Baoyi Chen’s Blog

(Picture taken from: http://sites.davidson.edu/anthro/global/2012/03/18/starbucks-entering-popular-culture/)

Starbucks is everywhere. Saying that by living in a country that Starbucks is to be seen at each block of a street. But in Australia, it does not seem so much like that. Starbucks entered the Australian market in 2000, and expand massively in the following years, however, it has caused Starbucks to lose approximately 143 million dollars and more than 60 stores closing promptly.

This is then to be investigated, and released that Starbucks has been “too proud” of its brand. In fact, before Starbucks entered the Australian market, local coffee shop like Gloria Jean had been existed and popular for the whole time, and Starbucks, unfortunately having selling their product at a higher price than its competitors. 

Starbucks, owns 23,000 stores over the world, at the end failed in Australia. It can be concluded that Starbucks might be overestimating itself among all other competitors. As a coffee shop, its product might be different with others, but at the end of the day, Starbucks is not much a necessity for consumers. Furthermore, Australian have the sense of supporting its local community, being a little bit exclusive. The failure of Starbucks in Australia hopefully gives Starbucks an alarm of not being arrogant and too confident of its products.

Reference:

Lutz, Ashley. “Starbucks Has Failed In Australia.” Business Insider. Business Insider, Inc, 28 May 2014. Web. 20 Oct. 2014. <http://www.businessinsider.com/starbucks-closing-stores-in-australia-2014-5>.