of money by the number of stores that will have to be equipped with beacons, one will realize that it will result in significant expenditures. Finally, the cost training of the personnel should also be taken into account. While some options provide an outstanding experience for the customers (they will be able to pay for their coffee without even taking their smartphone out of their pocket), the same option might cause so difficulties for the employees of Starbucks. In order to be able to avoid them, they will have to be trained and this will require both time and money. So, the less difficult a new mobile payment option is for the company employees the better. 4. There have been several issues which were faced by Starbucks US after their roll-out of Square mobile payments. The first of them focused on some technical difficulties, namely that some places were equipped with the scanners that could read only one dimensional codes while it was required to be able to read two-dimensional codes. While the equipment of the official Starbucks placed was equipped with the latter kind, up to 30 per cent of individually licensed stores were not. As a result, on average one in three of cases had troubles. In addition to that, the staff noted that it was not prepared for the introduction of the system. Many noted that they came to work and at a certain point they saw a new button on the screen, but nobody taught them how to use it. As a result there were troubles in interaction with the customers as the employees were rather confused about the new system. Recommendations There are several strategies that Starbucks Canada can utilize, following “apps not adds” philosophy. First of all, it might focus on providing more convenience to the customers who use their apps. For example, a company might come up with an app that would allow people to order their favorite coffee and customize it in any way in advance. This would be quite convenient as the only thing that they will have to do is to come in and take it. Speaking of offering a unique value to the customers, Starbucks Canada might design an application that would allow the users to trace the origin of the coffee beans that they will consume. It would be a great experience to be able to learn where the coffee was grown. This will surely contribute to the uniqueness of each visit to Starbucks. The company in question may also provide some social value with the help of its applications. For example, it might create an opportunity for the customers to exchange gift cards that can be further used in Starbucks with the help of social networks. For example, instead of sending a picture or a song to a friend on Facebook one might send a gift card that would guarantee a free coffee in Starbucks. This can become a rather popular feature for those who like communicating online first and then meet in person. Applications can also be used to distribute different incentives. For example, there can be an application that would contain the map of Canada with Starbucks places marked on it. If a user can check in one of them, he or she will be entitled to a free coffee. This will motive people to move around the city to discover new Starbucks places and visit one should they happen to be in a different town. Finally, it is not a secret that many people use their smartphones for games. That is why Starbucks might create a game that would be fun to play and the result of which can be used in the real life. For example, for every thousand of point a person will earn a dollar. So, if one wants to obtain a free coffee one will simply have to play the game long enough. It is obvious that the game will feature symbols of the company and will promote it. Read More