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Why Starbucks failed in Australia

Lesson created by Cynthia Silva using TED-Ed's lesson creatorVideo from CNBC YouTube channel

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Starbucks can be found all over the world, from Shanghai to Guantanamo Bay. But there is one continent that was uninterested in the coffee giant. Australians largely rejected Starbucks' attempted takeover, which led to an embarrassing retreat for the brand. CNBC explains what went wrong.

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Avatar for Cynthia Silva
Lesson creator

Do you think Starbucks could be successful if they tried expanding into Australia again? Why or why not?

Comments are closed on this discussion.

Avatar for Tejaswini V M
Lesson in progress

Yes, it is possible for Starbucks to be successful in Australia. Considering the fact that they have experience in the market and have established strong footholds in other regions globally, they will have adequate data to analyze and create a successful and sustainable business model in Australia.


Avatar for Олександр Рябуха
Lesson in progress

I think that Starbucks could be successful in Australia after a second try. They already have some experience of successful penetration into markets with great coffee culture, like Italy. Also, Starbucks is really thriving brand that can rely on globalization trends. For example, in Australia can be a bigger amount of people that like American consumer culture and they will love Starbucks


Avatar for Eduardo Nagassaki
Lesson in progress

If Starbucks wants to try to build an empire in Australia again they need to open some markets in the big cities first, after that it can try to expand to small towns, also they need to pay attention to how Australians will receive Starbucks coffee.


Avatar for Garv Goyal
Lesson completed

I think that Starbucks has a chance in Australia if they learn from their mistakes. Australians might give them a chance if Starbucks makes a suitable menu for Australians and doesn't open too rapidly and adapt their. Starbucks' reputation there will be something holding them down.


Avatar for Dong Hyuk An
Lesson completed

They would if they developed slowly understanding of Australian culture. But they wouldn't if they just rushed again.


Avatar for Bao Dang
Lesson completed

in my opinion, Starbucks certainly successful in Australia because they was failed in past so now i have lesson for it and they was learned a lot of about it. From that they research about coffee industry in Australia and they know Australian need what in coffee, base on it they will come back expand again. it will more successful.


Avatar for Kierstin Ford
Lesson in progress

I don't think it would be successful in reattempting to open in Australia because the people already know what they serve and already developed a natural dislike to Starbucks coffee.


Avatar for 서현 허
Lesson completed

Starbucks could be successful in Australia if they admit that they failed in Australia and realize why they failed in Australia.


Avatar for Chandler Claire
Lesson completed

100%. they learned from their mistakes and know how to go about establishing themselves again. could be difficult due to covid though.


Avatar for Leilani St. Pierre
Lesson in progress

If they go slowly, understand the people in Australia, then they could possibly expand in Australia once again.

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