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Essay / Starbucks in Australian Market - 1319
Starbucks is an American coffee company based in Seattle, it was founded in 1971. Starbucks uses a double-tailed mermaid as its logo, the reason behind this is that, according to a mythology Greek the double-tailed mermaid used to seduce sailors into jumping from the boat into the water, this simply means that she is irresistible. Today, Starbucks is one of the largest coffee industries in the world. They provided high quality coffee, pastries and snacks. Regardless of its high price, customers are still willing to pay for its quality. When Starbucks entered the Australian market in 2000, it was a success. Starbucks targeted capital cities before expanding into regional centers. The reason is simple, because the demand for expensive coffee is higher in capital cities and during this period less competition is expected. Starbucks has become the leading and competitive coffee chain company globally. By 2007, Starbucks had opened more than 84 corporate stores across the country. It was not until mid-2008 that Starbucks realized its peak of success was over in the Australian market. Businesses around the world are diverse and yet share a common challenge: solving problems not only effectively and efficiently, but also creatively. The POLC framework, which stands for Planning, Organizing, Leading and Controlling, plays a major role in business survivability and success. SWOT analysis examines both internal and external factors that can affect Starbucks' performance. The purpose of this report is to define and analyze how Starbucks reacts and should have reacted to the change in its external environment in the coffee market. This report will also identify and discuss how the POLC framework can help Starbucks compete and reduce losses. of their failing performance in the Australian market and how SWOT analysis helps define some externalities that can pose a threat to Starbucks. Finally, this report will identify recommendations for Starbucks to minimize future losses and compete with major competitors like McCafe and Gloria Jeans Coffee. .Starbucks did well in the Australian market in its first year of introduction because it offered a quirky and unique service that other coffee shops at the time did not offer. That was until 2003 when McCafe was introduced. McCafe provided similar services and coffee as Starbucks, but at a much cheaper price. Demand for Starbucks is decreasing significantly, and like McCafe, demand is booming.