Back to the mid 2008, starbucks announced that they were closing 75% of its store in Australia (Patterson, Scott & Uncles, 2010). It was a huge and unexpected closure to this big coffee company, lots of media and Australian rated Starbucks as “failure” in Australia. But situation was totally different from Asia market, Starbucks reached their great success in Asia. As the world’s largest coffee company, Starbucks now faces lots of judgment because of the store’s closure in Australia. Taking a lot factors into account, as a loyal customer, I bielieve that despite its failures, Starbucks is a successful company.
The failure in Australia seems strange, but after lots of researches, I can say it was all because of Starbucks’ wrong strategies. Australia is already a mature market for coffee. Back to the World War II, coffee already being part of Australians’ life, they had their own taste of coffee, but it was not the American style coffee Starbucks sold. Australians love coffee, they can walk a long distance for their favorite coffee. This is not the main reason that caused Starbucks’ failure. In Australia, Starbucks didn’t really advertise their brand. Starbucks expected they would be successful in Australia without any efforts. Not a lot people know this brand or like their flavor in Australia, so they have no reason to give up their favorite coffee shop and buy a coffee in Starbucks. Besides, every cup of coffee was over-priced for Australians, so they were not willing to afford that much for a cup of coffee. Back to America, the financial crisis hit coffee sales at Starbucks in 2008. “Starbucks customers may have less money for discretionary purchases as a result of job losses, foreclosures, bankruptcies, reduced access to credit and sharply falling home prices.” said the company (Quinn, 2008). Although Starbucks thought the reason was because of customers, the reason was actually because of Starbucks’ over-priced coffee.
In 1996, when...
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