There Are Basically No Starbucks on This Continent. Here’s What Went Wrong.

There Are Basically No Starbucks on This Continent. Here’s What Went Wrong.

CNBC, 2018

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  • Overview
  • For Beginners
  • Engaging


In 2000, Starbucks boldly entered the Australian market. It made many false assumptions and failed to conduct due diligence in the form of market research as it plowed ahead, opening store after store. In 2008, it closed two-thirds of its Australian outlets. This brief, engaging video analyzes where Starbucks erred and what it can learn from its failure. getAbstract recommends this corporate case study to students of business and to anyone attempting to export a brand. 


Starbucks boasts more than 28,000 outlets in 76 different markets around the world. But when the coffee giant entered the Australian market, success proved elusive. Starbucks opened its first Australian store  in 2000. By 2008, it had opened 87 cafés throughout Australia, but the chain stalled. Starbucks Australia recorded $105 million in losses in its first seven years. In 2008, Starbucks closed more than two-thirds of its Australian outlets.

How did the multinational get it so wrong? Starbucks tried to apply its business model, which had been successful elsewhere, without adapting it to local conditions...

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