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Why Starbucks Failed in Australia - Coggle Diagram
Why Starbucks Failed in Australia
What is the main problem identified?
Starbucks wants to develop and expand rapidly in Australia, but has not slowly integrated them into the Australian market.
Starbucks has grown too fast in the Australian market without giving Australian consumers a chance to really develop interest in the Starbucks brand.
Starbucks believes that their business model can be promoted and adapted to different environments, and there is no need for them to adapt to the Australian market.
Starbucks moved most of its stores to remote areas of Australia or remote suburbs of major Australian cities. Too accessible for most Australian consumers to create a point of differentiation, so their needs for Starbucks are no different.
Australians have too many choices when it comes to coffee. Australians are used to their coffee flavors, such as flat white or Australian macchiato.
The style of coffee in Australia is Italian, while Starbucks is American.
The Starbucks menu offers too many sugary drinks that Australians don't like.
Starbucks charges more than other local cafes in Australia.
What strategy was taken?
Being a familiar face for tourists visiting popular vacation destinations in Australia
Enter into large shopping malls
Being familiar to international students
Was the strategy effective?
No, the strategy was not effective. Because, Starbuck easily opened their branches without considering and adapting to the Australian market and environment. Their opened their store rapidly just within 8 years. They introduce themselves as quick as they can, so the Australian look them as familiar as the local coffee shop instead of branding the brand with adapting to the local culture.
What would you do differently?
Design and plan a menu that is suitable for local market and tourism market
Research into the market when entering different segment market
Do not launched too rapidly when enter a new market, start from a small market