Dunkin' Donuts: Time to Make a Change
The environmental forces affecting Dunkin Donuts are:
Socio-Cultural- Due to the numerous cultures present in Dunkin' Donuts' target market, the company as a whole must be in continuous change in order to keep up with its consumers. Dunkin Donuts must keep in mind the age, income, occupation, and most importantly the lifestyles of their customers if they wish to succeed in such a competitive market. As an answer to this problem, the company has implemented several changes aimed at keeping and attracting a new customer base. Many restaurants are looking towards centralized kitchens to maximize space and reduce costs, consequently cutting product costs, thus saving the customer money. The restaurant chain is also adapting many of its stores to the lifestyles of many of its customers. Through renovations, customers are able to relax on comfortable couches and chairs while tuning into the daily news on televisions at any time of the day. This noticeable addition will attract those who are looking to relax as well as retain those customers who are more interested in a grab and go style system.
Economic- In order to attract and retain its customer base, Dunkin' Donuts must continuously pay special attention to the economic state of this, and every other country in which their stores are located. Because many Americans are in a position where money is tight and sometimes scarce, Dunkin Donuts has to develop a strategy where the customer's dollar can go as far as it possibly can. By offering coffee, baked goods, and a wide range of specialty goods at fairly lower prices than most of its competitors, Dunkin' Donuts is able to gain access to a wide consumer base. With the addition of their café theme, Dunkin' Donuts also allows its customers to purchase a coffee or baked good and enjoy it in the store, giving them a chance to relax, read, or watch TV, ultimately adding value to their experience. Massachusetts' franchise owners are also finding help from MassDevelopment, the state's economic development agency. Through this agency, the franchise owners are able to apply for tax-exempt loans in order to build central baking facilities. This statewide act not only helps the company but the state of Massachusetts as well.
Technological- With technology developing at such a rapid pace, it has become very important, especially for trendy café style restaurants, to keep up with this advancement. In order to attract customers, management has decided to install television sets that can be enjoyed by their customers. Because they realize many people don't have the time to sit down and read through a newspaper, Dunkin' Donuts broadcasts day-long local and world news so customers can quickly absorb any sort of news that may be important at that time. Although not mentioned in the article, many popular cafes are starting to provide wireless internet complimentary to their customers. With Dunkin' Donuts' plan towards a relaxing and inviting atmosphere, I suspect that it will not be too long before we see these Wi-Fi networks in almost every store. Also with an increase in technology, management has come up with a way to create space for additional seating as well as increase the chain's efficiency through centralized kitchens. Through these kitchens, Dunkin' Donuts can easily take advantage of the latest in baking, inventory, and transportation technology.
Competitive- In order to create a competitive advantage over similar restaurants, Dunkin' Donuts has come up with ways to add value to their product in ways that their competition has not. For starters, Dunkin' Donuts aims to sell a high quality product at lower rates than top competitors, such as Starbucks. By selling a high quality product at fairly low prices, management feels it has created a niche that will attract and retain their customers. To further compete with stores such as Starbucks, Dunkin' Donuts has and is continuing to...
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