SWOT Analysis

SWOT Analysis   is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. Krispy Kreme Doughnuts has observed the following strengths recognizable logo and recognizable brand name this will allow the customers to identify the store whenever they see it. Longevity in the market and excellent reputation among customers with this, people ought to buy their doughnuts whenever they see it and it is well-established. Traditional product with universal/cultural appeal and new businesssavvy CEO with this, new strategies will be implemented and the news made the customers curious buying their doughnut’s.   Fund raising has a great appeal to the public especially with their CSR. Other strengths include KKD produces approx. 5.5 million doughnuts a day consisting of over 20 categories, KKD doughnuts are available in supermarkets, grocery stores convenience stores, as station, Wal-Mart and Target stores, KKD has 395 with the presence in states on USA and in 10 foreign countries these has a great impact on the public. Weaknesses are weak slogan and lack of continuity, having a poor marketing and advertising will have a big impact on the firm’s sales. Loss of uniqueness and limited menu this will make the customers be bored since they will feel that the there is nothing new. Strong competition for Dunkin doughnuts and Starbucks these two competitors has a great impact since they are both well-established and Starbucks is known for their delicious coffees. Several lawsuits against the company in the past had a great bad impact to the company in terms of its reputation. Other weaknesses include multiple marketplaces disperse resources, cumbersome web navigation, and fall in revenues and profits since year 2008, weak business in International market,. Opportunities include increasing number of millennial who love to eat sweets, Other competitors does not have hot doughnuts to sell (Dunkin Donuts), Asians love and are open to try foreign foods, Families crave convenience because of busy life styles, Starbucks' price hike due to increase in cost of product ingredients and wages, Positive feedbacks in social media accounts by netizens, rise of popularization of online order, many children love sweet treats, client expansion, and stock growth. Threats include Starbuck's has approximately 25 times the amount of stores worldwide than KKD has, high gas prices, poor jobs economy, Increased healthconsciousness, government regulation of foods, people are aware of the fact that sweets contains more calories which will result in variety of diseases, Dunkin donuts presently dominates the doughnut market particularly in Northern Us, the market that they are supplying decides to make their own products, increasing cost of ingredients, and some countries mostly prefer their local brands particularly in Europe.

Strengths-Opportunities Strategies, supermarkets and stores in US have pictures of children eating kkd to attract the children (S9:O8), KKD has to introduce or expand their product in Asian countries because of their love to sweets and willingness to purchase foreign products (S10:O3), produce more hot donuts to attract more customers and maintain its competitive advantage. (S8, O2), Supply more donuts in

different supermarkets and stores. (S9, O4), Maintain customer satisfaction by providing their needs, identifying their wants and portraying good customer service. (S4, O6). Weaknesses-Opportunities Strategies, Continue to work on website, keeping its eye catching appeal but increasing ease of use (W6:O7), Product development-Create new flavors that will suit the taste of the millennial (W5:O1), Advertise and promotes hot doughnuts on the internet to demonstrate people (W2: O6), Consider joining forces with other strong companies (W7:O9), Allow franchises to purchase local ingredients to reduce costs (W7:O5). Strengths-Threats Strategies, Look for any other possible consignment/stores to supply Krispy Kreme and continue a good business with the other stores they are supplying. (S9, T8), Improve the products taste and design while maintaining the traditional and cultural appeal to attract more customers. (S5, T7), KKD have to introduce new pastries and juices with low sugar and fat to take care of people conscious about health and look for low fat. (S4, T4, T6), Maintain the good service and performance of KKD in different store locations and build additional store in places they still don't engage to give employment to those capable unemployed persons. (S10, T3), Implement new regulations about monitoring the Krispy Kreme's performance to identify things to maintain and improve to increase sales. (S6, T10). Weaknesses-Threats Strategies, Expand product line with low-calorie foods (W5-T4), KKD have to expand their business in highly populated countries like South America and South Asia (W8T1), Recruit top executive talent from other fast food firms (W9-T3), Improve the company's advertising prowess and hire promotional experts (W1, W2-T7,T10), Provide programs for the betterment of the customers (W10, T5)

The Strategic Position & Action Evaluation matrix or short a SPACE matrix  is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization. Each item must be rated with 1 being the worst and 6 being the best. Financial Strengths are scored as: , leverage (3), liquidity (5), working capital (5), gross profit margin (3), inventory turnover (4), earnings per share (5), current ratio (3), cash flow (2), debt to equity ratio, solvency (3). Competitive  Advantage are scored as: , one-of-a-kind taste (5), original "Hot Now" sign (6), community relationships (6), heritage (4), current Locations are "destination" locations (2), development of smaller stores (5), investments in R+D (5), research suggested customers welcome complementary products (4), hired VP of domestic franchise development in 2012 (6) , and 68% of stores are international (4). Environmental Stability are scored as:, untapped demand for donuts (5), international relationships (3), consumer preferences (1), technology changes (5), price range of competition (6), barriers to market entry (2), competitive pressure (2), price elasticity of demand (6), demand variability (3), risks involved in business (3). Industry Strength, industry donut sales rose 5% (6) , less vulnerable to economic downturn (6), increasing prices of

agricultural products and energy risk factors (5) , affordable health Care Act may increase costs (3), technological know-how (2), growth potential (3), profit potential (3), resource Utilization (4), ease of entry into market (6) , productivity (4) .