“STARBUCKS AND OTHERS: THE FUTURE OF PUBLIC Wi-Fi”
CASE STUDY ANALYSIS
SUMMARY:
Wi-Fi usage has been on the upswing recently, thanks to the rise of smartphones, especially the iPhone. Whether it is airports or cafes, people are increasingly logging onto Wi-Fi networks.The case talks about free Wi-Fi in various areas of businesses like restaurants, airports etc to attract crowd and to increase their business. It talks about transition from Wi-Fi – for money to Wi-Fi as a lure. The various strategies implemented by these businesses to give away free public Wi-Fi. Various issues like pricing, security issues etc are discussed in detail in the analysis below. The case also talks about newer trends like mobile broadband which may be a threat to Wi-Fi networks.
Starbucks is facing competition from McDonalds and Seattle’s Bauhaus books and coffee that are also using Wi-Fi.
As Wi-Fi hot spots are becoming free some operators are turning to advertising to make money for example Ji wire is the company which serves ads to more than 8 million people ,In cluding Boingo group. This company has started to target on I phone users
Now a day Wi-Fi is free at airport one of the largest is Denver international. In addition to advertising the free Fi network Wi-Fi access is subsidized by Disney ABC television shows where users can down load over the connections airline. The use of Wi-Fi in airlines has become competition for railways as most of the business people who show a major interest in using Wi-Fi for killing the time when they are free
Though the prices are ranged at premium at all these industries foe product and services the customers are willing to access their services and buy their products as they are providing free Wi-Fi services.
STARBUCKS:
Now that the market is flooded with espresso machines at quick service restaurants, grocery and convenience stores outlets all competing in the specialty segment, Starbucks finds it more