Starbucks and Others: The Future of Public Wi-Fi

Starbucks and Others: The future of Public Wi-Fi

Abstract

In the content of this paper you will find discussion about public access Wi-Fi or Wi-Fi hotspots. There will be specific discussions on Starbucks and their use of Wi-Fi as well as other competitors such as McDonalds. This paper will look at whether free Wi-Fi will help build brand loyalty or if it is a necessity in today's business environment.

Just about everywhere we go there is a Wi-Fi hotspot internet connection. There are many added values to the amount of wireless internet access that is available. Business travelers are no longer stuck waiting for a computer in the Business section of the hotel where they are staying, students are able to study or write papers in more comfortable environments than a dorm room The casual web surfer has access to the internet, and mobile device users are not using up their allotted amount of mobile data when connected to a Wi-Fi hotspot.

Starbucks

Starbucks was one of the first businesses to offer a Wi-Fi connection to their customers. In the beginning there were caveats to be able to use the Wi-Fi such as having to have an active Starbucks card with a minimum balance of five dollars. When Starbucks first began offering Wi-Fi to their customers, there was a two hour daily limit. Starbucks did not begin offering free unlimited Wi-Fi until July of 2010, at which point they realized that in order to maintain a competitive edge that the time limit on their Wi-Fi would need to be removed (Technology, 2013).

While free Wi-Fi access is a benefit for a company like Starbucks, it is not the amenity that will ensure customer loyalty. Starbucks coffee houses are designed to be a relaxed environment conducive to customers staying in the shop for a longer period of time. Starbucks is first and foremost a coffee house, so if their coffee of the small selection of foods offered are not of superior quality, then there is little chance that a customer would stay for an extended amount of time just to use the Wi-Fi.

Competition and Wi-Fi

Free Wi-Fi access by a competitor such as McDonalds would not be the deciding factor in where a customer chooses to procure their coffee or food. Lack of variety is one reason a customer may choose to go to a fast food restaurant rather than Starbucks. Many fast food places such as McDonalds and Burger King are now carrying a premium coffee line similar to what is available at Starbucks. While the coffee may not be of the same quality, and there may not be as many coffee choices McDonalds and Burger King have an advantage in the variety of foods offered.

Starbucks has recently begun