SWOT Based Analysis of the Impact of Prepayment Business Model on Brands and Consumers-Starbucks as an Example

Abstract

The prepayment business model means that customers give retailers credit first, make payments in advance, and put off using the goods or services. This business strategy acquires clients by means of discounts on prepaid consumer cards, which is advantageous to the firms to withdraw cash and lock in customers. The limited edition prepayment physical card may be collaboratively customized with a variety of artistic and cultural works, promotional campaigns can be jointly launched using the prepayment business model.However, because this business model uses credit to advance product or service fees, consumers are in a weak position after payment and are vulnerable to infringement and fraud by bad businesses, so the reputation of this business model is polarized. Businesses typically offer significant discounts on prepaid consumption. In order to analyze the SWOT technique and the good and negative effects of the prepayment business model on enterprises, this article will use Starbucks as an example. According to the report, prepayment business models are used by retailers with solid financial standing and excellent company credit to build customer loyalty, secure a steady cash flow, and maintain a deposit pool. Under this consumption model, consumers might profit from the discount.