Strategic Positioning of Dunkin’ Donuts
February 18, 2008
In the competitive world of the coffee industry, or any industry for that matter, it is essential for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts is well known by generations and loved by a growing number of customers around the world. It was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Back then, William had a simple philosophy: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores” (Dunkin’ Donuts, 2008). That philosophy still holds true today and is the foundation that has enabled Dunkin’ Donuts to grow to be the largest coffee and baked goods chain in the world. Dunkin’ Donuts offers more than a dozen hot and iced coffee beverages, donuts, bagels, muffins, breakfast sandwiches, and other baked goods. Currently, Dunkin’ Donuts has more than 6,700 shops in 29 countries worldwide. They sell more than 4 million donuts and 2.7 million cups of coffee daily (Dunkin’ Donuts, 2008). Dunkin’ Donuts is well positioned for the future. Dunkin’ Donuts mission statement is: “Dunkin’ Donuts will strive to be the dominant retailer of high quality donuts, bakery products and beverages in each metropolitan market in which we choose to compete” (Hoovers, 2008). Dunkin’ Donuts strategy is one of differentiation where they seek to make a high quality product and sell that product within a specific environment. This analysis will provide information concerning the ideals, actuals, and gaps concerning the operations and daily business practices of Dunkin’ Donuts. There are three ideals that can be incorporated into Dunkin’ Donuts operations that will lead to a more productive strategic position. The first ideal is Dunkin’ Donuts would like to become the leader of America’s largest retailer of coffee....
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