Starbucks Internationalization in Recent Years

2314 WordsApr 28, 201110 Pages
With the first coffee shop opened in Sydney CBD, Starbucks entered into Australian market in July of 2000 and then expanded rapidly to 85 coffee shops in the following years. However, in August of 2008, Starbucks Coffee Company Australia announced to shut down more than 60 of its 85 coffee shops and to date it has scaled down to 22 opened in Sydney, Brisbane, the Gold Coast, the Sunshine Coast and Melbourne (Starbucks 2010). This writing will focus on the analysis on the attributes of Starbucks’ products and marketing, and identify the opportunities and threats facing the Starbucks Australia. The second part of the analysis also draws attention to the changes in social economy, competitors’ move and the main trends in the hot drink…show more content…
What customers need is consistent quality services, which is discovered in the report by Chen and Hu (2010) that if customers feel confident that they can have a consistent quality consumption experience each time they come, they tend to choose the same coffee shop to enjoy their coffee. And such favorable attitude towards the service they have received could evolve into customer loyalty, since the essence of customer loyalty is, as Barnes (2001) depicts, “all about how you make them feel”, vice versa. Customer loyalty may result in consistent purchasing behavior of the brand over time. Therefore, it could be concluded that the all-round quality service performed by staff with high consistency could be the competitive advantage of Starbucks, which can make it special and achieve long run sustainability in Australian market. In light of this finding, Starbucks Australia should devote more efforts to human resources management. More specifically, a series of human resource practice could be designed and implemented to strategically improve employees’ competency and working attitude. For example, staff training could help them be more competent to perform all tasks involved up to standards and with high consistency and staff motivation could boost morale and let them know what is expected of them in a quite specific way. Both staff training and motivation could increase employees’ satisfaction to the extent that they are willing to exert effort to perform the
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