Why Starbucks Failed in Australia

C1 – Advanced

It’s easy to find a Starbucks cafe almost anywhere in the world. However, in Australia, there aren’t that many. That’s because in 2008, the company closed more than 70 percent of its under-performing locations, leaving only 23 Starbucks stores throughout the entire continent. Starbucks has failed to make an impression in the Australian marketplace but where did it go wrong?

Watch the video and be able to answer the questions that follow:

Discussion Questions:

  1. According to the video, why did Starbucks fail in Australia?
  2. Do you enjoy Starbucks coffee? How often do you have it?
  3. Is Starbucks popular in your country?
  4. What do you think made Starbucks popular all over the world?

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2 replies on “Why Starbucks Failed in Australia”

According to the video, why did Starbucks fail in Australia?
It seems that the main reason of faiure in Australia was its rapid growth there so they couldn’t give time to the consumer to develop an apetite of the product they sell, but actually the main reason is their culture, Australian people take their coffee as a social act, which collides with the Starbucks’ concept of taking your coffee fast and/or alone while you’re working. Also their high prices don’t help consumer’s willingness of purchasing the product.

Do you enjoy Starbucks coffee? How often do you have it?
It’s been several years since my last coffee, so I’m not really neither into starbucks nor coffee in general. However, if I were a coffee consumer I think that I wouldn’t have a Starbucks coffee because I guess its way of selling the product didn’t reach me as a consumer.

Is Starbucks popular in your country?
Yes, it’s kind of popular but I guess that Spanish people are more social than other cultures, although we’re open to try other products and different ways of life.

What do you think made Starbucks popular all over the world?
Whereas the concept of consuming fast a product was introduced few decades ago by fast food franchises, Starbucks introduced the concept of luxury and exclusive coffee, which was new until then. It was a way of letting your friends and acquaintances know how high were your lifestyle, but in fact it’s all about of showing off.

Good efforts on your answers. Keep at it!

See how you can improve this sentence with more accurate word choices:

Also their high prices don’t help consumer’s willingness of purchasing the product.

Also, their high prices don’t help in making consumers more willing to purchase their products.

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