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Contemporary Analysis of Starbuck

Executive Summary

Starbucks contributes to a leading global coffee organization operating in Australia. This report contributes to the analysis of the contemporary features of the Starbucks company in Australia which were outlined by the effective strategies, their implications, influences, course of actions on the organization, and the goals that effectively managed it’s working. Starbucks’s strategies were influenced by the changing consumer preferences towards healthier and organic options, and increasing concern for sustainability and ethical practices, also introducing unique products and services, such as Nitro Cold Brew and mobile ordering, investing in technology, and developing sustainability enhancing practices to remain competitive. Starbucks engaged in a variety of practices such as menu offerings, including vegan options, and develop partnerships with other companies to offer unique products to enhance the customer’s habits. Along with this, mobile ordering, and loyalty programs also be included for the improvement of customer experience and these focus on the goals that were focused by Starbucks for expanding its business across the Australian market.

Table of Contents

Introduction. 4

Aim.. 4

Discussions. 4

Key deliverables. 4

SWOT Analysis of Starbucks in Australia: 5

Porter’s Five Forces Analysis of Starbucks in Australia: 6

Strategic influences. 6

Strategic implications. 7

Strategic Course of Actions. 8

Strategic Goals. 9

Implications of strategic goals for Starbucks in Australia: 9

Conclusion. 10

Recommendations. 10

References. 10


Starbucks contributed to being the leading firm or organization in the United States, introduced in 1971 along the street named cobblestones of Seattle’s historic Pike Place Market which is successfully developed its business across the world including Australian locations also. It was introduced in the late 2000 in Australia and till 2008, it has been successfully operated in approximately 90 locations that contribute to the translation of the basic 11 opening years. Starbucks contributes to the specialist in retailing coffee in the Australian market along with roasting, marketing, and retailing specialty coffee. This organization with the help of its stores, provides various blends of coffee, merchandise, and food items along with beverages of handcrafted that are very popular in the local areas. Along with Australia, it has also been established successfully in various other nations such as Nevada, Washington, etc. It popularly developed its business across the Australian nation with the objective or mission to inspire and nurture the spirit of individuals that had now contributed to approximately 2500 stores only in the Australian country that provides premier roaster and specialty coffee (Khushman, 2019).


This report aims to perform a contemporary analysis of the Starbucks organization in Australia and provide effectively and enhancing strategic management practices that were briefly described in the below report. It also aimed at contributing to the development of effective and enhancing procedures and regulations for the successful implication of the strategies and goals along with the course of actions of strategic development that were perfectly adopted by Starbucks for better improvement in the targeted market of the business.

To go with the predefined Aim, various sustainable approaches were adopted that are mentioned below which enhance Starbuck’s existence.


Key deliverables

  1. Market analysis: This contributes to identifying and analysing the key challenges and opportunities in the Australian market, including consumer behaviour, competitor analysis, and market trends. This analysis helps Starbucks to identify the most suitable approach to modify its products, services, and marketing strategies to fit the Australian market.
  2. Financial analysis: This contributes to analysing the financial performance of the Starbucks business in Australia, including revenue, expenses, and profitability. This information helps Starbucks to evaluate its financial goals and make informed decisions about the allocation of resources and investment opportunities.
  3. Marketing analysis: This contributes to assessing the marketing efforts and branding initiatives of Starbucks in Australia to determine the effectiveness of their campaigns and identify areas for improvement. This analysis is essential as it helps Starbucks to refine its marketing strategy to fit the Australian market and attract more consumers (Lovelock & Patterson, 2015).
  4. Customer analysis: This contributes to analysing customer behaviour, preferences, and feedback to identify ways to improve customer satisfaction and loyalty. This analysis helps Starbucks to develop a more customer-centric approach to service delivery and product development.

SWOT Analysis of Starbucks:


  1. Strong brand identity and global presence
  2. Wide range of products and services
  3. Customer loyalty through a rewards program


  1. High prices compared to competitors
  2. Limited menus in some locations
  3. Heavy dependency on the Australian market


  1. Expansion into regional areas
  2. Introduction of new products to the market
  3. Acquisition of smaller coffee houses and cafes


  1. Intense competition from local and international coffee houses
  2. Economic instability and fluctuations in exchange rates
  3. Increasing health concerns among consumers regarding coffee

Porter’s Five Forces Analysis of Starbucks:

  1. Threat of new entrants: low to medium due to high barriers to entry such as brand loyalty, high capital costs, and economies of scale.
  2. Bargaining power of suppliers: low to medium as Starbucks uses a limited number of reputable suppliers, but there may still be some power of suppliers over the pricing or availability of certain raw materials.
  3. Bargaining power of buyers: medium to high as coffee customers have many choices and could easily switch to lower-priced competitors or alternatives.
  4. Threat of substitutes: medium to high as the availability of other coffee houses and cafes, along with alternative beverages such as tea or even energy drinks, remains high.
  5. Competitive rivalry: high due to intense competition from local and international coffee houses, creating a challenging market for Starbucks in Australia (JIANG, 2016).

Strategic influences

  1. Economic factors: Economic factors such as employment rates, interest rates, and inflation rates could impact the purchasing power of consumers, which in turn could affect the demand for Starbucks products. For instance, if the economy is experiencing a downturn, consumers may cut back on discretionary spending and opt for more affordable alternatives to Starbucks’ offerings.
  2. Social trends: Social trends, including changing lifestyles, consumer preferences, and cultural shifts, can also impact Starbucks’ business outcomes in Australia. For example, as consumers become more health-conscious, Starbucks may need to adapt its product offerings to meet the demand for healthier options, such as non-dairy milk alternatives or low-sugar options.
  3. Competitive Landscape: The competitive landscape in the Australian coffee market could also impact Starbucks’ business outcomes. With the presence of local coffee chains and international players, Starbucks would need to continuously invest in marketing and product innovation to stay relevant and competitive in the market.

Strategic implications

All the factors that impact Starbucks’ business in Australia include

  1. Economic factors
  2. Technological factors
  3. Cultural factors
  4. Consumer behaviour
  5. Economic factors: Economic factors such as inflation, recession, and exchange rates could affect Starbucks’ pricing strategies, supply chain management, and investments. By closely monitoring the economic factors, Starbucks could adjust its marketing strategy, product offerings, and pricing strategies to sustain itself in the market.
  6. Technological factors: Technological advancements have changed consumers’ purchasing habits. With the emergence of mobile payments and digital experiences, Starbucks needs to incorporate technological integration into its customer experience to keep up with the fast-paced market and cater to customers’ demands (Sholihah, et al., 2016).
  7. Cultural factors: Australian culture is different from other countries where Starbucks operates. Its marketing and product positioning should consider Australia’s unique cultural values and preferences. Starbucks has to work closely with local communities to tailor its customer experience and product offerings, ensuring customers are happy with their experience.
  8. Consumer behaviour: Understanding consumer purchasing habits is an essential factor in Starbucks’ expansion in Australia. By tracking customer preferences, and purchases and involving customers in surveys, Starbucks could design targeted marketing strategies to tailor its offerings to their needs. This would improve customers’ overall experience and build customer loyalty, contributing to the company’s success.

By understanding the strategic implications of these factors, Starbucks could create a sustainable competitive advantage, build customer loyalty, and increase profitability in Australia’s coffee market.

Strategic Course of Actions

One strategic course of action that Starbucks in Australia could adopt is to diversify its menu and offerings to cater to local tastes and preferences. This could include introducing new locally sourced food items, beverages, and snacks. Starbucks could also collaborate with local suppliers and producers to source ingredients and create unique menu items that appeal to the Australian market.

Starbucks could focus on improving its customer experience by enhancing store ambiance, promoting sustainable practices, and investing in training and development programs for its employees. This could include offering personalized service, creating a welcoming environment, and providing educational resources to customers about the company’s sustainability initiatives.

Another strategic approach could be to expand Starbucks’s digital capabilities and online presence by investing in technology-based solutions such as mobile ordering, delivery services, and online promotions. This could help increase convenience and accessibility for customers and attract new customers who prefer shopping online.

Overall, Starbucks in Australia could adopt a multi-faceted approach by focusing on localizing its offerings, improving customer experience, and enhancing its digital capabilities to attract and retain customers (Peng, 2021).

Strategic Goals

  1. Increase market share: The first strategic goal for Starbucks in Australia should be to increase its market share. This could be achieved by expanding its store network and providing a high-quality customer experience.
  2. Enhance customer loyalty: The second goal should be to enhance customer loyalty. This could be achieved by introducing loyalty programs and personalized offers for its regular customers.
  3. Expand product offerings: Starbucks should expand its product offerings to tap into new segments, such as healthy food options, vegan products, and non-coffee beverages.
  4. Improve operational efficiencies: The fourth goal should be to improve operational efficiencies to reduce costs and increase profitability. This could be achieved by investing in technology, streamlining supply chain processes, and optimizing store layouts and design.

Implications of strategic goals for Starbucks in Australia:

These strategic goals would have several implications for Starbucks in Australia. Firstly, the company would need to invest heavily in expanding its store network and improving the quality of its customer service to increase its market share.

Secondly, introducing loyalty programs and personalized offers would require significant changes in the customer engagement process, which Starbucks may need to integrate into its app to ensure a seamless experience for customers (Pangarkar, 2015).

Thirdly, expanding product offerings would require Starbucks to conduct market research and test new products before launching them to ensure they align with local tastes and preferences.

Lastly, improving operational efficiencies would require Starbucks to invest in technology and redesign its operational processes, which may involve substantial costs and training programs for its employees. However, these steps are necessary to improve profitability and ensure long-term success in the Australian market.


From the above discussion on the topic that contributes to the contemporary analysis of Starbucks company, it has been concluded that it had successfully addressed various key deliverables and strategies that influence the impacts on the Starbucks company to manage the business effectively and also to support the sustainability practices. Also, it has been concluded that Starbucks also followed the strategic implication that was successfully addressed for the organization to achieve the main aims of the company as well as including the main course of actions that were adopted and implemented by Starbucks to achieve effective sustainability policies for effective growth. Also, it has been concluded that with the effective establishment of a course of action, the strategic goals and objectives that were previously decided could be effectively achieved and managed.


From the above discussion on a predefined topic and the course of actions that were determined and based on these actions following recommendations were made which include

  1. For diversifying the menu and offering that was catered to local tastes and preferences needs to be focused on introducing pure hygienic and sustained practices for sourcing food items, snacks, and beverages.
  2. Customer experiences must also be considered as the priority and should be more specifically recognized with the sustained procedures.
  3. Technological world is effective in developing businesses across the globe, which must be effectively adopted with the establishment of various policies and procedures along with several modifications within the organization.
  4. Overall, with the effective development in the above all field and technologies, sustainability and customer experiences could be successfully developed through their help (Lemus, et al., 2015).


JIANG, Q. (2016). The Effects of Strategic Management for Foreign Direct Investment on a Firm’s Performance: An Examination of Australian Service Organisations in China.

Khushman, A. (2019). An Evaluation of Entrepreneurial Activities and Growth Strategies–The Case of Starbucks Coffee House. Available at SSRN 3594916.

Lemus, E., von Feigenblatt, O. F., Orta, M., & Rivero, O. (2015). Starbucks Corporation: Leading Innovation in the 21st Century. Journal of Alternative Perspectives in the Social Sciences, 7(1), 23-38.

Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.

Pangarkar, N. (2015). Performance implications of strategic changes: An integrative framework. Business Horizons, 58(3), 295-304.

Peng, M. W. (2021). Global strategy. Cengage learning.

Sholihah, P. I., Ali, M., Ahmed, K., & Prabandari, S. P. (2016). The Strategy of Starbucks and it’s Effectiveness on its Operations in China, a SWOT Analysis. Asian Journal of Business and Management, 4(5).’s_Effectiveness_on_its_Operations_in_China_a_SWOT_Analysis/links/5bd5ab0c299bf1124fa7b34a/The-Strategy-of-Starbucks-and-its-Effectiveness-on-its-Operations-in-China-a-SWOT-Analysis.pdf

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