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Starbucks: Market Saturation and Customer Interaction Case Study

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The new Starbucks CEO, Kevin Johnson, faced two significant challenges he needed to overcome. First of them is market saturation, which occurred because the company’s established product had reached its complete client base in the present market. This problem typically signifies that supply has begun to outstrip demand vastly. The second issue is the further development of digital customer interaction strategy. This approach should aid in the advancement and improvement of the customer experience in a variety of ways. There are several recommendations for Kevin Johnson that might improve the situation.

As such, diversification is the most successful method for dealing with market saturation. It enables businesses to extend their potential client base by entering adjacent areas (Jha et al.). As a result, Starbucks needs to generate new consumer value, demand, and income streams. More specifically, it can be recommended that Starbucks researches its competitors in the countries to which it plans to expand. Moreover, it can price its services more effectively to allow customers from less developed economies to purchase. Furthermore, Starbucks needs to stimulate the in-store digital experience to improve customer satisfaction through digital engagement. It could be achieved through a personalized approach, such as allowing customers to order specific goods tailored to their needs online.

To conclude, it is recommended to understand how the company’s rivals market their businesses, which will provide Starbucks an advantage in widening its customer base. The other solution for the company in which the market is saturated is to start decreasing its pricing to entice clients. Finally, personalization and creating one-of-a-kind experiences are critical components of digital engagement. Personalization may give clients a more inviting impression and stimulate their attention without human contact.

Work Cited

Jha, Srivardhini K., et al. “.” Sustainability, vol. 13, no. 21, MDPI AG, 2021, p. 11660. Web.

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IvyPanda. (2024, July 9). Starbucks: Market Saturation and Customer Interaction. https://ivypanda.com/essays/starbucks-market-saturation-and-customer-interaction/

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"Starbucks: Market Saturation and Customer Interaction." IvyPanda, 9 July 2024, ivypanda.com/essays/starbucks-market-saturation-and-customer-interaction/.

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IvyPanda. (2024) 'Starbucks: Market Saturation and Customer Interaction'. 9 July.

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IvyPanda. 2024. "Starbucks: Market Saturation and Customer Interaction." July 9, 2024. https://ivypanda.com/essays/starbucks-market-saturation-and-customer-interaction/.

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IvyPanda. "Starbucks: Market Saturation and Customer Interaction." July 9, 2024. https://ivypanda.com/essays/starbucks-market-saturation-and-customer-interaction/.

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