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
Cynthia Silva
Princeton, New Jersey, United States
Lesson creator
Why is it important to understand consumer behavior, especially when a business expands internationally?
Comments are closed on this discussion.
Gan Viking
Lesson completed
To offer succesfully a product or a service the brands need to know and understand not only the behavior of the people, they need to know the culture to expand internationally. Because the some products or services will not work in some countries like it works in other. That's the lesson who Starbucks painfully learned due it's excesfull trust to open too many shop at the beggining without knowing clearly the new consumers of that country.
Akshada Ingale
Lesson in progress
When business expands internationally the international customers startingly don't trust us and trust is very very important in business as customers is God and the business rungs because there are customers who have trust in US and we have to take the responsibility that we will do not break their trust and we will make the trustworthy product . If we understand the customers behaviour you will get to know that how we are going to start our business how we are going to run the business according to them, once we understand their behave your once we get their trust it is very easy to make or it is very easy to expand our business in the country
Tejaswini V M
Lesson in progress
"Customer is your God." There is a reason why there is so much emphasis on these golden words. A business can have a brilliant product, but if the business is unable to connect with the customer, empathize with the customer, it's going to be bleeding losses. Particularly in a situation where the commodity is not part of the culture and is overly priced. It's important to understand what the customer really needs and cater to their needs. After all, if there aren't any customers, the business cannot sustain. This is where market research plays an important role. It helps understand the various players in the market, the culture, the preferences of the customers, their interaction with the market. Businesses, no matter how big or small, should be able to make flexible adjustments according to the customers and market.
Po Chamrong
Lesson completed
Understand the consumer behavior is one of the crucial aspect that the business need to pay attention to. Every country has different culture, test, tradition and lifestyle so more. So knowing the consumer behavior will be benefit to business expand internally, to launch a product or service to fit their interest and need. Moreover, it will reduce the risk of failure.
Ricardo Caldeira
Lesson completed
Consumer is everything, the internationally of a company is on the biggest challengers for the company, because the culture, the consume, the economy ect....
It´s mandatory a good advice from the some company who helps them to take this big step
Marco Alquisira
Lesson completed
Because every country has a different culture or behavior and if you don't study how the market is in that country and place many stores, you don't give time for them to know your product.
Apex Lim
Lesson completed
Understanding consumer behavior in international market, they will face cultural differences, economic conditions, social trends, legal and regulatory and competitions. So, businesses can develop effective marketing and sales strategies for understanding their consumer behavior.
Anna Wong
Lesson completed
Understanding consumer behavior is the key of building a successful international business. There are diverse cultures in every country, for example in China, people like eating spicy food. A company should know the background of the country, understand the behaviour of the customers, and the newest trend in that country. Then the company can earn more money as much as possible.
zahra amzil
Lesson completed
in my opinion the diversity of culture in every country influence the behavior of the consumers so can't open a restaurant or coffee or any other business without understand the culture before
Ivi Wan
Lesson completed
The key point of business expands is the target market, which is consist of some factor and the leading one is consumer behavior, including how much they would like to pay and what they prefer. And the local culture.