Product details

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Abstract

The global coffee behemoth, Starbucks Corporation (Starbucks) had well established coffee chain business across the world. By 2010, Starbucks had launched more than 15,000 stores in 44 countries. The company had successfully introduced European coffee culture in most of the markets around the world. So, it came as a huge shock to analysts when the company failed massively in one of the biggest coffee markets in the world, Australia. Starbucks entered the Australian market in 2000 and grew rapidly. But, during such growth momentum, the company failed to recognise and give opportunity to the Australian consumers to develop a taste for the Starbucks. Australia already had a strong coffee culture which was unique and well established. The tough operating environment ultimately resulted into hefty losses. By the end of 2007, the accumulated losses of Starbucks in Australian market touched USD105 million. In order to cut costs, in 2008, the company shut down 61 stores across Australia and sacked 700 employees. In order to turnaround its fortune in the country, in 2014, one of the richest families in Australia, 'the Withers' acquired the rights to operate Starbucks' remaining 24 stores in the country. Meanwhile, the Australian coffee market showed promising future growth. It was expected to hit USD6 billion in total revenues by 2018. Seeing such lucrativeness, Starbuck was not ready to give up on the Australian market and was slowing opening new stores since the 2008 turmoil under its new owner. But then, there was a huge challenge of satiating the very high standards of Australian coffee culture. Would Starbucks stage a successful comeback in its second inning in Australia with new approach and renewed focus?
Location:
Industry:
Other setting(s):
2018

About

Abstract

The global coffee behemoth, Starbucks Corporation (Starbucks) had well established coffee chain business across the world. By 2010, Starbucks had launched more than 15,000 stores in 44 countries. The company had successfully introduced European coffee culture in most of the markets around the world. So, it came as a huge shock to analysts when the company failed massively in one of the biggest coffee markets in the world, Australia. Starbucks entered the Australian market in 2000 and grew rapidly. But, during such growth momentum, the company failed to recognise and give opportunity to the Australian consumers to develop a taste for the Starbucks. Australia already had a strong coffee culture which was unique and well established. The tough operating environment ultimately resulted into hefty losses. By the end of 2007, the accumulated losses of Starbucks in Australian market touched USD105 million. In order to cut costs, in 2008, the company shut down 61 stores across Australia and sacked 700 employees. In order to turnaround its fortune in the country, in 2014, one of the richest families in Australia, 'the Withers' acquired the rights to operate Starbucks' remaining 24 stores in the country. Meanwhile, the Australian coffee market showed promising future growth. It was expected to hit USD6 billion in total revenues by 2018. Seeing such lucrativeness, Starbuck was not ready to give up on the Australian market and was slowing opening new stores since the 2008 turmoil under its new owner. But then, there was a huge challenge of satiating the very high standards of Australian coffee culture. Would Starbucks stage a successful comeback in its second inning in Australia with new approach and renewed focus?

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Location:
Industry:
Other setting(s):
2018

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