Dunkin Donuts is a global fast food American company that is based in Massachusetts. It was founded by William Rosenburg in 1950 and has since then undergone a remarkable growth. It engages in the provision of coffee and baked products in over 35 countries have put up more than 11,000 restaurants. Open Kettle had been the primary business started by William Rosenburg in 1948 then later changed to Dunkin Donuts. The company's products are in standards that are considered excellent in the fast food industry. It is planning for more and more expansion whereby more restaurants will be put up in the different parts of the world. In analysing the Dunkin Donut Company, the following need to be put into consideration; the company SWOT analysis, competition, and market segmentation.
In the SWOT analysis of the company, this is where the primary focus will be on the strengths, weaknesses, opportunities and the threats facing the company. The company strengths refer to the capabilities that can be used by the company to gain any strategic advantage. Dunkin Donuts has exhibited several strengths that have allowed it dominate in the fast food industry. The strengths include; strong niche, brand consistency, and a well-established franchise model. The strong niche has enabled the company to concentrate on making unique products adding to its competence hence more customers. Through brand consistency, people can follow on a particular product as it's well-known to them. This influences the customer loyalty increasing the number of sales hence more profit.
The weaknesses of a company refer to any limitation that may lead to strategic disadvantages. Weaknesses like localised and indirect competition face Dunkin Donuts like many other companies. Companies like McDonalds and KFC pose direct competition to this company leading to a low market share. Localized competition is also evident in areas where Dunkin Donuts has not yet been initiated hence posing a threat to its entry. In the developing economies, most of the infrastructure has not been constructed, and therefore this company has delayed its penetration into these kinds of areas.
The opportunities in SWOT analysis are defined as the favourable conditions in the company environment that enable it to strengthen its position. There are several opportunities that Dunkin Donuts Company can exploit for its advantage over its rivals. These include menu expansion where the company can always add new and unique snacks to the menu to increase sales. Another opportunity is targeting health segment where it can provide products with low-calorie levels. The income of most individuals has been growing as well as the desire to consume fast foods. This is an opportunity that the company can exploit by expanding to these regions and those parts where it has not been established.
Threats refer to unfavourable conditions in the company environment that cause harm to the company operations. Dunkin Donuts Company faces competition posed by other fast food providers. This threat reduces the market share resulting in low customer turn out hence low sales. Already established local fast food providers may hinder the entry of this company to other areas. Due to this, the company cannot expand with ease. The processing of the fast foods by a large company like Dunkin Donuts requires large volumes of raw materials. The raw materials are of high cost which sometimes poses a threat to the company.
Market segmentation refers to the act of partitioning a target market into smaller parts where the company will offer distinct products. It enables the company to establish an efficient way of serving distinct customers. Geographic segmentation is evident where the Dunkin Donut Company has developed its products to different locations to cater for its customers. Though demographic segmentation, the company has also used the knowledge about the income levels of different customers to establish its products. This is where the high-income earners are believed to be more into the fast food products which are an advantage to the company. Dunkin Donuts Company has a clear understanding of its customer segments. This has enabled it to work on quality product provision for customer satisfaction.
Competition poses a threat to any business in operation. Being a fast food provider, Dunkin Donuts Company faces stiff competition from its rivals. These rivals include; Starbucks, McDonald's, KFC and Subway. These companies have been in operation for an extended period of time, and they are all in the fast food industry. Being providers of fast food, they all target the same customers and therefore become rivals. Their existence in other countries or areas poses indirect competition to Dunkin Donut Company. They reduce the market share available for Dunkin Donut Company since they compete for the same customers. However, through its competitive advantages, this company can thrive despite the stiff competition.
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