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Krispy Kreme Corporation is primarily known for the quality of its donuts. Since the company's inception in 1937, it has grown to be for many customers the best amongst its competitors. The company thus has many strengths, not least of which is its sustained popularity among customers, and the effectiveness of word of mouth advertising. Below is a "SWOT" analysis, identifying strengths, weaknesses, opportunities and threats to Krispy Kreme. This is followed by comments to analyze and identify the company's position and future in the donut market.
Obviously, Krispy Kreme's strengths have propelled the company to become the giant it is today. Some of these strengths include the sheer magnitude of its status on a national basis. Krispy Kreme has become the biggest name associated with their product. This is coupled with an honest, old-fashioned and friendly customer-based approach. In fact, this approach has remained constant throughout Krispy Kreme's existence since 1937. In terms of product, strengths include the fact that doughnuts are made fresh every day, and served almost as they emerge from the oven. Coupled with this is the fact that doughnut making is displayed to visitors as the product is created. This adds an element of entertainment to the doughnut shopping...
The product is also of a notably high quality, with a unique taste associated only with Krispy Kreme.
Market evidence supports the assessment that Krispy Kreme's strengths exceed its weaknesses. However, there are weaknesses that need to be addressed. These include the fact that in an increasingly health conscious market, Krispy Kreme is offering no healthy alternatives to their high calorie product. In terms of advertising, the company relies solely on word of mouth and name recognition, and spends none of its revenue on formal advertising in any media. Furthermore Krispy Kreme does not include delivery service, thus failing to capitalize on a vast potential market and also the opportunity to gain new customers.
In terms of opportunity, Krispy Kreme's superior product quality and unique approach to customer relations provides a solid basis from which to expand. This opportunity could be used in growth and expansion both nationally and internationally. Krispy Kreme can also use their advantageous position in the market to expand to other products in order to compete in and increasingly health conscious market. Delivery service is also an opportunity featuring great earning potential for the company.
While threats are…
Bibliography
Limbach, Dan. "Has Krispy Kreme Peaked?" In Time, Inc. June 17, 2003
There is abundant opportunity in the western U.S. that KKD has yet to address. Each aspect of the strategy plan is now addressed by functional area: Market Development Over the next three years, KKD needs to first concentrate on competing more effectively in those regional markets where Dunkin' Donuts to this point has dominated the sale of donuts and related food and beverage items. This must begin with a build-out of
Krispy Kreme Doughnuts is a specialty retailer of doughnuts, owning and franchising stores where it makes and sells over twenty varieties of doughnuts, including its famous Hot Original Glazed variety (Company profile, Yahoo! Finance). As of February 1, 2004, there were 357 Krispy Kreme factory stores in operation, of which 338 were located in the United States. It also uses third-party retailers to distribute its product. To grow its business,
There has been increase in the number of franchise stores that are operating, which generate critically needed income for the company. Currently, the company is also involved in a credit agreement that contains provisions that, among other requirements, restrict the payment of dividends and requires the company to maintain compliance with certain covenants, including the maintenance of certain financial ratios (Management Discussion and Analysis (MD&a) of 10-K for 2007: 36).
Krispy Kreme: The Unsweetened, Unglazed Truth of Its Equity, Cash Flow, And Notes To the Managers of Krispy Kreme, Inc.: As well you all surely know, although it does bear repeating for the sake of company pride, the publicly traded firm Krispy Kreme began as a small, independent business and is now a large, publicly traded firm with franchises extending all over the country, as well as the potential of gaining numerous
Krispy Kreme Case Analysis Krispy Kreme Doughnuts Inc. certainly seemed in an excellent position in the doughnut business at this moment, however, both analysts and managers of the company have been wondering whether the high level the stock had reached could actually be sustained by the sale of doughnuts and whether in the future there is a possibility that the company's stock and, subsequently, its value, will be dropping. Indeed, the stock
The organization has been able to effectively use their large buying volume to lower the cost of supplies and reduce supplier power even further. Bargaining Power of Buyers: Krispy Kreme is highly vulnerable to the power of buyers, as there are a variety of substitutes and competition in the industry is intense. However, because the industry is moderately fragmented, Krispy Kreme finds power in their strong brand name, which attracts and retains