Starbucks' Australian Experience
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Case Details:
Case Code : BSTR304
Case Length : 24 Pages
Period : 2001-2008
Pub Date : 2009
Teaching Note : Available
Organization : Starbucks Corporation
Industry : Coffee Retailing
Countries : Australia; Global
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
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At the time of its founding, Starbucks was quite different from what it is today. English teacher Jerry Baldwin (Baldwin), teacher in history Zev Siegel (Siegel), and a writer Gordon Bowker (Bowker) shared the same fascination for exotic coffee and tea. Inspired by Alfred Peet (owner of Peet's Coffee and Tea in California), a connoisseur of fine tea and coffee, the trio opened their first store in 1971.
It was a small store in Pike Place Market in Seattle, USA, and it was called Starbucks Coffee, Tea, and Spice. The name was inspired by the Moby-Dick character Starbuck who was a mate on a ship named Pequod...
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Starbucks in the Land of the Kangaroo
Entry & Expansion
Starbucks entered Australia through its wholly-owned subsidiaries Starbucks
Capital Asset Leasing Company, LLC and Starbucks Coffee Company (Australia) Pty.
Ltd. (a joint venture between Markus Hofer (Hofer) and Starbucks Coffee
International). Company owned and operated retail stores were opened in quick
succession...
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Promotion of Starbucks in Australia
The Starbucks brand was intended to be an "affordable luxury"-the
customer was offered specialty coffee in a special ambience which was
available at a premium price. In-store, Starbucks attempted to maintain
the same kind and level of experience that its customers, world-wide
enjoyed...
Strategic Retreat
With its assertive expansion strategy in Australia, according to
analysts, Starbucks had become a symbol of Americanization and
commercialization. The fact that it was available everywhere was one of
the causes behind the fall of its premium image... |
Excerpts Contd...>>
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