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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- Video created by CNBC
- Lesson Plan created by Cynthia Silva
Avinisha Tiwari
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Why did Starbucks fail in Australia and can it ever go back?
Starbucks failed in Australia as it did not take into account the coffee business in Australia, they thought of coffee as a mere product when it meant a lot more than that for the Australian consumers. Moreover, they did not change the menu to suit the tastes of the consumers rather kept it the same 'American' way. If they have a comeback, it is unlikely that the Australian consumers would be attracted as even when they left, none of them felt anything. So, it would not make any difference if they come back to Australia.
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