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.
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
Advertising for TITB is placed in high traffic, high consumer areas (subways, bus stops, etc.) Evaluation Why KK? Taste, freshness, and thinking of the office? KK looks better than competitors. Choice Something special as treat for oneself or office mates Don't just purchase one. Alleviates guilt and adds emotion to purchase Evaluation What do people think? Encourages multiple purchases. Allows for multiple opinions and feedback loop. Critique and Recommendations Krispy Kreme's advertising campaign of a combination of making it a dozen and thinking inside
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
In turn, the Return on Equity, which is calculated my multiplying the Du Pont variables listed above, will most definitely be altered. The potential for return is, naturally, one of the most relevant factors for investors in determining if a stock is a worthy investment, and if so, how much of it to buy. A "downward" change in the ROE will most likely have a detrimental effect on stockholders
But these changes, materialized in increased sales and consequently revenues, improved quality of the products and services offered as well as the technologies used in the manufacturing process have supported the development of the corporation. From a financial point-of-view, they created the image of a strong and reliable company. The reasons why this change has financial implications is a simple one: a stronger company is better perceived by the market
That is the beauty of the successful and rising platform established through successful investments; it all becomes quite circular. Then, by reinvesting and refinancing earnings, everything becomes stronger. Just as easily, however, this corporation could have been buried. 1. What is a franchising arrangement? And how is this reflective of business expansion? Moreover, how does this support business growth? From HighBeam Business, these key-terms set the stage from here on out: MLA:
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