Back to Basics at the Bux

For my last blog entry of this semester, it is only appropriate for me to write about the company that I love so much and worked for over a 5 year span. Starbucks, in its efforts to get back to re-simplify its business model and get back to "the third place" under the direction of founder and the self re-appointed CEO Howard Schultz, has just announced a huge rollout of a new WiFi system in its partnership with AT&T.

Certian AT&T high speed Internet and Wi-Fi customers will now be able to use complimentary Wi-Fi access at over 7,000 Starbucks locations nationwide. For millions of AT&T customers, this means an exponential increase in their mobile connectivity.

This excerpt form the SBUX website explains the new pricing strategy:

"The many conveniences of Wi-Fi: There are a number of complimentary and paid Wi-Fi options, whether you need to check your email, download files for your next meeting, or just surf the Web in coffeehouse comfort.

Complimentary Wi-Fi for Starbucks customers When you register your Starbucks Card and use it at least once a month, you'll receive two consecutive hours a day of complimentary Wi-Fi, courtesy of AT&T. Complimentary Wi-Fi for AT&T DSL customers AT&Ts more than 12 million DSL customers already qualify for free Wi-Fi at their neighborhood Starbucks. Competitive pricing for paid Wi-Fi All other customers can receive two consecutive hours of Wi-Fi access for $3.99."

With this new strategy, Starbucks effectively ends its relationship with T-Mobile who had previosuly been the Wi-Fi provider for Starbucks through their "HotSpot" program, which was much costlier (10 dollars for a day pass).

However, in another attempt to win back the loyalty of their customers, Starbucks will not charge T-Mobile HotSpot subscribers any additional fees to connect to the AT&T network.

As a former Barista and general admirer of Starbucks, this is a great business move. Not only does this provide customers with a much more affordable/free solution to their Wi-Fi needs, but it also takes a huge step to regaining its third-place competitive advantage.

Customers will now be able to use Starbucks as an extension of their living room/office and encourages them not only to stop by and pick up their drink, but to stay and enjoy some leisure time or get some work done.

Not to mention, it will eliminate the shaky T-Mobile network that constantly went down and caused us Baristas countless headaches.

Schultz has truly gotten Starbucks back on track in the few months since he has regained the company's reigns, and I truly think that we will see a revitalized company and increased stock prices in the very near future.

For more about Starbucks, this article talks about Starbucks pulling back on its side venture of entertainment to refocus on their core competencies...another example of Schultz taking the Bux back basics.