Krispy Kreme Case Analysis Essay

5592 Words Dec 13th, 2010 23 Pages
Krispy Kreme Case Analysis

Krispy Kreme Doughnuts, Inc.: A Case Analysis

Presented to

October 09, 2009

Table of Contents

II. Table of Contents 2
III. Executive Summary 3
IV. Situational Analysis 5
A. Environment 5
B. Industry Analysis 5
C. The Organization 7
D. The Marketing Strategy 9

V. Problems Found in Situational Analysis 10
A. Statement of primary problem. 10
B. Statement of secondary problem 12
C. Statement of tertiary problem. 13

VI. Formulate, evaluate, and record alternative course(s) of action 14
A. Strategic Alternative 1 14
1. Benefits 14
2. Costs 15
B. Strategic Alternative 2 16
1. Benefits 16
2. Costs 19
C. Strategic
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“Tom Horton”, on the other hand, while well-known in Canada is not as recognizable in the United States as “Dunkin Donuts”, although it does seem to have gained a foot-hold in states along the border, such as Maine, New York , Ohio, etc., and other select locations in the eastern U.S..

There are constant threats of new competitors in this industry. In addition to coffee retailers and cafes, such as “Starbucks”, “Seattle’s Best” and other distributors, competition from other bakery retailers, such as “Winchell’s Donut House” and “LaMar’s Donuts” appear to be the chief new threats. However, current expansion plans for those firms appear to have fallen short of projections, perhaps due to over-saturation of the markets and the slowing economy. Competitors are always coming up with substitute products to attract customers. Specialty items, such as bagels, muffins, breakfast sandwiches and other items that may not be as sweet as donuts are popular and/or are easier to eat on the go. Specialty drinks, both hot and cold, particularly high-end coffees are always popular with customers and a threat to Krispy Kreme’s coffee, which has received mixed reviews from patrons. Outside suppliers have relatively little impact on the firm’s business as Krispy Kreme manufactures the mixes for the donuts, and the donut-making equipment, and is the coffee supplier for use in the company-owned and franchised stores. However, the “KK

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