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How did the global financial crisis of 2008 affect Starbucks' strategy in Australia?
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In 2008, Starbucks closed 61 stores in Australia as part of a global retrenchment strategy for underperforming stores.
How does the current strategy of Starbucks in Australia differ from its initial approach?
Starbucks is now focusing on locations in tourist-heavy areas, leveraging brand recognition among tourists, rather than targeting local consumers.
How did local consumers react to Starbucks' initial withdrawal from Australia in 2008?
Local consumers showed little concern for Starbucks' exit in 2008.
Describe the market performance of Starbucks in Australia by 2018.
By 2018, Starbucks was focusing on operating in strategic tourist locations after previously having to close the majority of their stores due to initial over-expansion failures.
Which cultural influences contributed to Australia's strong local cafe culture?
Italian and Greek immigrants introduced Australians to espresso, significantly shaping the local cafe culture.
What was the financial impact on Starbucks during its first seven years in Australia?
Starbucks accumulated $105 million in losses during its first seven years of operation in Australia.
What strategic shift did Starbucks make under the ownership of the Withers Group?
Under the Withers Group, Starbucks shifted to focusing on tourist-heavy areas and adapted their locations accordingly.
What are some factors that helped Gloria Jeans succeed in the Australian market compared to Starbucks?
Gloria Jeans succeeded by adapting its menu to local tastes and using a local franchising approach.
What are two key coffee preferences of Australian consumers that differ from typical Starbucks offerings?
Australians prefer specialty coffee like flat whites and macchiatos over Starbucks' sugary drinks.
What are the potential growth opportunities for Starbucks in Australia?
Potential growth opportunities include focusing on locations in large shopping malls, targeting tourists and international students.
What was the primary reason for Starbucks' over-expansion failure in Australia?
Starbucks did not adapt its business model to the unique Australian coffee culture and rapidly over-expanded, making the brand too available and lacking exclusivity.
What lesson did Starbucks learn from their failures in the Australian market?
Starbucks learned the importance of adapting their business strategy to local market conditions and consumer preferences.
What role does tourism play in Starbucks’ current strategy in Australia?
Tourism is central to Starbucks’ strategy in Australia, as they target tourist-heavy locales to sustain their business.
How did local cafes maintain a competitive edge over Starbucks in Australia?
Local cafes offered coffee at lower prices, often with more trusted and familiar baristas, and provided coffee preferences tailored to Australian tastes.
What are Starbucks' plans for the Australian market, considering local and global economic contexts?
Starbucks plans to leverage its international brand appeal to attract tourists and international students, focusing on strategically located properties.
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