Krispy Kreme Doughnuts Inc.

Paper Summary:

This paper explains that the three main strategic issues that Krispy Kreme will need to evaluate are its low degree of diversification, international expansion, and its distribution system, including franchising. The author points out that Krispy Kreme's greatest strength is its enthusiastic and loyal customers who have been developed through word-of-mouth publicity rather than traditional advertising. The paper relates that the most serious competitive threat is from Dunkin Doughnuts, which is the well-established market leader, known for both its wide variety of doughnuts and for excellent coffee.

Table of Contents
Introduction
Strategic Issues
Internal Environment - Strengths and Weaknesses
External Environment - Opportunities and Threats
Recommendations

From the Paper:

"The third strength I have noticed in the case study is that the company seems to have a sound financial situation. Indeed, the IPO in 2000 raised enough cash to pay off debts and now the company can focus on its expansion. Of course, it has decided to cease paying dividends in the period to come, which I have considered a weakness and will discuss it further below, however, it is obvious that the company has no financial problems and that it can concentrate on its expansion."

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