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Transcript of STARBUCKS AUSTRALIA
The Starbucks Story
Operations in 64 different markets
Entry into the Australian market was not successful
Struggled to compete against the strong Australian café culture
Bound to numerous Australian laws and regulations that affect all aspects of the business.
Food & Health Safety
Advertising & Labelling Requirements
Industry largely dependent on disposable income
Minimum wage increased by 3%, increasing disposable income & expenditure
"Australian cafes and coffee shops industry to continue to grow solidly over the next five years" - IBIS World.
Fair trade, equality, sustainability and green thinking are of high importance to consumers
Suburban coffee culture has grown exponentially with coffee houses offering takeaway and dine-in options
More socially accepted and suited to the health and fitness conscience
Continuous argricultural developments e.g. Coffee and Farmer Equity (C.A.F.E.) Practices
Introduction of new, innovative production and bio technologies
Improvements in communications with, and education of, supply chain members
Growing concern over carbon emissions and climate change, and its effects on the production of coffee beans in terms of:
Use of preservatives or pesticides
Introduction of policies and regulations by health authorities about caffeine production, consumption, and serving sizes
Increased Customs, Quarantine and Border Security provisions and restrictions
Sustained Competitive Advantage (VRIO)
What are Starbucks’ strategic competitive advantages?
How can these be leveraged by the Withers Group to successfully facilitate “rapid expansion” within the Australian market?
Starbuck's Resources are:
The Starbucks brand and reputation will be transferrable through expansion.
Starbucks will need to be strategically placed in advantageous locations.
Employee training programs must be of high quality
Starbucks must employ a customised business approach -
Alternative choice of coffee beans to suit Australian taste buds
Offering a relaxed and comfortable ambience and environment, with the option of in house seating with WIFI connectivity.
Assumptions that Australians would enjoy the taste of American coffee.
American business model used in Australia and failed.
Starbuck’s success in the US wasn’t because it sold coffee, but because it sold coffee culture.
Struggled to compete with existing local coffee culture.