Being a hot brand doesn’t guarantee success. Learn why a brand like Starbucks could fail in a new market and has failed in huge tourist destination like Australia.
- Business model and menu wasn’t adjusted to Australian markets. Lesson: Business models have to be adapted. Menus too must cater to local taste and price points.
- Grew too fast without slowly integrating into the Australian market. Lesson: Tricky one but there has to be a balance. Rapid expansion made Starbucks “too available” to the consumers before they even developed an appetite for the brand.
Australia had close to 10 million tourists in 2018 spending about 30 Billion USD. It is definitely a huge market and Starbucks will definitely want to bounce back.
Watch the video to learn more.