Krispy Kreme SWOT Analysis

{ Posted on Jun 26 2010 by adam | 13,789 views}

Strengths

• KKD produces approx 5.5 million doughnuts a day consisting of over 20 categories.

• KKD doughnuts are available in super markets, grocery stores convenience stores, gas station, Wal-Mart and Target stores.

• KKD has 395 stores with the presence in 40 states on USA and in 10 foreign countries.

• KKD provides best quality doughnuts to the customers.

Weaknesses

• Fall in revenues and profits since year 2008.

• Major reduction in stock price after year 2005.

• KKD profits are in negative.

• Randomly closing and opening of new stores.

• Weak business in International market.

• Strong competition for Dunkin doughnuts and Starbucks.

• Several lawsuits against the company in the past

• Weak position in UK and Spain in term of revenues.

• Franchising business is not doing well.

• KKD does not have an updated register Uniform Franchise opening circular which prevents it from offering franchises to new franchisees.

Opportunities

• Joint ventures in other countries for expansion.

• Entrance into new markets

• Increase number of domestic stores

• Improve franchise business

• Opening of new stores in Japan and Spain and increase number of stores in the countries where they are currently operating.

• People are becoming health conscious so KKD should find a way to reduce calories in existing products and offer something new to the customers

Threats

• Majority of people in USA and UK are concerned about their weight.

• People are well aware of the fact that sweet food contains more calories which will result in variety of diseases.

• Strong competitors domestically and internationally

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