A Study on the Use of SWOT for Assessment of Dunkin Donuts

The S.W.O.T. Evaluation I chose is for the renowned Dunkin’ Donuts, forerunner of the beverage and baked goods marketplace. I figured it would be fascinating to see how the world’s largest coffee and baked goods chain in the world lines up to the competition. I also believed it would be interesting to get some information about the enterprise psychology of Dunkin’ Donuts compared to other well-known donut/coffee chains like Krispy Kremes and Starbucks. A lot more so Krispy Kremes because they are much more mainly known for donuts than Starbucks which is solely coffee primarily based item besides the couple of pastries they supply for customers. The target industry for Dunkin’ Donuts is students and or teens who are among the ages of 15-18. And young adults who are among the ages of 18-45 years old. The mission statement of the founder is as follows:

“Make and serve the freshest, most scrumptious coffee and donuts swiftly and courteously in modern, effectively-merchandised stores.”

Strengths

• Location: Dunkin’ Donuts are normally positioned inside walking distance of schools and company centers
• Price tag: Price of coffee/beverages/donuts/pastries are cheaper and a lot more affordable than its two top competitors (Krispy Kremes and Starbucks)
• Client Service: Prompt, friendly and has a “Mom’s & Pop’s” feeling when you walk by way of the door.
• Franchisee-owned and Operated: 100% of the ten,000+ Dunkin’ Donuts stores are franchised
• Competitive Value Technique: They have a twelve point set of values: Honesty, transparency, humility, integrity, respectfulness, fairness, responsibility, leadership, innovation, execution, social stewardship and enjoyable

Weaknesses

• All Dunkin’ Donuts shops are franchised which indicates every single store will have a distinct mission statement and diverse organization values. In franchises there is tiny space for creativity given that every thing is regulated by the franchisee.
• Poor choice of coffees and beverages. Lack of innovation when it comes to goods for customers
• Tiny to no discounts or coupons.
• No eCommerce. No ordering accomplished on the web or through kiosk.
• Donuts and pastries have a tendency to not taste fresh.
• Employee spend is not competitive
• Usually instances the cleanliness of the stores are subpar
• Their original glazed donuts are inferior to Krispy Kreme’s original glazed donuts

Opportunities

• Dunkin’ Donuts can switch from Franchise to a Corporation. They would advantage two fold by carrying out this. Organization philosophy and core values would be consistent throughout the majority of Dunkin’ Donut shops. And a corporation would open up much more opportunity for creativity because it wouldn’t be regulated by strict laws from the franchisee
• Offer you a far more competitive menu and train staff to make these new beverages. For instance, you can order a Frappuccino from Starbucks with ten to 12 modifications (i.e. soy milk, almond milk, coconut milk, flavor boosters, espresso shots and so on.) Dunkin’ Donuts can also offer you far more than just coffee primarily based beverages like tea and smoothies.
• Dunkin’ Donuts can begin a rewards program where consumers can purchase products when they accrue a particular quantity of points like Starbucks. Or they can post on-line coupons offering a totally free dozen or half dozen of donuts when you purchase a single dozen. Krispy Kremes does this specific promotion at least once a year and they create a high volume of targeted traffic/sales.
• Far more and a lot more retail/meals firms are implementing the use of eCommerce. At Starbucks you can purchase your order prior to you even pull to the window or counter. Ecommerce would be more handy for Dunkin’ Donut’s target marketplace. But personally I would go with having a kiosk in the stores like McDonald’s.
• Dunkin’ Donuts ought to update their equipment or supply of their merchandise so when a consumer bites into a donut or pastry it tastes like it was just produced.
• Dunkin’ Donuts can increase employee retention price and buyer service by supplying higher spend or much better benefits
• Dunkin’ Donuts should employ an employee strictly for cleaning or maintenance services. It would increase the store quality and the morale of the customers who stroll into the establishments
• Dunkin’ Donuts should implement a “hot sign” like Krispy Kreme’s to let customers know their donuts are at present. Red signage is still utilized as a advertising ploy and it still operates. If Dunkin’ Donuts improves the high quality of their donuts it may drive out Krispy Kremes.

Threats

eCommerce – companies like Starbucks and Krispy Kremes are already blowing Dunkin’ Donuts out of the water in this arena. When almost everything becomes automated will Dunkin’ Donuts nevertheless be standing? Almost certainly not regardless of being the current leader of the beverage and pastry marketplace

Mergers Between Competition – Sales have not been great for Krispy Kremes more than the final twelve years. And Starbucks is steadily rising year right after year. Even so, Starbucks has a poor selection of pastries. Imagine if Krispy Kremes merged with Starbucks. Dunkin’ Donuts would possibly go out of company.

Conclusion

I conclude that despite the fact that there are some significant weaknesses in areas that can effortlessly resolved, Dunkin’ Donuts nonetheless has a competitive benefit. For a single, Dunkin’ Donuts has established it’s brand by means of marketing its merchandise as the best (even even though its debatable) and has stood the test of time as the leader of it’s market place. When you think of donuts you either believe of Dunkin’ Donuts or Krispy Kremes. That says a lot considering that there are thousands of coffee shops across the country and the majority of the populous only think of two brands. The weaknesses (lack of creativity, inconsistent enterprise module, eCommerce and so forth.) does not outweigh the strengths on a organization scale. The rates and places of Dunkin’ Donuts has played a large component in it’s good results which is why they can nonetheless operate on a higher level and bring in greater income compared to Krispy Kremes. It is virtually like the Walmart effect, you can have inferior solution as lengthy as the price is reasonably priced or low-cost.