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Submitted by raff5929 on October 6, 2007
Category: Business
Words: 1128 | Pages: 5
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Krispy Kreme Doughnuts Inc
Summary
In this SWOT analysis, I will delve into the strengths, weaknesses, opportunities, and threats that affect the Krispy Kreme Doughnuts Inc. Krispy Kreme is a highly successful company, whose main product, not surprisingly, is doughnuts. The company went public in 2000, and saw a hugely successful increase in share price immediately after.
Vernon Rudolph founded the Krispy Kreme company in 1937 in Winston-Salem, NC. The company has since become a leading specialty retailer. They produce over 4 million doughnuts each day, with over 1.8 billion doughnuts produced each year.
Krispy Kreme has company-owned, as well as franchised stores. They sell doughnuts in retail stores, supermarkets, convenience stores and other retail outlets. Krispy Kreme’s best-known product is the fresh, glazed, yeast doughnut, called the Hot Original Glazed. Krispy Kreme also produces over a dozen other varieties of yeast and cake doughnuts.
SWOT analysis
Strengths
Krispy Kreme’s biggest strength is in its product. It is best known for its best known for its fresh glazed, yeast-raised doughnuts, made from a secret recipe. The doughnuts are highly popular throughout North America, and have a mass appeal that is based largely on word of mouth and superior product.
Interestingly, Krispy Kreme’s doughnuts are so popular that Krispy Kreme is able to generate a media frenzy without using major or national advertising. Certainly, this is a major advantage to the Krispy Kreme company, as it greatly reduces the cost of advertising to the company.
As a result, the company saves major dollars each year in advertising, leading to increased profit margins. Certainly, the company’s superior product and strong brand identification both play a large role in their popularity, in addition to word of mouth advertising.
Krispy Kreme may be one of the few companies that is largely...
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