Assignment First

星巴克于2000年首次在澳大利亚开业。这家咖啡连锁店在2000年的目标是在澳大利亚建立一个约20亿美元的外卖咖啡市场,但却只推出了约22家星巴克,而竞争对手如Gloria Jeans在澳大利亚拥有约450家分店。人们对星冰乐(Frappuccinos)如饥似渴,对什么是“高杯”拿铁(tall latte)一无所知,对滴漏咖啡(drip coffee)也感到困惑,尽管当地卑微的咖啡师感觉全球歌利亚(Goliath)很糟糕,但他们还是要喝上两杯星巴克(Starbucks)。该连锁店告诉澳大利亚新闻网,它有一个新的成功战略,此前曾表示,它的目标是成为“澳大利亚最成功的咖啡连锁店”。但一位营销专家预测,由于该品牌仍被澳大利亚人视为“傲慢”品牌,它将达不到预期目标,最多只会再开10家门店。损失高达1.43亿美元,星巴克在2008年关闭了门店,只有悉尼、墨尔本和布里斯班等黄金地段的一些分店留给了那些熟悉该品牌并寻求该品牌的顾客(Brook 2016)。从2016年到2017年,星巴克的目标是东山再起,这篇代写-星巴克战略创新的评估如下:

Innovation for a new business is a new idea around which the business is developed. Innovation is not just needed for starting a new business. All businesses need it to strategize and keep growing (Hartmann 2011). Now in the case of Starbucks, failure to innovate based on a new market is observed as a main reason for the business to close shops in 2008. There are five stages observed in a business development and progression. The first of the stage is the development stage. The company was started in 1971, as a retailer of whole beans and ground coffee, and it was the primary innovative step to sell elite coffee that helped the business expand across the Americas and then to other global nations (Starbucks 2017). Starbucks moved past the development, start-up stages and the growth/survival stages. It is now somewhere between the expansion/rapid growth stage, the maturity stage and the decline. For Starbucks to continue through growth and maturity and not reach the decline stage, it needs to prolong this stage by innovation and newer market reach, or newer product release. Starbucks, as observed in its media reports and secondary reports, has been successfully innovating (Michelli 2006). Yet it failed in the Australian market because it could not tie its innovations as a business plan proposing value to its customers. Now in its newer launch, it is time for the business to rethink and reposition how it can create and deliver value.

The BCG matrix can be used to further understand the state of Starbucks if it re-enters the Australian market. This will help to prepare a Business Model Canvas BMC and a Value Proposition Canvas VPC for Starbucks. The BCG is a 2×2 matrix for understanding the portfolio in market share and products offered. A market share axis and a market growth axis are used as the base to plot products. Cash cows, dogs, question marks and stars are the quadrants of matrix.
In the case of the cash cows, the market and the business in question will typically own a much larger market share and the industry could be a slow growing or mature one. Now Starbucks is a cash cow in its own market perhaps as it does own a large market share there but in Australia it cannot be considered a cash cow. On a similar note, the quadrant for stars can also be rejected, as stars usually represent a high market share in the case of a fast-growing industry. In order to be Stars, Starbucks must be the leader in Australia, but that is not the case (Mescall 2008). A question mark quadrant is one where the businesses itself would have a low market share. However, question mark quadrant has a high growth market share and hence the more they innovate the more they can succeed (Honack et al. 2017). Now Starbucks faced a low market share situation in Australia when they first tried to launch in 2000. The ensuing failure that led them to close shops as of 2008 was because the matured market was competitive for theme. While there was potential for growth, there was intense competition for Starbucks in the form of the businesses like Gloria Jeans and Coffee Club. These had around 450 branches and 350 outlets respectively when Starbucks had around 22 even as it was aggressively trying to acquire market share (Brook 2016). The industry in itself is the dairy beverages industry and it is considered a more matured one in Australia. According to a Boston Consulting Group BCG report that was released in the year 2015, global sales in diary was bigger, and generated around $500 billion in revenue. The report states that the industry is fast moving, however, it was fast moving only in some markets. For instance, although the overall industry was expected to generate around $800 billion as of 2020, it was identified that mature markets like Australia, UK and others were slow moving. As Marc Gilbert, a partner in the BCG report states,
“Dairy is still a two-speed world. In mature markets, overall growth is anemic (though certain subcategories are gaining ground). But in developing markets, consumption is growing faster than GDP. China, the Middle East, and Southeast Asia will account for 75% of the 10% annual volume growth projected over the next five years” (BCG 2016, para. 3).