 How the local competition defeated a global brand: The case of StarbucksPaul G. Patterson, Jane Scott and Mark D. Uncles Australasian marketing journal, 2010, vol. 18, issue 1, 41-47 Abstract: The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the specifics of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the first place; and the necessity of having a sustainable business model. Keywords: Service brands; Service quality; Global branding; International business; Starbucks; Coffee (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:aumajo:v:18:y:2010:i:1:p:41-47 DOI: 10.1016/j.ausmj.2009.10.001 Access Statistics for this article Australasian marketing journal is currently edited by Roger Marshall More articles in Australasian marketing journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.