Starbucks Failure in Australia Essay

Words: 2988
Pages: 12
Open Document
Starbucks Failure in Australia

Introduction
There are a number of different reasons why Starbucks failed in Australia and will be spoken of in more detail over the course of the report. Since World War II, Australians have developed a taste for coffee that many of the European migrants that moved to Australia brought with them.

Starbucks first began in 1971 its main goal was to offer a coffee experience that no other coffee shop has done before. As stated in the case study, Starbucks emphasis on customer service included eye contact and greeting each customer within 5 seconds, cleaning tables promptly and remembering the names of regular customers. Starbucks was to reinvent the sense of romance atmosphere sophistication and …show more content…
Service Marketing Issues
As Stated previously, one of the main reasons why Starbucks failed in Australia is due to the fact that they lost sight of their customer orientated focus. This has a lot to do with Starbucks Service & Marketing issues. In 2008, Starbucks close down every store in the US simultaneously for three and half hours for staff training, this unfortunately was too late for Australia. On July 29, 2008 Starbucks announced to the public that it would be closing off 61 of its 84 Australian shops or 73% by August 2008. With this massive loss of Starbucks Stores in ausralia not only did it cost a Starbucks Company, but it also costs Australian citizens 685 jobs. In 2008 was the time when many became aware of Starbucks decline in business due to the store shut downs, but what many didn’t see was that by 2007 Starbucks was already hemorrhaging business. Over the seven years Starbucks was operating in Australia they accumulated losses of around $143 million.

One of the main reasons why Starbucks was able to hold on for the eight years that they were in Australia was because of its US parent companies support. Even though Starbucks close down many of its shops, they still kept over and 23 stores around Sydney Melbourne and Brisbane. However many have passed them important question that is 23 stores enough to support itself in the long-term
Show More

Related Documents: Starbucks Failure in Australia Essay

porters 5 model Essay

competitors is very high, and the numbers of branded coffee shops have been increasing in the Australia . Copied version but might help Well conceived market research involving both primary and secondary data, including qualitative and quantitative approaches, would have uncovered the extent of the ‘coffee culture’ that existed in 2000 when Starbucks entered the Australian market. It seems inconceivable that Starbucks management, or at least its Australian representatives, were not sufficiently apprised…

Words 557 - Pages 3

Strengths Of Globalization

country – the country where the headquarter is situated in – as the most outstanding and eminent (Pearson Australia 2014). Thus, advocates of this belief carry out nothing other than their original manners no matter how the situation may change or which country they operate in. Likewise, power and technology is only placed at the hand of personnel native to the home country. According to Pearson Australia (2014), parochialism – ground for the ethnocentric attitude, is a major hindrance for any organizations…

Words 1916 - Pages 8

Strategic Alliances Essay

Useful Resources for Strategic Alliances THE FIVE FACTORS OF A STRATEGIC ALLIANCE by Jason Wakeam Strategy | May / June 2003 Share on emailEmailShare on twitterShare on TwitterShare on facebookPost to FacebookShare on linkedinShare on LinkedInShare on deliciousSave to DeliciousShare on instapaperSave to Instapaper “Strategic” may be one of the most over-used words in business today. This observation is especially valid in the world of alliances, where managers must distinguish between those alliances…

Words 6229 - Pages 25

Essay about Strategy Management

put restrictions on no. of hypermarket stores =>A motivation for international expansion for new opportunities • Intl. expansion via “company-owned outlet”  Choice of countries - _________________ - _______________ • Great success but failure in some countries • US, UK (due to economic transitions, different consumer preferences ) • Asian countries (Japan, Korea) (difficulties in finding local partnership) • Changes in market structure and competition • E-commerce, deep discount merchants…

Words 3646 - Pages 15

Organizational Behavior Research Paper

Organizational Behavior BUS 502 Md. Lutfar Rahman Faculty College of Business Administration IUBAT—International University of Business Agriculture and Technology Text • Organizational Behavior 13th Edition • Author: Stephen P. Robbins Chapter ONE What is Organizational Behavior? Organizational Behavior • Organizational behavior (often abbreviated OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose…

Words 7733 - Pages 31

Research Paper

e: eurinfo@datamonitor.com Datamonitor Middle East and North Africa Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com China - Carbonated Soft Drinks © Datamonitor. This profile is a licensed product and is not to be photocopied 0099 - 0028 - 2009 Page 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY…

Words 8414 - Pages 34

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960