IDEAS home Printed from https://ideas.repec.org/a/eee/aumajo/v18y2010i1p41-47.html
   My bibliography  Save this article

How the local competition defeated a global brand: The case of Starbucks

Author

Listed:
  • Patterson, Paul G.
  • Scott, Jane
  • Uncles, Mark D.

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.

Suggested Citation

  • Patterson, Paul G. & Scott, Jane & Uncles, Mark D., 2010. "How the local competition defeated a global brand: The case of Starbucks," Australasian marketing journal, Elsevier, vol. 18(1), pages 41-47.
    • Handle: RePEc:eee:aumajo:v:18:y:2010:i:1:p:41-47
    DOI: 10.1016/j.ausmj.2009.10.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1441358209000949
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ausmj.2009.10.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yibei Pu & Norzaidahwati Zaidin & Yaodong Zhu, 2023. "How Do E-Brand Experience and In-Store Experience Influence the Brand Loyalty of Novel Coffee Brands in China? Exploring the Roles of Customer Satisfaction and Self–Brand Congruity," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    2. Brian Adams & Joshua Gans & Richard Hayes & Ryan Lampe, 2018. "Does Organisational Form Drive Competition? Evidence from Coffee Retailing," The Economic Record, The Economic Society of Australia, vol. 94(305), pages 155-167, June.
    3. Lin Yang & Jingyi Yang & Chenjian Zhang & Liangliang Lu, 2023. "CEO narcissism and cross-boundary growth: Evidence from Chinese publicly listed manufacturing firms," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2164-2188, November.
    4. Anca Madar, 2018. "How Do European Cafe Chains Managers Handle Competition?," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 3(4), pages 178-184.
    5. Moon, Sangkil & Song, Reo, 2015. "The Roles of Cultural Elements in International Retailing of Cultural Products: An Application to the Motion Picture Industry," Journal of Retailing, Elsevier, vol. 91(1), pages 154-170.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:aumajo:v:18:y:2010:i:1:p:41-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/australasian-marketing-journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.