Dunkin Donuts SWOT Analysis
Dunkin’ Donuts is known for the large variety of doughnuts, flavors and other baked items like donut whole treats, bagels, muffins and munchkins etc. The products of the company are available at more than 6,590 outlets and franchises in more than 4,815 alone in the United States of America.
Dunkin’ Donuts was founded in the year of 1950 and has today expanded its operations in many countries of the world. The company is now one of the largest baked goods and coffee chains in the world. According to a survey the company sells more than 4 million doughnuts and about 2.7 million coffee cups every day.
Dunkin’ Donuts has established a good reputation over the last five decades for brewing high quality and tasty coffee. In the America, Dunkin’ Donuts is the largest retailer of coffee-by-the-cups and serves nearly 1 billion brewed coffee cups each year.
The company is known to be using hundred percent original Arabica coffee beans to make delicious coffee. The special ingredient is known by the food industry as a superior grade of coffee.
The company to develop more loyal customers as well as to retain the customers offers discount cards and special deals coupons.
Dunkin’ Donuts does not spend much for marketing its products and on media advertising while its competitors do.
The price of different ingredients and raw materials especially high quality coffee beans is increasing. Also the company needs to introduce low calorie doughnuts and other food items.
Consumption if Coffee is ion a constant increase in Asia as in these countries the disposable incomes of the people are increasing and they are spending more on hot and baked items. One such country that has a large potential market is China. Furthermore, there is an increase in demand for doughnuts and similar baked items in Singapore, Malaysia and Taiwan.
With rapid globalization, the services have also become quicker and flow of information is easier. Due to this the Dunkin’ Donuts is now able to serve the customers better. Dunkin’ Donuts has established and positioned itself as a quick stopover to have great snacks and beverages.
With the growing western influences and increasing acceptance of western trend among the youth is another opportunity that can result in greater market share of the company.
The recession is again an opportunity for two reasons. First the company offers comfort foods that are warm and sugary and also that snacks and baked foods are cheaper as compared to other food items.
The growing trend of a healthier lifestyle being adopted by the people is a threat as they try to avoid the high calorie or sugary food.
Starbucks and McDonalds are its main competitors that offer similar kind of food items and snacks and there is a chance of customers switching to other food products. Another major competitor and hence threat for the company is Krispy Kreme that can cause a large reduction in the market share of Dunkin’ Donuts.
The entry barriers are low in the coffee, doughnut and baked items industry. Even the local bakeries and coffee shops are a threat for the company.
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