Dunkin Donuts

1394 Words Jun 7th, 2008 6 Pages
Strategic Positioning of Dunkin’ Donuts
February 18, 2008

Introduction: In the competitive world of the coffee industry, or any industry for that matter, it is essential for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts is well known by generations and loved by a growing number of customers around the world. It was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Back then, William had a simple philosophy: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores” (Dunkin’ Donuts, 2008). That philosophy still holds true today and is the foundation that has enabled
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The unique process, called double brewing, uses twice the amount of coffee when making the beverage to achieve consistent flavor and freshness that are never compromised at the expense of serving it cold. The result is a smooth, rich taste sensation (Dunkin’ Donuts, 2008). It produces iced coffee that is never bitter or watered down. Dunkin’s Donuts also offers a variety of flavors to add to your iced or hot coffee. Customers can choose from nine tempting flavors such as French Vanilla, Blueberry, Coconut, and Chocolate. They are all 100 percent sugar-free and contain no preservatives (Dunkin’ Donuts, 2008). To secure and sustain Dunkin’ Donuts leadership position as America’s largest retailer of coffee-by-the-cup, the company has begun an aggressive national expansion (Dunkin’ Donuts, 2008). Dunkin’ Donuts, which has over 4,800 outlets in the United States, plans to triple its size across the country (Spielberg, 2006). Initial cities targeted for Dunkin’ Donuts national expansion include Atlanta, Baltimore, Charlotte, Cleveland, Nashville, and Tampa.
Gap: Dunkin’s Donuts is America’s leader in coffee-by-the-cup and not the leader in the coffee industry. Their strategy is to incorporate differentiating features to set them apart from the marketplace with their low cost and high quality; however, that is not a sustainable competitive advantage. This strategy can only remain powerful as long as the company is sufficiently

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