Starbucks in Australia

The story of Starbucks Failing in Australia

The best way to remember a story is to remember the main points and then tell it in your own words.

The Starbucks in Australia is good story to use anytime you need to open peoples’ minds to cultural change or answering the clients needs. It also helps people understand the power of culture to shape a consumer’s mind.

  • In Korea we have over 1,000 Starbucks, Over the past 20 years ago, there has been one new Starbucks opened every week. But this isn’t true everywhere.
  • In Australia, there are over 10,000 coffee shops, but only 22 Starbucks.
  • Person for person Australians drink on average 30% more coffee than Koreans.
  • Starbucks first opened in Australia in 2000, the same year as the Sydney Olympics.
  • In 8 months opened 80 stores.
  • After the Olympics, Starbucks learned that Australian’s hated Starbucks.
  • What they found was that Australian’s truly value a personal coffee experience.
  • Australians love to boast about ‘their guy’s secret twist on espresso.’ “
  • Australia’s egalitarian culture means that you should know the name of “your” barista.
  • Plus – Australia’s first café owners taught Aussies to see their offering as real coffee.
  • The Italian, and Greek immigrants brought their sweet, slightly acidic and best drunk without milk coffee.
  • There is no room on the Aussie palate for Frappuccino’s and pumpkin lattes.
  • And as for the Starbucks layout “Why would you want to sit around a pretend lounge room drinking a weak and expensive coffee?”
  • In 2016 Starbucks sold the last 22 stores to Seven-Eleven for a $143 million loss.

Business Point (Use Case) Suggestions:

  • Unless your solution matches your customers needs, it doesn’t matter about the quality.
  • Knowing your customers’ needs is the beginning of everything.
  • You can’t make them like you.
  • Even if they look the same, they might not be the same.
  • Culture is everything

Business Point: Nike says – It’s a perfect example… of how we find innovation, where we look for it, how it can come from the most mundane or unlikely sources. That’s an important message… we can find inspiration in literally anything.”

P.S. In August 2010, Nike executives received a stunning email from the Bowerman family. “It said, ‘we found, what we believe, is the original waffle iron.’ Bowerman’s son, Tom, lived on the family property in Coburg and decided to expand the carport. Digging alongside the house, he came across the scrapheap of his father’s experiments. There were crudely cobbled-together shoes, old prototype metal plates, cracking rubber soles, peeling molds, and a rusty old waffle iron.


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