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Krispy Kreme Doughnut SWOT Analysis

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COMPANY ASSESSMENT

Company Background

In 1933, Vernon Rudolph and his uncle purchased a small doughnut shop in Paducah, Kentucky. This doughnut shop was owned by a French chef named Joe LeBeau. Chef LeBeau had a secret doughnut recipe that he included in the sale of the shop. This recipe that Vernon bought is used to make those wonderfully delicious glazed doughnuts that Krispy Kreme is known for world wide. In 1937, Vernon decided to settle down in Winston-Salem, North Carolina, and on July 13, 1937, he opened the very first Krispy Kreme Doughnuts. At first, Vernon baked his doughnuts and sold them to local grocery stores, but soon people began lining up outside of his shop so they could purchase fresh, hot, glazed doughnuts from …show more content…

The one-of-a-kind doughnut making machines, that make this supply chain work, are required to be purchased by any KKD store.
Weaknesses
The largest weakness that KKD faces is its competitors, specifically the number of stores compared to competitors. While KKD has almost 750 stores world-wide, its main competitor Dunkin Donuts’ has over 10,000 store locations globally. This means that Dunkin Donuts’ dominates the market, and that it is extremely difficult for KKD to penetrate the market in areas where Dunkin Donuts’ already exists. Another weakness that KKD faces, is the continuing trend of people wanting to live healthier lives. Six out of every ten Americans want to lose weight and become healthier. KKD has very few “healthy” choices on its menu, but they have been instituting oatmeal in certain regional areas that may help to counteract this weakness.

Opportunities
There are many opportunities for KKD, but the best opportunity for them is the returns that they could earn by expanding internationally. Especially in the Asian countries, where it is projected that people will buy 3% more by 2015. If KKD can capitalize on these countries, they may able to see an excellent return on these investments in the next few years.
Another great opportunity for KKD is in the area of local suppliers in international countries. If KKD can determine a way to envelop these suppliers without incurring a large cost, the supply

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