Industry Engagement: Story of Starbucks in Australia

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"Industry Engagement" Introduction The story of Starbucks in Australia is a helpful lesson for everyone in business. It is considered a tale of a business that was seeking world domination in its area that somehow walked into a new market deprived of first testing the waters. What went wrong for the business down under has been analyzed in a lot of research by a lot of experts in that area. When Starbucks had come onto the scene of the Australian market in 2000, it was certainly one of the biggest coffee chains that were worldwide, opening up one new store each day anywhere in the world, notes Patterson. Its achievement in the US, which had not up to that time liked a strong society that was coffee-drinking, had provided the brand great sureness to come in other markets counting China(1996) and Japan(1998). The corporation now has some where around 15,000 stores in 44 lands. Nonetheless in mid-2008, Starbucks' organization proclaimed that it would have to start closing 61 of its 84 Australian stores (Clark, G. ,2000). The closings all had taken place quickly in one month. Fatalities were huge, counting 685 jobs and a$143 million. Just 23 Australian stores were left open to operate in major locations. What went so wrong? The Downturn of STARBUCKS Australia Expert Patterson can classify numerous major problematic areas that, in mixture, produced the weakening of Starbucks in Australia. They started with the brand miscalculating its points of differences, also as the

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