The user of information system achieves a low cost leadership

The user of information system achieves a low cost leadership; there are low operation costs and therefore a company can afford to charge lower price. Starbucks engaged in the mobile digital platform, when realizing over a third of their customers were smart phone owners. The Starbucks App allows regular customers to pay with prepay or top up their card and use this at every branch to pay for their drinks by scanning bar code displayed on their phone.
Starbucks implemented a technology that allows customers to pay using a smart phone app. When customers make a purchase using the app, a cashier scan’s a bar code displayed on a phone, and the resulting sale is charged to the customers starbucks card account. This kind of strategy made headlines as the company made approximately 42 million transactions in its first 5 months of use. It also allow users to check in and receive award points using starbucks site, it gained popularity because of the foursquare check-ins of any company to date this feature Starbucks has.
Starbucks is able to reduce the time each employee spends making a drink, the company can make more drinks with the same number of workers or with fewer workers Wireless technology enhanced starbucks business process simplification effort.
The user of information system achieves a low cost leadership; there are low operation costs and therefore a company can afford to charge lower price. Starbucks engaged in the mobile digital platform, when realizing over a third of their customers were smart phone owners. The Starbucks App allows regular customers to pay with prepay or top up their card and use this at every branch to pay for their drinks by scanning bar code displayed on their phone. This is showing the use of management information system making the customer experience more efficient and of a better quality at a retail level of the supply chain.
tarbucks changes up their menu by using product differentiation. They come up withnew drinks that their competitors do not offer and keep their prices around the same amount.Starbucks also narrows down their target market by focusing on individuals who drink coffee.Their market niche is huge and they have become a powerhouse in the coffee competition. They offer technology related incentives such as ITunes and providing customers with free access tothe Wall Street Journal.