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Starbucks Canada The Mobile Payments Decision Case Solution

Solution Id Length Case Author Case Publisher
2362 1525 Words (6 Pages) Deborah Compeau, Cato Pastoll, Tyler Rochwerg, Brandon Vlaar Ivey Publishing : W15169
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The coffee industry of Canada is tough and hence the competition is strong. Some of the major players in the market are Starbucks, McDonald's, and Tim Hortons. Starbucks took a different route and added premium pricing of its products because of the best quality customer experience they promise to deliver. In December 2013 Starbuck's biggest rival, Tim Hortons introduced a mobile app for quick payment at the retail outlet. The launch of this mobile app proved to be troublesome for Starbucks as they were still working on their personal mobile application. 

Now Starbucks is thinking to reassess its mobile payment strategy and is considering different options. However, Starbucks has to keep in mind the failure of square wallets in the US. It failed badly because of the little training of the management and other operational shortcomings. Therefore Starbucks should consider adding NFC to their existing Starbuck app. In this case, Starbucks can only go for a standalone mode of payment option. 

Following questions are answered in this case study solution

  1. What role could 3D printing play in changing supply-chain management? What are the advantages, disadvantages and limitations of 3D-printing technology compared with those of traditional manufacturing technology? What could be the short-term and long-term impact of 3D printing on the Chinese manufacturing industry be?

  2. Why does Starbucks Canada need to re-assess its mobile payments strategy? Given the shape of the mobile payments landscape in 2013, what are the most important criteria that management should be using to assess the various mobile payment options? What caused the issues faced by Starbucks US after their rollout of Square mobile payments? As a senior manager for Starbucks Canada, what would you recommend and why?

Case Analysis for Starbucks Canada The Mobile Payments Decision Case Solution

1. What role could 3D printing play in changing supply-chain management? What are the advantages, disadvantages and limitations of 3D-printing technology compared with those of traditional manufacturing technology? What could be the short-term and long-term impact of 3D printing on the Chinese manufacturing industry?

3D printing technology has proved to be a huge disruptive breakthrough in the supply chain industry. The capacity to produce everything from practically whatever element employing a blueprint is exciting, especially for organizations in specialized businesses that require particular items. The impact of 3D printing on the supply chain of businesses are highly dependent on the sector and the nature of business. Additive manufacturing can readily reduce time to reduce processes for a major company especially for the one that owns each aspect of the supply chain such as warehousing, transportation, distribution, shipping, and production. Many supply chains need a supplier of the raw material and a manufacturer to convert the raw resources into useful goods. However, with the advent of additive manufacturing such as 3D printing, the positions of supplier and manufacturer can readily be taken by the advanced form of printing. Supply chains can adjust stockpiles and inventory as needed and special thanks to additive manufacturing. Whenever a piece or item is needed, the request is delivered to a 3D printer, which generates it right away.

Every technology comes with its advantages and disadvantages. Considering the advantages of 3D printing, lower setup costs are top of the list. 3D printing is also known to have extremely low tooling costs. 3D printing is highly cost-effective since it has lower production costs especially when it comes to prototyping. It enables big savings by making the supply chain operations more systematic and simpler. 3D printing develops pieces bits by bit and surface by surface. It works differently than subtractive manufacturing methods. Unlike the CNC machining, 3D printing puts filament only at the required places. This results in lower wastage, ultimately resulting in lower garbage handling expenses. In this way, it is far better and safer for the environment. Conventional supply chain networks are notorious for being slow to respond. 3D printing practically eliminates delivery schedules by minimizing production time and eliminating foreign freight. Often these printable items are generated in moments, not months, relying on the intricacy. In addition, several machines may rapidly expand productivity levels to suit requirements. Hence, 3D printing offers flexibility. The incorporation of 3D printing in the supply chain has also proved to be a reason for higher loyalty and satisfaction among the customers. 

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