Why Was the Starbucks Business Model Not Successful When They Entered the Australian Market?

Why was the Starbucks business model not successful when they entered the Australian Market?

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Name: Fernanda Chavez

1. CONCEPT

Service Brand, service quality, global branding, international business, coffee, Starbucks.

1. QUESTION

Why was the Starbucks business model not successful when they entered the Australian Market?

1. HYPOTHESIS

Starbucks did not develop a correct market research of Australian market.

1. INTRODUCTION

Starbucks is the world's largest international coffee chain with approximately 17,800 stores in 50 countries. Starbucks sells processed coffee, hot drinks, and other drinks, as well as snacks and some other products such as cups, thermos and coffee beans. It also offers books, music CDs, and movies. The first Starbucks store was in the United States, Washington in 1971, the business was mainly oriented to the sale of grains and coffee machines. In 1987 Starbucks was bought by Howard Schultz who decides to change the business model and focus on the sale of espresso coffee and other products. Two years later, Starbucks opened its first stores on the outskirts of Seattle and Chicago and continued to expand throughout the American country by changing people's idea that coffee should only be prepared at home. Starbucks stores are decorated to create a place between work and home so customers just want to be there. In 1996 Starbucks began its international expansion by opening the first store in Tokyo, after market research and analysis of consumer tastes and preferences, the products were adapted to this new market by offering green tea and coffee with green tea extract, The stores were also decorated to this type of oriental culture. With its success in Tokyo, Starbucks began its expansion in the countries of Europe, Central America and South America obtaining excellent results of financial flow and volumes of sales. In 2008, it surprised news of the closure of nearly three-quarters of the stores located in Australia resulting in the dismissal of 700 workers. According to what was mentioned, the proposal of the essay is to study why was Starbucks business model not successful when they entered the Australian market?

1. BODY

The theories as to why Starbucks is unsuccessful in Australia are many, it is likely that the growth of competitors is the central problem and the fact that coffee is no longer considered a luxury item by many Australians, but rather a part Affordable from your daily routine. One of the factors that cause substantial evidence to cause the disappearance of Starbucks from the Australian