Aug 3, 2022

Starbucks: Using Big Data analytics and AI

Starbucks is one of the huge international companies that adopted big data a few years ago. They claim that the reason why they switched to big data is "to adjust its menu according to the customer's preferences." (Kumari, 2022) However, from my point of view, the main reason Starbucks switched to big data is to catch more business and more benefits in the market. The crucial question is how big data can generate more profits, leads, and business for ultra big corporations. We can go through many reasons, but these are the major ones that genuinely work for corporations to increase their domain internationally. 

First, Starbucks needs to clearly understand where, when, and why their customers buy their products. So, just big data can have an answer for them. Second, Starbucks needs to keep their current customers with some sort of loyalty program, which is also related to the first reason. Big data analysis can handle that. Third, Starbucks needs to seize cross-selling and upsell information as much as possible, and big data have an answer for that. Forth, targeted advertising is of the freshest and highest importance in the current market, and without big data, it is impossible to advertise to targeted customers for Starbucks. Fifth, just with big data, Starbucks could improve the inefficiencies of the supply chain, and we all know the importance of the supply chain for a company such as Starbucks. Sixth, future forecasting is the most crucial element for Starbucks to be alive and for business continues, and big data is the only tool for Starbucks to forecast the future and get the best out of it. Finally, innovation is the main pillar of being alive for a big corporation such as Starbucks. Big data is the best tool for innovation, discoveries, and addressing Starbucks' best sources of revenue.

On the other hand, Starbucks has many good reasons to switch to big data in terms of time and cost. Starbucks could reach an excellent plan of cost-saving and time-saving, understand the conditions of technical and logical aspects of the international market, closely watch the social media networks, boost customer acquisition and retention, solve advertisement issues, and more. (Team, 2021)


Reference

Kumari, R. (2022). Top 10 Companies that Uses Big Data | Analytics Steps. Analyticssteps.Com. Retrieved 2022, from https://www.analyticssteps.com/blogs/companies-uses-big-data

Team, T. (2021, June 16). Why Big Data – Benefits and Importance of Big data. TechVidvan. Retrieved 2022, from https://techvidvan.com/tutorials/why-big-data/

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