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Why Kangaroos Are Not Fun of Starbucks

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10 views

Why Kangaroos Are Not Fun of Starbucks

research

Uploaded by

oG PRO kInG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Why did camels and rabbits proliferate in

Australia while Starbucks did not?

Coffee, one of the most popular beverages globally, has a rich history—from its origins as a
spiritual drink among Sufis in Yemen to becoming an elite beverage in Turkey and a daily
necessity for many. This widespread appeal attracted entrepreneurs due to its vast market
potential. As the coffee industry evolved, especially with the effects of globalization and
advancements in marketing, chain businesses like Starbucks, Blue Bottle, and Caribou Coffee
emerged as key players. Among these, Starbucks stood out as a pioneer, founded by Jerry
Baldwin, Zev Siegl, and Gordon Bowker in Seattle, Washington, USA, on March 30, 1971. Howard
Schultz later joined the company and played a pivotal role in its global expansion.

Despite Starbucks's remarkable success worldwide, it encountered challenges in specific


markets, including Australia. In Australia, known for its vibrant coffee culture and high standards
for espresso-based drinks, Starbucks faced strong competition from local cafes and roasteries.
Australian consumers favored freshly brewed coffee with a focus on quality and authenticity,
which differed from Starbucks' standardized menu offerings and operational model. Moreover,
Australia's price-sensitive market posed a challenge for Starbucks, as its premium pricing
strategy did not align with local expectations.

To have achieved better results in Australia, Starbucks could have benefited from a more
localized strategy tailored to the unique preferences and culture of Australian coffee
enthusiasts. This could have included offering a wider range of specialty beverages suited to
local tastes, such as flat whites, long blacks, and piccolos, alongside Starbucks' traditional menu
items. Collaborating with local suppliers and showcasing Australian coffee roasters could have
enhanced Starbucks' appeal and credibility among consumers seeking authentic coffee
experiences.

Market insights play a crucial role in expanding internationally. Understanding the local coffee
culture, consumer preferences, and competitive landscape is essential for success. In Australia,
Starbucks could have conducted comprehensive market research to gain insights into the
dominance of independent cafes, the popularity of specific coffee styles, and pricing
expectations. This would have enabled Starbucks to tailor its offerings and pricing strategies
accordingly, positioning itself more effectively in the market.

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