Document Type

Closed Project

Publication Date

Spring 2017


William Eisenhauer

Course Title

Advanced Engineering Economics

Course Number

ETM 535


The economic success of a company depends on the ability to identify the needs of the customers and analyze the market. In our paper, we’re going to look into the best market strategies adopted by Starbucks from the beginning of its time and highlight the Mobile Order and Pay(MOP) concept adopted by the coffee giant. Starbucks is an American coffee company founded in 1971 in Seattle, Washington. The coffee chain which initially sold roasted coffee created a strong market position for itself by expanding into brewing and food sales. Through the years as the food industry is moving towards digital, Starbucks has followed the similar path which enables customers to order their beverage through their smartphone with the idea to eliminate long lines at the stores. This created an avalanche of orders and boosted the sales, however, it resulted in lines moving from the cash register to the order pick-up counter. Moreover going digital most likely would cost losing the loyal Starbucks customers due to heavy lines created by the Mobile Order Pickup. Through this paper we attempt the following: 1) To evaluate the economic situation. 2) To propose three scenarios to overcome the operational problem.


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