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 Contd...
What Went Wrong in The Australian Brew?
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Starbucks became the 'third place' for Americans who got hooked to the unique blend of dark roasted Arabica coffee beans freshly brewed and served as an
"affordable luxury"in an ambience very similar to the Italian espresso café.
It was a new experience for the Americans who were used to the 'on-the-go' instant coffee taste. Spurred by this success, the company began its expansion drive in the Asia-Pacific Rim region.
It was yet to set foot in the European markets when it entered Australia in 2000...
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Economic Forces Push Starbucks Farther Down
In September 2008, it was reported that in the quarter ended June 2008, Australia's economy had grown at its slowest in over three years. Household consumption dropped by 0.1 percent in the same quarter, compared to a growth of 1.1 percent on an average in the last fiscal. Since 1993, this result was said to be the worst...
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Outlook
Starbucks, like most companies, faced difficulties in
the international markets that it entered. While in China and Japan it
had to compete against the well-entrenched tea-drinking tradition, in
France it was the sophisticated coffee culture which proved a challenge
for the company...
Exhibits
Exhibit I: Condensed Consolidated Unaudited Statements of Earnings/ (Loss)
of Starbucks Corporation
Exhibit II: Comparison of Planned Against Actual Company-Owned Store Openings in
the International Market |
Exhibit III: Starbucks' Retail Product Line
Exhibit IV: Starbucks' Critical Success Factors in International Operations
Exhibit V: Comparison of Store Formats Based on Numbers as of FY End 2007
Exhibit VI: Australia & Coffee
Exhibit VII: List of 61 Closure Locations in Australia in 2008
Exhibit VIII: The Starbucks Logo
Exhibit IX: Coffee Lingo in Australia
Exhibit X: Indicative Region-Specific Population Density in Australia
Exhibit XI: List of 23 Post-Closure Locations in Australia
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