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Starbucks Use of Wireless Technology

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In this world of technological advancement, companies are trying to gain competitive advantage through using unique ways of reaching out to the customers. Since wireless technology is everywhere, many companies have commercialized and expanded their business through it. Starbucks is one such company. Starbuck uses GPS (Global Positioning System) in its Application...

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In this world of technological advancement, companies are trying to gain competitive advantage through using unique ways of reaching out to the customers. Since wireless technology is everywhere, many companies have commercialized and expanded their business through it. Starbucks is one such company.
Starbuck uses GPS (Global Positioning System) in its Application to know the location of the customer on the basis of which it sends notification and music information to help select the customer their taste of music as this system provides accurate position, time and speed information through satellite.[footnoteRef:1] This has increased customer engagement and brand loyalty as the App offers other unique features too but the tracking of location and giving out customized packages within the area of the customer has made it more successful in attracting the customers towards them. Also due to its built-in GPS system in the user Application, it can suggest a nearby Starbucks to help the customer find it. This has increased brand knowledge among the customers as they are more aware of the locations of Starbucks due to the GPS system. [1: Torrington, M. (2016, April 12). Starbucks: A Case Study in Effective Mobile App Marketing. Digital Turbine.]

To make the right decisions, Starbucks has used GIS (Global Information system) to analyze locations before opening new places and base their strategies on the information of that locality like population density, average income etc since GIS uses geographic data in charts and maps form.[footnoteRef:2] This helps Starbucks in analyzing which location or area would be best suited for their business and how they can position themselves for those people, increasing its customer base. Not only this, they can further base their portfolio strategy, marketing strategy etc. on the basis of the information they get through GIS. One of the executives of Starbucks, Laurence Norton, even said that they went ‘BIG’ due to GIS as it helped direct their strategies based on the data and information of GIS.[footnoteRef:3] They have a GIS Application called Atlas, molding and directing the pathways of Starbucks to success. [2: How Household Names Use GIS. (2019, October 9). USC Dornsife.] [3: Wheeler, C. (2014). Going BIG with GIS. Esri User Conference. ]
It introduced wireless charging-power-mats in 2011.[footnoteRef:4] This technology didn’t use cables but a wireless technology that transmits wireless charging to the mobile devices. The customer just needs to connect the ring provided or power-mat spots to their phone. This made it easier for the customer to even charge their phones in the coffee shop in their seating spot. Since Starbucks customer base is active smartphone users; introduction of wireless technology like this made the customers more conducive to the Starbucks environment increasing their brand loyalty. Not just this, Starbucks offers wireless LANs in all of its stores at a speed of 10Mbit/sec, giving access to internet to its consumer’s so spent large chunk of time on social media.[footnoteRef:5] The convenience and ease of use of smartphones while sipping coffee makes the coffee shop so attractive to the customers as while going to work or study, they can have coffee while charging and using their phones. The overall in-store experience improved through wireless technologies, making the customer spend more time in the coffee shop. [4: Greenemeier, L. (2014, June 24). Starbucks to Offer Wireless Caffeine for Smartphones. Scientific American .] [5: Brewin, B. (2001, Jan 08). Starbucks takes wireless leap. Computer World .]
Starbucks uses wireless technology to know its customer, to identify the locations and to devise strategies which has helped them in growing their business and retaining their customers. In a way, like many other businesses, wireless technology has enhanced and simplified the complex decision making, helping the company in being more successful over the years.
References
Brewin, B. (2001, Jan 08). Starbucks takes wireless leap. Computer World .
Greenemeier, L. (2014, June 24). Starbucks to Offer Wireless Caffeine for Smartphones. Scientific American .
How Household Names Use GIS. (2019, October 9). USC Dornsife.
Torrington, M. (2016, April 12). Starbucks: A Case Study in Effective Mobile App Marketing. Digital Turbine.
Wheeler, C. (2014). Going BIG with GIS. Esri User Conference.

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