MGT 300 Case 7: Dunkin' Donuts: Betting Dollars on Donuts
1. What does a Porter's Five Forces analysis reveal about the industry in which Dunkin' Donuts and Starbuck's compete and what are its strategic implications for Dunkin' Donuts?
Answer: I think in this case, it reflects the level of rivalry among organizations in an industry, the potential for entry into an industry and the threat of substitute products. First, the Starbuck and Donuts they are all belongs to coffee market and they competing each other. And about the second factor, the Dunkin Donuts enter the coffee market is later than Starbuck, but more and more competitors enter this industry make the industry profits lower. Although there have a huge coffee market in the world each year, but there absolutely have some other new substitute products enter it. Such as Nescafe and McDonald's coffee. But in many consumers' heart, they just wish to buy only two types of coffee, regular and decaf. But only Dunkin' Donuts does. This represent its quality is high. This means the Dunkin' Donuts use niche strategy to earn a big potential market share. The strategic implication for Dunkin' Donuts is they need use some SWOT analysis to find some more profit space.
2. In what ways is Dunkin' Donuts presently using strategic alliances, and how could cooperative strategies further assist with its master plan for growth?
Answer: Dunkin' Donuts often partners with a select group of retailers-such as Stop & Shop and Walmart. This activity has found another new market in those people who need to have a rest in shopping. The cooperative strategies is very useful in fierce market, it can low the cost of open new coffee store and acquire more profit.
3. Do you see evidence of strategic leader-ship in Dunkin's U.S. expansion plans? If so, how?
Answer: Yeah, there have a lot of evidences to show the importance and effectiveness of strategic leader-ship in Dunkin's U.S. Such as this company use the...
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