Final answer:
Starbucks failed in Australia due to the strong coffee culture, competition from existing chains, and its pricing strategy.
Step-by-step explanation:
Starbucks failed in Australia due to a number of factors. One of the main reasons was the strong coffee culture already established in the country. Australians have a preference for small, independent coffee shops that focus on quality and a personalized experience. Starbucks' standardized approach and larger sizes did not resonate with the local market.
Additionally, Starbucks faced tough competition from existing coffee chains in Australia, such as Gloria Jean's and Coffee Club, which had already built a loyal customer base. These chains offered a similar concept to Starbucks but with a better understanding of local tastes and preferences.
Lastly, Starbucks struggled with its pricing strategy in Australia. The higher prices compared to local competitors were a deterrent for cost-conscious Australians. The perception that Starbucks was an expensive, American brand hindered its success in a market that valued affordability.