Krispy Kreme External Anaylsis Essay

1204 Words5 Pages
External Environment Economic The US economy is still recovering from a recession. Despite the poor economic conditions, Krispy Kreme managed to have a steady growth in revenues. Krispy Kreme however is in a low cost industry therefore the rise and fall in the market does not affect their revenues as significantly as higher priced luxury goods. Sociocultural/Global If and when Krispy Kreme decides to go global they will enter a whole new world of adaptation to different markets. They will no longer be able to offer their staple hot fresh plain glazed doughnuts and expect them to sell in every market. France for instance has built a world reputation on fresh baked goods; therefore their key branding technique would not be as…show more content…
Enabling everyone in the Krispy Kreme chain to monitor, forecast, and plans supply and cash flows through Krispy Kreme’s enterprise resource planning system. In addition to this Krispy Kreme has just completed a central manufacturing and distribution center for doughnut mixes to be shipped all across America. The new facility is located in Illinois and is distributed by railcars. 5 Forces of Competition Bargaining Power of Suppliers The ingredients in doughnuts are simple and plentiful. Anyone who wants to enter the doughnut industry can simply stop by a grocery store to purchase the necessary supplies. The amount of vendors in the supply side of this industry limits the power of suppliers greatly. In addition to this Krispy Kreme has centralized its dough production facility. This centralized mixing facility has added an extra advantage aside from quality assurances. The central mixing facility enables Krispy Kreme to purchase all of their supplies from closely maintained relationships keeping costs low the power on the side of Krispy Kreme. Bargaining power of buyers Krispy Kreme consumers have many options in Krispy Kreme’s direct doughnut competition but also with the plethora of quick service restaurants competing for consumer’s dollar. In order to counteract this Krispy Kreme has developed their extremely strong brand through the doughnut theatre.

More about Krispy Kreme External Anaylsis Essay

Open Document