Case Study Title How to breakthrough on Australian Coffee Market Case Study I. Time Context Starbucks entry to Australian Coffee Market is July 200 Starbucks grew to nearly 90 locations on Australia by 2008 Starbucks closed more than 70% of its store leaving 23 Starbucks store in 2008. II. Viewpoint: Starbucks failed to assess the local culture of Australia. They entered a market that had no room for them. Worse, they failed to identify that they were failing. Unfortunately, Starbucks continued to grow their troubled business until finally disaster struck. If Starbucks is to succeed internationally they must realize that convergence is not applicable in all coffee markets. Starbucks must utilize a contingency approach when entering new markets. Starbucks would be wise to conduct local market surveys and SWOT analysis specific to each region they are trying to enter. III. Objectives To know what the changes that is needed for Starbucks in order to be more competitive against local stores and to increase its chances of being successful coffee shop. IV. Areas of Consideration: V. Alternative Courses of Action: VI. Australian sophisticated coffee culture. Price of coffees in local coffee shops which is cheaper compared to their coffee. Starbucks should hire more passionate workforce specially the barista. Starbucks should understand the local market needs and develop a product that would satisfy the Australians. Starbucks shouldn’t rely on reputation and should learn to understand someone’s culture. Recommendation Starbucks should learn the culture of Australian towards drinking coffee and hire teams who specialize and experts on local customers and users and leverage their knowledge to your advantage to succeed on your campaigns Starbucks should adjust their beverages to Australian taste which do not prefer sweet and it should also be a same price or cheaper compared to local coffee shops. VII. Conclusion: Starbucks should have studied much more about local customs and preferences before going in to that market. It shouldn’t have relied to their reputation which is a known coffee shop in the American Market and other Asian countries.
