Essay about Starbucks Failure in Australia

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Starbucks Failure in Australia

There are a number of different reasons why Starbucks failed in Australia and will be spoken of in more detail over the course of the report. Since World War II, Australians have developed a taste for coffee that many of the European migrants that moved to Australia brought with them.

Starbucks first began in 1971 its main goal was to offer a coffee experience that no other coffee shop has done before. As stated in the case study, Starbucks emphasis on customer service included eye contact and greeting each customer within 5 seconds, cleaning tables promptly and remembering the names of regular customers. Starbucks was to reinvent the sense of romance atmosphere sophistication and …show more content…

And in 2000 89% percent of Australians were aware of the of the Starbucks coffee shops, as Starbucks was on average selling twice the amount of coffee than any other coffee shops in Australia.

And in recent years and there have been a number of problems that Starbucks has had in Australia. Due to the record petrol prices and interest rates around the world, Starbucks company earnings have declined dramatically. As much of the world is having monetary problems, consumers have had to pull back from the consumption of many luxury goods. In the past two years in Australia, sales fell to 50% and the profits dropped 28%. There have been many actions taken by the owners of Starbucks to try and help to rectify the problems that it has been having. Some of these rectifications have been to shut down every store in America at the same time for 3 and ½ hours to help a train their staff to be better a customer service. A few more rectifications have been to add more food varieties into the Starbucks Stores and also the launch of Starbucks discount cards the ‘Starbucks Express’ and also providing high speed Wy-Fi connection for the consumers to use while drinking their coffee. There have been many people who have said that during the massive growth of Starbucks around the world, they begin to focus more on expansion than on customer

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