Starbucks, An American Multinational Corporation Global Vision

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Introduction: In today’s business climate, where there is a significant influence on globalisation and cross cultural business practices; it is paramount for companies in order to achieve business success on a global scale, they must devise a global strategy where they conduct research about the country by being familiar of the cultural differences, make specific modifications to their marketing mix (i.e. 4 P’s – product, price, promotion, place). This report will analyse the case of Starbucks, an American multinational corporation global vision expanding into ventures in Japan and Australia, what were the positive and negative implications of entering these markets and what potential solutions they can implement in order to achieve a…show more content…
Starbucks simply overestimated the “Aussie market” in respects differentiation, and the perceived value of their supplementary service (P. Patterson & J. Scott 2008). Patterson further exemplifies Starbucks failures to breach the Australian market as they ignored the golden rules of global marketing (i.e. they expanded their operation too quickly and forced their product to unwilling consumers. Moreover, Starbucks in Australia was interested in 2000, where there already was a well-established coffee market with established local competition (e.g. Gloria Jeans, Wild Bean Café). However, the most crucial mistake Starbucks made was they failed to communicate the brand; and consequently, their business model was unsustainable. Starbucks are not in touch with its Australian consumers, due to lack of research concerning the ‘coffee culture’, but another fundamental error they made when entering the Australian market was that they didn’t make many modifications in the marketing mix in relations to the 4 p’s. In regards to product modifications they were very few changes that would cater to Australian consumers and the coffee was heavily americanised. Consumers basically viewed their products identical or less inferior to a latte, or espresso from a local suburban barista. Particularly in Australia, coffee is seen as a ‘gourmet product’, while Starbucks coffee has been degraded the Australian consumers as “a watered down

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