The practice had helped the Starbucks to maintain quality over the years. However, it increased the dependency on the farmers and the variations in the productions affected the company. This made the price of the coffee in the Starbucks higher and the business was rendered unprofitable. In the case of Australia this was one of the factors for the closure of various shops. (Starbucks Coffee Company, n.d.)
Operations: In the case of the Starbucks in Australia, the company operated as in the case of the other countries. There were no modifications of the products and no efforts were made to make the products suit the needs of the people in Australia. The ambience of the stores were similar to that of the other parts of the world which did not provide additional value to the customers in Australia. The main factor for the success of Starbucks in the other parts was the essence on “coffee culture”. However, in Australia, the “coffee culture” was already in place and the company could not provide extra facilities to the people. (Why Starbucks failed in Australia, 13th August, 2008)
Outbound logistics: The Starbucks operates through the chain of stores in the other parts of the world. In the case of Australia, the company opened over 80 stores that were placed in the urbanized areas. The expansion never took of in a big country like that of Australia and the company had presence only in some of the pockets. (Starbucks goes cold in Australia, 29th July, 2008).
Marketing and Sales: Starbucks is a well known brand all over the globe. However, surprisingly, the company has never resorted to the aggressive marketing policies. In the case of Australia, the company never marketed the brand aggressively and there were campaigns like the “red cups on cars” where starbucks cups were placed on top of cars and taxis. The company depended on the “word of mouth”