Professional Documents
Culture Documents
Case Study
Case Study
I. Time Context
II. Viewpoint:
Starbucks failed to assess the local culture of Australia. They entered a market that had
no room for them. Worse, they failed to identify that they were failing. Unfortunately,
Starbucks continued to grow their troubled business until finally disaster struck. If
Starbucks is to succeed internationally they must realize that convergence is not
applicable in all coffee markets. Starbucks must utilize a contingency approach when
entering new markets. Starbucks would be wise to conduct local market surveys and
SWOT analysis specific to each region they are trying to enter.
III. Objectives
To know what the changes that is needed for Starbucks in order to be more competitive
against local stores and to increase its chances of being successful coffee shop.
Starbucks should understand the local market needs and develop a product that
would satisfy the Australians.
Starbucks shouldn’t rely on reputation and should learn to understand someone’s
culture.
VI. Recommendation
Starbucks should learn the culture of Australian towards drinking coffee and hire
teams who specialize and experts on local customers and users and leverage
their knowledge to your advantage to succeed on your campaigns
Starbucks should adjust their beverages to Australian taste which do not prefer
sweet and it should also be a same price or cheaper compared to local coffee
shops.
VII. Conclusion:
Starbucks should have studied much more about local customs and preferences before
going in to that market. It shouldn’t have relied to their reputation which is a known coffee
shop in the American Market and other Asian countries.