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Case Study on the Failure of Starbucks in Australia

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Case study on the failure of Starbucks in Australia
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History of Starbucks
Starbucks is the largest coffee chain operator in the world. Founded in North America in 1971, Starbucks took a great leap in its growth in 1992 by having 140 stores with a growing store count of an extra of 40-60 percent a year. It has grown further to command the largest share in the international coffee market having penetrated in 44 countries with more than 1500 stores. In the year 200, Starbucks would open a new store somewhere in the world every single day. It has its largest market share is in North America serving about 50 million people a week, followed by markets in the Asia-Pacific, Europe and Latin America (Simon, Bryant 320).
Marketing strategies
Starbucks managed to achieve its success by employing several major marketing strategies and for these reasons they had remarkable growth rates and had been known to have been ‘taking over the world’. Howard Schultz, the CEO in 1997 made the famous statement that Starbucks was indeed not in ‘the coffee serving business serving people but the people business serving coffee,’ a customer-oriented brand . Starbucks from the start made customer service their top priority, this policy dictating that the customer be treated with utmost personal care such as making eye contact, greeting each customer within five seconds, remembering each customer’s names and responding to customer queries promptly. They also made their cafés to be social hubs by creating the perfect ambience with comfortable chairs and good music (March 15, 2007). Their stores are conveniently placed to fit in their customers’ daily lifestyle. Visiting Starbucks has been described more as an experience which every person would want to identify with rather than a typical any ordinary coffee taking routine.
Failure in Australia
Despite of…...

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