dunkin' case
Dunkin’ Donuts Case
1- The coffee industry in which Dunkin’ Donuts and Starbucks are competing is highly competitive industry. The threats from new entry is high because there is no entry barriers, the threats from rivals is high because the main competitors are aggressive in trying to attract the customers even the small baking stores. However, Dunkin’ Donuts has a superior position because of its high quality products, the perception of being simple and easy to get, accessibility, and strong financial resources. This position makes harder for rivals to compete with Dunkin’ Donuts and its products are not easy to be substituted. (http://www.mbaskool.com/brandguide/food-and-beverages/2803-dunkin-donuts.html).
The strategic implications are :
• Temporarily stop the expansion strategy and focus on improving the quality and the verity of its coffee in order not lose against Starbucks. Because coffee is the main source of Dunkin’ Donuts stores revenue with 63%.
• Keeping the original products “ maintain the original image” and using the seasonal strategy that means to offer new products for short times.
2- Dunkin’ Donuts is using mutually beneficial partnership in order to expand. It chooses the places where they guarantee to reach wide customers base with full expression of its brand. This strategic alliance serves Dunkin’ Donuts strategy of “aggressive expansion “ by opening new stores and being available everywhere. (Compen, 2006)
3- Yes, the expansion plan in US market either though the strategic alliance or stores was successful in achieving the company vision and growing rapidly in The United States. This growth generated great revenue and enabled Dunkin’ Donuts to go overseas by franchising counting on the brand reputation. (http://www.wikiwealth.com/swot-weakness:dunkin-donuts:low-barrier-to-entry)
Strengths:
Well known brand with a good reputation.
Profitable company.
Varity of products with high quality.
Different profitable
1- The coffee industry in which Dunkin’ Donuts and Starbucks are competing is highly competitive industry. The threats from new entry is high because there is no entry barriers, the threats from rivals is high because the main competitors are aggressive in trying to attract the customers even the small baking stores. However, Dunkin’ Donuts has a superior position because of its high quality products, the perception of being simple and easy to get, accessibility, and strong financial resources. This position makes harder for rivals to compete with Dunkin’ Donuts and its products are not easy to be substituted. (http://www.mbaskool.com/brandguide/food-and-beverages/2803-dunkin-donuts.html).
The strategic implications are :
• Temporarily stop the expansion strategy and focus on improving the quality and the verity of its coffee in order not lose against Starbucks. Because coffee is the main source of Dunkin’ Donuts stores revenue with 63%.
• Keeping the original products “ maintain the original image” and using the seasonal strategy that means to offer new products for short times.
2- Dunkin’ Donuts is using mutually beneficial partnership in order to expand. It chooses the places where they guarantee to reach wide customers base with full expression of its brand. This strategic alliance serves Dunkin’ Donuts strategy of “aggressive expansion “ by opening new stores and being available everywhere. (Compen, 2006)
3- Yes, the expansion plan in US market either though the strategic alliance or stores was successful in achieving the company vision and growing rapidly in The United States. This growth generated great revenue and enabled Dunkin’ Donuts to go overseas by franchising counting on the brand reputation. (http://www.wikiwealth.com/swot-weakness:dunkin-donuts:low-barrier-to-entry)
Strengths:
Well known brand with a good reputation.
Profitable company.
Varity of products with high quality.
Different profitable