Analyze Cataracts using the competitive forces and value chain models. Cataracts is the world's largest specialty coffee retailer with the assistance of technology. Cataracts uses management information system In order to sustain in a market. This technology assists them In many ways such as product quality, efficiency as well as customer service. Now, Cataracts have 1,700 coffee shops In 55 countries and grew throughout the united States and globally opening franchises at an Impressive rate.
The use of technology helps Cataracts to achieve low cost leadership. Cataracts can lower operational costs and offer price-reduced specials. Costs reduction from procedural changes made it possible for Cataracts to offer these lower prices. Cataracts has revamped Its in-store technology with wireless technology and mobile digital platform. When Cataracts set out to improve its customer experience, it found that more than a third of its customers are active users of smartness.
So, the company implemented a technology that allows customers to pay using a marathoner app. This technology is integrated with Cataracts Card system, which allows customers to pay with a pre-paid and rechargeable card at any Cataracts branch. When customers make a purchase using the app, a cashier scans a bar code displayed on the phone and resulting sale Is charged to customer's Cataracts Card account. With this technology, It can save time consuming and allow customers experience more efficient and quality service.
Other than that, Cataracts pursued a more aggressive product differentiation strategy. This emphasizes the high quality of their drinks and efficient and helpful customer service. Like many of their competitors such as McDonald's and Dunking' Donuts, Cataracts is also eliminating inefficiency and enable them to save operational costs due to faster and better customer service. If Cataracts is able to reduce the time of each employee spends making a drink, the company can make more drinks with the same number of employees or with a fewer employees.
Besides, to stay competitive, Cataracts Is strengthening customer and supplier Intimacy. Management information systems and streamlined business processes have allowed time saving to transfer Into a better customer service. Therefore, customers now feel more connected with a friendlier service, the chain have also started adding names to their customer drinks to offer a more personalized service and better customer experience. 2) What is Cataracts' business strategy? Assess the role played by technology in this business strategy.
Cataracts' business strategy is to continue to offer a unique experience such as offering high-end specialty coffees and beverages, friendly and knowledgeable servers and customer-friendly coffee shops. Technology assisted the business strategy by giving customers the benefits of free Wi-If access and Cataracts APS to access on their smartness. Wireless technology enhanced Cataracts' business process simplification effort. By 2011, Cataracts had returned to profitably and continuing growth, with plans to open 500 new stores because of the success of changes In business strategy.
Technology has helped Cataracts in so many ways to stay competitive in market in order to sustain its life. With technology, Cataracts have been able to launch the Cataracts Digital Network, and the use of paying via Cataracts App on smart phones. Besides, technology also helps the baristas to make drinks faster without need to bend down to scoop coffee, cutting down on idle time while waiting for coffee to drain and finding ways to reduce amount of time to make coffee. The most important thing, technology has helped Cataracts to generate higher revenue and profits.