INTRODUCTION
The objective of this study is to evaluate and assess the internal and external environment of Dunkin’ Donut. In order to do so, this study focuses on creating a SWOT table. The factors identified in the study will be along with one primary strength, weakness, opportunity and threat.
DUNKIN DONUT
External Forces
The analysis of external environment of Dunkin’ Donut is as follows;
- Legal and Regulatory
Legal and Regulatory framework has always been a threat for Dunkin’ Donut. Being an internationally recognized organization, Dunkin’ Donut takes extensive measures in its operations and properties to meet the laws and regulations of the local and federal bodies. The failure of compliance can result in serious damage to the organization and its brand reputation. If Dunkin’ Donut fails to comply, it could result in increase of expenses, generation of negative publicity as well as adverse affect on the operations (Dunkin Donut, 2012).
- Social
The constantly changing needs of the customers in the local and international market have provided Dunkin’ Donut with several opportunities to enhance its share in the pie. The aggressive strategies taken into consideration by Dunkin’ Donut clearly signal that the organization is making its way into the hearts of the customers. To meet the changes in lifestyle and trends of the customer, Dunkin’ Donut has significantly enhanced its offering (i.e. beverages, breakfasts and fresh bakery products) to attract and retain the customers in the market.
This reflects that the changes in social factor act as an opportunity as well as a challenge for Dunkin’ Donut. Opportunity in a sense; Dunkin’ Donut can target the customers of the competitors through its innovative and fresh products. However, competitors would have the same opportunity as well.
- Competition
Dunkin’ Donut operates in a highly challenging industry. To enhance its share in the pie, Dunkin’ Donut has to constantly attract customers through its strong brand name and reputation, but the competitors like Starbucks and McDonalds are constantly becoming a hurdle between Dunkin’ Donut and its growth.
Dunkin’ Donut faces stiff competition from Starbucks in the United States. With an aspiration to become the most dominant player in the industry, Dunkin’ Donut has constantly used aggressive strategies to target Starbuck’s customers. In the battle of beans, Dunkin’ Donut not only faces competition from Starbucks but also from McDonald. This reflects that Dunkin’ Donut has a long way to reach its vision. The rise in competition in the industry clearly indicates that competition is a prominent threat for Dunkin’ Donut (Glover, 2009).
- Innovation
Innovation in terms of processes and products resulted in strong sales of beverages, strong breakfast sandwich sales as well as growth in the sales of sandwich bakery. In addition, the continuous efforts towards product innovation have allowed Dunkin’ Donut to continually strengthen its position and market share. The charcoal donut recently introduced by Dunkin’ Donut is one of the product innovations to attract customers in the market (Castillo, 2013). In addition, the use of social media has also helped Dunkin’ Donut to enhance customers’ engagement along with customer satisfaction level. This clearly reflects that constant innovation has always been an opportunity for Dunkin’ Donut.
Internal Forces
The analysis of internal environment of Dunkin’ Donut is as follows;
- Goals
The goals and objectives of Dunkin’ Donut have always been crystal clear. Dunkin’ Donut aims to become the most dominant player in the local and international QSR industry, while providing the customers with fresh and superior products from time to time. In terms of marketing goals, Dunkin’ Donut has outlined specific goals i.e. increasing store sales, brand differentiation, increasing sales of coffee and beverages, increasing as well as protecting the morning day part sales while focusing highly on the afternoon sales. In addition, Dunkin’ Donut also has clear goals regarding the support and assistance to its franchisees in the international market (Dunkin Donut, 2012).
With clear idea regarding the direction of the company, Dunkin’ Donut has significantly enhanced its strength. This reflects that Dunkin’ Donut has clear idea of ‘where to go’ and ‘how to get there’, which is eventually a dominant strength of the organization.
- Technology
Dunkin’ Donut is a well-established and well-recognized organization that utilizes potential technological innovation to its advantage. For instance, the rise of mobile technology for the launch of its new loyalty program provided Dunkin’ Donut with an opportunity to engage customers on much deeper level. The speed and convenience for the customers through the newly introduced mobile application along with the use of social media networking sites (i.e. Facebook, Twitter and YouTube) allowed Dunkin’ Donut to enhance its sales and revenues along with customer’s engagement and customer’s satisfaction. The use of technology for the optimum advantage of Dunkin’ Donut clearly indicates that technology has become core strength of the organization.
- Strategic Capabilities
The strategic capabilities of Dunkin’ Donut could be reflected through the utmost attention and focus on menu innovation, marketing, franchisee support and coaching, along with other initiative to enhance the growth of Dunkin’ Donut. In addition, the limited capital invested by the company has allowed Dunkin’ Donut to enhance and grow its point of distribution in the local and international QSR industry.
The initiation of loyalty program through the mobile application received significant importance by the customers. The mobile application was downloaded more than 1 billion times in the year 2012 and Dunkin’ Donut is aiming to double the number of downloads in the year 2013 (Dunkin Donut, 2012). This clearly reflects that the strategic capabilities of Dunkin’ Donut are clearly strength rather than a weakness.
SWOT Analysis
The analysis of internal and external environment at Dunkin’ Donut provided significant insights. The SWOT analysis of Dunkin’ Donut on the basis of information gained is as follows;
CONCLUSION
In the battle of beans, Dunkin’ Donut has been outclassed by Starbucks and McDonald. To enhance its position in the coffee industry, Dunkin’ Donut must focus on the cost associated with the coffee beans. In addition, Dunkin’ Donut must also ensure acquiring the local bakeries and cafes that are indirectly affecting the sales of the business.
References
Castillo, I. (2013). Ever Tried A Charcoal Donut Before?. Lost at E Minor, Retrieved October 9, 2013 from http://www.lostateminor.com/2013/09/19/ever-tried-a-charcoal-donut-before/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+LostAtEMinor+%28Lost+At+E+Minor%29
Dunkin Donut. (2012). Annual Report. Retrieved October 9, 2013 from http://files.shareholder.com/downloads/ABEA-68SCR9/2556218952x0x650114/408603D0-6E62-422F-AB40-3A7C89686005/DNKN_2012_Annual_Report_Final_.pdf
Glover, K. (2009). Starbucks, Dunkin' Donuts, McDonald's: Coffee Rivals Fight Breakfast War. CBS News, Retrieved October 9, 2013 from http://www.cbsnews.com/8301-505123_162-33140432/starbucks-dunkin-donuts-mcdonalds-coffee-rivals-fight-breakfast-war/
