When it comes to strategic management, a SWOT analysis is an important tool for management to use. It allows them to evaluate their strengths, weaknesses, opportunities, and threats compared to their internal and external environments. When it comes to Krispy Kreme, their SWOT analysis showed some interesting points. Some of their strengths were great brand recognition, centralized manufacturing, effective supply chain management, and the “donut theatre” experience. When it comes to brand recognition, everyone knows who Krispy Kreme is and what they do. From a marketing standpoint, this is very a very important hurdle to jump, because companies won’t survive if consumers don’t know who you are. Centralized manufacturing and effective supply chain management allows them to vertically integrate all aspects of the business “in-house”, which lowers costs for them. The “donut experience” is important because it allows consumers to have fun and see their food is made fresh.
Even though they have some strength’s, they have some heavy weaknesses. One is a decline in sales and a heavy debt to equity ratio. This scares investors form investing in them which would give them the resources to move into new markets. The single product focus is probably their biggest weakness, because these types of companies only last for a little while. You have to diversify a little to survive. Slow movements into international markets has been a big problem, because their competitors already started over seas, but Krispy Kreme has failed to do so, resulting in lost market share. Finally, the idea of rapid expansion has hurt them, because they forgot about the stores they already have, which results in poor performance.
Krispy Kreme does have some opportunities though. One of them being offering premium coffees and beverages. This would allow for a multi focus approach and increase sales. Secondly, healthier donuts would help because regular donuts are seen as bad for you...
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