Starbucks in the Australian Market

Starbucks is an American coffee company based in Seattle, founded in 1971. Starbucks uses the mermaids on both sides as its symbol, the reason behind it, according to Greek myths, the mermaids on both sides are used to tempt sailors outside the ship, it is dying Today Starbucks is one of the world's largest cafe business. They offer high quality coffee, pastries and snacks. Regardless of the price, customers are still willing to pay for their quality.

In 2008, Starbucks could not enter the Australian market because its business system and network made it impossible to compete with local high street cafes, not consistent with local culture, ideas and values ​​(Muqbil, 2008). Meanwhile, Thompson and Strickland (1999) stated that Starbucks' strategy is to purchase licenses from a host country's reputable retailer and to sell goods at hotels, grocery stores, universities and other channels It pointed out. For example, when entering the Kuwait market, Starbucks initially signed a license agreement with MH Alshaya with extensive experience in food retailing.

Discussion In the middle of 2008, Starbucks announced that it will close 75% of Australia stores (Patterson, Scott & Uncles, 2010). For this large coffee company this is a very big and unexpected closure and many media and Australians think Starbucks is "failure" in Australia. However, the situation is quite different from the Asian market, Starbucks has been a big success in Asia. Starbucks, the world's largest coffee company, is currently facing many decisions, as stores are closed in Australia.

According to the BBC, Starbucks attempted to expand to Australia in 2000, but 61 Australia bases were closed by 2008, resulting in a loss of $ 143 million. Starbucks failed in Australia because the company did not conduct a thorough investigation of the people living there. Australians felt that the coffee was too hot to be hot, but Starbucks did not adjust the product, but closed most of the shops.