In summary, it appears on all the evidence that Starbucks not only misjudged the Australian coffee culture but also misjudged the extent of the competition, and failed to adapt its offering to the local market. Furthermore, with the advent of high quality barista training, the availability of premium coffee beans and the technology to produce a high quality cup of coffee (at a modest cost), sole operators who knew their customers by name, were able to set up business as viable competitors. Starbucks may have been responsible for growing the premium coffee category, but the emergence of Gloria Jean’s and the Coffee Club (and McCafé, a premium coffee shop embedded in McDonald’s restaurants) turned out to be serious competitors. Finally, questions have to be raised about Starbucks fundamental business model in a market where many small niche players can easily replicate the ‘Starbucks Experience’
In summary, it appears on all the evidence that Starbucks not only misjudged the Australian coffee culture but also misjudged the extent of the competition, and failed to adapt its offering to the local market. Furthermore, with the advent of high quality barista training, the availability of premium coffee beans and the technology to produce a high quality cup of coffee (at a modest cost), sole operators who knew their customers by name, were able to set up business as viable competitors. Starbucks may have been responsible for growing the premium coffee category, but the emergence of Gloria Jean’s and the Coffee Club (and McCafé, a premium coffee shop embedded in McDonald’s restaurants) turned out to be serious competitors. Finally, questions have to be raised about Starbucks fundamental business model in a market where many small niche players can easily replicate the ‘Starbucks Experience’
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