Starbucks In Australia Essay

(3a): What trade-offs has Starbucks made? What different activity choices has it made from its rivals?

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Like it was with McDonald’s when it first appeared in Sarajevo, there was initial appeal and hype about Starbucks’ appearance in Australia. However, after trying their products, many customers quickly realized that they this ‘unique experience’ that Starbucks promised them, is not much different than the one offered by other cafés, like Gloria Jean’s or Coffee Club. To make things worse, the quality of Starbucks coffee has declined over the years. Therefore, they were harshly criticized by the Australian community, and their coffee was described as ‘watered down product’, ‘gimmicky’ and consisting of ‘buckets of milk’.

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”

With little to no previous research done on the Australian coffee culture, uneducated international chain management and the trying takeover of the Australian coffee industry Starbucks has seen the downfall in a large number of its Australian stores. With Starbucks doing little to no research before opening up its Australian stores, it stuck with its ‘American’ style coffeehouse and relied on its worldwide reputation to hold it a-float. When opening its Australian stores locals had rather go down the road for the local taste, rather than the foreign one. Starbuck’s inability and unwillingness to change its taste backfired and aided towards the stores downfall. By changing its taste to a local one, Starbucks could have flourished in the Australian

The extraordinary success Starbucks experienced during the early 1990s resulted from Howard Schultz’s passion and vision to create a coffee culture in the United States similar to the coffee culture he experienced while traveling to Italy. Schultz’s vision of the Starbucks brand evolved around providing a quality product while delivering exceptional customer service in an inviting atmosphere. Starbucks’ success can be attributable to the following factors:

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Starbucks, the coffee brand in North America failed to meet the customer expectations and deliver satisfaction which leaded to losing customer

Its primary objective was, simply put, to become the “most recognized and respected brand in the world.” This objective required most of the

With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.

But in a space of a month, coffee chain Starbucks went from ubiquity to near obscurity in Australia. Its decline meant significant losses for the company and put 700 staff out of work. Analysis of what went wrong, shows that the company with ambitions for global domination made fundamental mistakes such as trying to be all things to all people and charging a premium for a product that did not meet customer expectations.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.