The article is to examine Krispy Kreme in the market as a business and its competitive nature. What makes Krispy Kreme strong? What makes them weak, what opportunities are there for improvement and what threats do they face? Yes, it is the Krispy Kreme SWOT Analysis.
Introduction
Krispy Kreme is a well-known business, which provides unique doughnuts and has a solid market. The weakness of Krispy Kreme is their ability to innovate, the opportunity to expand their market by reaching a broader audience and introducing new products. There are threats they face which come from companies such as Starbucks.
Strengths
The following list would be a brief view of the strengths and key points that make Krispy Kreme a success, strengths of the business are that which they do very well, and below are the strengths of Krispy Kreme:
- Global– The company operates in several countries and this is a strength as it not only highlights their ability to generate profit but also their contribution to various economies. Krispy Kreme operates in countries such as the United States, South Africa, Thailand, Russia, Mexico, and many more.
- Long existence– The business has been around for a very long time and that makes them reliable as it shows their journey and ability to survive in the market. Krispy Kreme has been around since July 13th, 1937, a major change occurred in their business in 2008 Jim Morgan took over and brought lots of innovation. In May 2016 JAB Holding took over and hence the rapid progression in the global scaling.
- Popularity and appeal- In many countries’ doughnuts are very popular and this is a strength for the business as they are introducing products that already market themselves. They also have an appeal such as the different types and flavors, for example, a bar-one doughnut and besides this fact people love doughnuts.
Weakness
A few areas of weakness that Krispy Kreme can work on will be listed below:
- Fragile advertising– advertising plays a big role in the clients a business attracts, unfortunately, Krispy Kreme does not have a solid media channel for advertising, or even on regular cable their adverts are not very appealing. They have a solid customer base but with the correct amount of advertising, they can attract more customers and broaden their market.
- Limit in products– Another area that may be a drawback for Krispy Kreme is the fact that they only cater to doughnuts and coffee. This factor limits them to the point that in different seasons such as the summer when people look for products to hydrate them Krispy Kreme may not be number one on the list.
- No catchy slogan– A slogan is expected to entice the reader or catch their attention, unfortunately, Krispy Kreme they do not have the best slogan to fit their valuable product. This serves as a weakness because when new customers choose between Starbucks and Krispy Kreme the slogan could be persuading the client in the other direction.
Opportunities
There are several opportunities for Krispy Kreme to make the business even more successful than they already are. The first key point would be working on their weakness while remaining consistent in their strengths. In the below list are opportunities and suggestions for improvement:
- Create a better menu– In the weakness above, it is written that there is a limit in products. This however presents an opportunity for Krispy Kreme to work on improving that factor. They could use a technique of corporate spying and monitor what other takeaway shops are doing and incorporate that, in their unique way, in their business. For example, McDonald’s has breakfast specials so Krispy Kreme could use that idea and have a cookie special or a type of muffin that is only served before lunch. Another method may be to have additional products other than doughnuts and hot beverages.
- Advertising– Krispy Kreme could improve its advertising capabilities by looking in the market at which tools can be utilized. For example, in today’s generation, the best tool is to use social media such as Twitter and LinkedIn which not only allows you to attract more young people but with LinkedIn, many corporate members are using it which allows the business to reach people who are extremely busy as well. Another method is to leverage television such as Netflix, Dstv for African countries, Showmax, and so on to market better with a better slogan and reach clients when they are at their most relaxed as well.
Threats
Threats are what may put the company at a setback or put them out of business.
Below is a list of the threats Krispy Kreme face:
- Competitors– Krispy Kreme faces a vast amount of competition from vendors such as Starbucks and Dunkin’ Donuts. This limits their room for error and also calls for continuous improvement. This is a threat from competition because as soon as they slack, they will lose customers.
- Health-consciousness- This is a threat to the company as it plays on the minds of their customers that they cannot buy too much of the products provided as it is not particularly healthy. This also brings into play that customers with sugar diabetes will not be part of the clients they can reach.
Conclusion
Krispy Kreme is a world-renowned business and possesses a good target market as part of their strength, there are however areas of improvement such as expanding their menus and getting better advertising methods. That presents several opportunities for improvement which comes with threats from competitors.
FAQs
What is Krispy Kreme’s competitive advantage?
Krispy Kreme stands out over their competitors due to the uniqueness in their product and the ingredients they have within, such as the self-rising yeast that makes the doughnut light and fluffy and also keeps it outstandingly fresh.
What is Krispy Kreme Slogan?
They have the slogan, ‘Original Glazed doughnuts ‘, which appears on the boxes in which they package the doughnuts.
Is Krispy Kreme in all 50 states?
Krispy Kreme is across 36 U.S states.