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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 business-
savvy 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 health-
consciousness, 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 (W8-
T1), 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) .