Week 5 Discussion Forum 2

Starbucks uses mobile advertising and commerce to drive sales and remain relevant in a
technological world. (Green & Keegan 2019) note that mobile advertising and commerce are
effective due to easy access to the internet. Through the Starbucks app, one can make and pay for
orders and locate the nearest Starbucks using GPS technology. Customer interactions have also
been enhanced through the app, which performs many functions such as tracking the status of
loyalty points, identifying the music playing in a Starbucks, customizing and monitoring the
status of their orders. Starbucks also runs mobile ads through its mobile app. Starbucks uses text
messaging and notifications to inform customers of current offers and how they can be accessed.
Starbucks can use GPS technology to inform customers when they are near a Starbucks, even if
they are not actively looking for one. Customers who always have GPS on can be notified that
there is a Starbucks nearby with further directions on getting there through a notification.
Starbucks can use cryptocurrency such as bitcoin to pay for orders for mobile payments.
Implementing the GPS strategy could have challenges with privacy infringement (Iqbal &Lim
2010). Some customers may feel that Starbucks is tracking their movement, which could have
severe ramifications for their reputation. This can be solved by having customers opt-out of the
GPS service. The use of cryptocurrency as a form of payment could be difficult to implement
because some governments do not recognize cryptocurrency as an acceptable form of currency.
If Starbucks entered the global market through licensing, they would have to ensure the licensee
conforms with privacy rules which differ between different countries. They would also need to
ensure that the licensee has the technology to roll out GPS and accept cryptocurrency as a form
of payment. Entering the market through investment strategy such as joint venture would allow
Starbucks to exercise control over the decision on how to use the new strategies.

Green, M. C., & Keegan, J. W (2019). Global Marketing (10th edition) [E-book]. Pearson.
Iqbal, M., & Lim, S. (2010). Privacy Implications of Automated GPS Tracking and Profiling.
IEEE Technology and Society Magazine, 29(2), 39–46.
https://doi.org/10.1109/mts.2010.937031