Case Study Analysis [10 Marks] Cool Beans: Starbucks Refines the Customer Experience #Morning YES STARBUCKS Starbucks is brewing up higher sales through new beverages and cafs in global markets. It also continues to refine the retail environment to increase customer value. To speed up purchases, it offers pay-by-cell phone and order-ahead options. To pay with the Starbucks app, consumers with iPhone, Android, or Windows cell phones download the app and let cashiers scan the Starbucks code on the screen during checkout. The app links to the customer's Starbucks Card, combining the rewards of a loyalty program with the convenience of a prepaid card, for making purchases. Nearly a third of Starbucks' sales volume now comes through its mobile wallet. Starbucks aims to open 12,000 additional stores, refocus on its coffee beverages, and expand its focus on technology and its rewards program. With company food sales reaching 21 percent of total sales in the United States, Starbucks aims to elevate its food offerings. The company invested in high-end Italian bakery Princi and opened a bakery inside the company's flagship Reserve Roastery in Seattle. Starbucks' Roasteries are designed to be larger than their traditional caf concept and will incorporate Princi bakeries, including those slated for Shanghai, Milan, New York, Tokyo, and Chicago. When it comes to innovation, Starbucks proactively monitors the marketing environment to identify new trends. Its many successful initiatives demonstrate that the firm is ready and willing to make changes to maintain its competitive advantage and gain market share. Questions: Case Study Analysis Critical Thinking Questions 1. How did Starbucks introduce technological changes to speed up purchases? 2. Why must Starbucks remain proactive in monitoring the marketing environment? 3. Do you think a greater investment in food offerings will benefit Starbucks in the long run? Why or why not