Analysis of Krispy Kreme Doughnuts 2008 Case Study

Topics: Marketing, Risk, Management Pages: 3 (637 words) Published: September 17, 2010
Critical risks:
EFC’s management understands that there are critical risks that involved in entering a market with several competitors, but the company believe that their handmade products can successfully compete. EFC has reviewed the risks and have planned accordingly, preserving a low risk status through frequent assessment of market risk the company has allocate number of departments to evaluate risk and divers it. Price Cutting by Competitors

Customers buy their products based on the quality and the price. Therefore, if EFC has notice that any of their competitors cut the price and the quality is still as good as their products than EFC will take action either decrease the price or do a promotion.

Poor Quality Marketed by Competitors
Advertising, promotion, and demonstration techniques will be used to ensure that consumers differentiate our company's product from others. Difficulties Encountered in the Supply of Raw Materials

If domestic supplies of common types of plastic,papers,glasses cannot be met economically, raw materials will be purchased through import wholesalers and brokers. The price will be revised accordingly and accepted because of efficient previous market penetration. Larger-Than-Expected Innovation and Development Costs to Stay Competitive The development plan will be re-evaluated, and, if appropriate, the partnership will be opened to another financing round.

Potential Risks
Unavailable or scarce raw material
* EFC is confident that it has secured good availability. Technology employed may be unreliable or unproven
* EFC will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology. There may not be a market for the Company's products

* The Industry-wide experience of the Management Team has allowed them to identify markets for the Company's products. Their expertise and reputations...
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