Application Case 8.5- Starbucks Exploits GIS and Analytics to Grow Worldwide

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School

Grand Canyon University *

*We aren’t endorsed by this school

Course

600

Subject

Information Systems

Date

Dec 6, 2023

Type

docx

Pages

Uploaded by MagistrateJellyfishPerson3768

Application Case 8.5: Starbucks Exploits GIS and Analytics to Grow Worldwide Questions for Discussion 1. What type of demographics and GIS information would be relevant for deciding on a store location? Relevant demographics for store location decisions include population density, income levels, age distribution, and cultural preferences. GIS information should cover trade areas, retail clusters, traffic patterns, and customer traffic. For example, understanding if an area has a high concentration of offices or schools helps predict customer traffic. Analyzing demographics helps in tailoring products to the local market. GIS data on competitors' locations and transportation hubs is also crucial. Combining these factors allows Starbucks to open new stores in the most suitable locations. 2. It has been mentioned that Starbucks encourages its customers to use its mobile app. What type of information might the company gather from the app to help it better plan operations? Starbucks' mobile app can provide valuable data for operational planning. The company can gather information on customer preferences, popular menu items, peak hours, and preferred payment methods. App usage data may reveal trends in customer behavior, helping improve inventory management and staffing levels. Geographic data from the app, such as the locations where customers place orders, can enhance store placement strategies. Additionally, the app enables personalized promotions and loyalty programs, encouraging customer engagement and providing insights into regional preferences. 3. Will the availability of free Wi-Fi at Starbucks’ stores provide any information to Starbucks for better analytics? Providing its customers with free wifi at Starbucks offers the company valuable insights about its customers. Analyzing wifi usage data can reveal peak usage times, allowing Starbucks to adjust staffing levels accordingly. Additionally, monitoring device types and the websites visited can contribute to targeted marketing efforts. By integrating wifi analytics with GIS data, Starbucks can enhance its understanding of customer behavior in specific locations and work on its operational strategies in order to achieve improved customer satisfaction and business performance.

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Application Case 8.5- Starbucks Exploits GIS and Analytics to Grow Worldwide

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