Krispy Kreme

Strengths:
 Production of 5.5 million doughnuts a day consisting of over 20
categories

 Easily available in super mart, grocery stores, convenience store, gas

station, walmart and target store.

 More than 395 stores with presence in 40 states of USA and 10 foreign
countries (large presence and established national brand ).

 Vertical integration.

 Large production capacity at store from 4000 dozen to 10000 at every

store.

 One – of – a kind of Krispy Kreme Doughnuts.

 Doughnut making theatres to watch actual doughnut making process.

 Due to fundraising strong Brand recognition and reputation.

 Strong Channel of Distribution and centralize supply chain.

 Weaknesses:

 KKD became the target of a federal criminal inquiry in 2005 which affects
their brand reputation.

 Offering high calorie doughnuts while comparing to their competitor

Dunkin Donuts.

 KKD only covers a small international market instead of covering the

most like Asia and Middle East on the top.

 Revenues are results in net losses in past 3 years.

 After the major reduction in stock prices after year 2005 they are still not
being able to cover it.

 Randomly closing and opening of new stores.

 High prices in some areas.

 Heavy dependency on doughnut sales.

 The company is going very fast, that makes it really harder to control
the operations and track the external environment.

 Corporate structure ….
 Opportunities:
 Asia and Middle East are the market to conquer.

 Improve franchise business.

 Diversify their product line.

 KKD should offer low calories in existing products because

people are becoming health conscious.

 Channel expansion possibilities i.e.: Internet pre-ordering

 Joint ventures in other countries for expansion

Threats:
 Competitors like Dunkin Donuts, Starbucks and Tim Horton’s.
 Faces cultural differences in United Kingdom.

 People become health conscious in UK and USA.

 While comparing KKD with DD, Dunkin Donuts have presence

world wide with 7000 stores on 2007.

 Restricted cash flow from bank.

 European prefers their local brand products.