The SWOT Analysis of Krispy Kreme

The SWOT Analysis of Krispy Kreme
1.1  Strength
First and foremost, Krisp Kreme is one of the companies which provide doughnuts at earliest time since 1930s, which further indicates that it has occupied the market long time age of doughnuts. People are familiar with its brand and reputation. Secondly, it has experienced management team in back office with . In this context, it has developed series of technology to improve its processes and technology. Thirdly, Krispy Kreme has superior philosophy and vision, which leads to the result that all of their franchisees are capable to back the businesses financially with the aim to support their accomplishment and achievement on their vision (Serwer, 2003).
1.2  Weakness
Although the Krispy Kreme strives to spread and share joy all over the world, it does not cover the world map by its store. It is established in the United States in 1937, and therefore, it starts its expanding phrase. The first locations of its stores are selected in those places near to the United States, such as Europe and Mexico. About eight decades past, rarely does Krispy Kreme hold its store in Asia and Africa. In other word, the weakness of Krispy Kreme lies in its less expansion, in particular in such global environment. Compared to other doughnuts brand, it has already left behind in terms of global expansion and coverage of store.
1.3  Opportunities
The opportunities for Krispy Kreme are its great financial support. It represents that all the stores of Krispy Kreme, all the innovation made by Krispy Kreme will be supported in financial level. Moreover, in accordance with its mission, all of their franchisees are capable to back the businesses financially with the aim to support their accomplishment and achievement on their vision. It means that from the level of finance, Krispy Kreme has more opportunities for its future development (DeCelestino, 2006).
1.4  Threats
First and foremost, the low barrier to enter the industry is one of the greatest threats to Krispy Kreme. From a narrow sense, the entry into the industry of doughnuts and drinks is easy, because it does require many technologies or monetary conditions (O’Sullivan, 2005). In this context, it has many competitors in the market. From a board sense, the entry into the industry of food and beverage is not hard as well. It further leads to the situation where there are too many substitutes for doughnuts. In conclusion, from the narrow and board sense, the nature of industry is the threats for Krispy Kreme.
2.      Strategies of Krispy Kreme
2.1  How to address the Opportunities and Threats
In order to address its threats, Krispy Kreme should take advantage of its opportunities in financiallevel, and it should come up with solution to increase its competition of its own product. The innovation and development on product is the best way to reach such objectives. The experts in designing food and drinks can be invited. And the cooking process and techniques should be hugely improved in real practice. Most importantly, it should be noted that opportunities and threats can be mutually converted.
2.2 How to reduce weaknesses and exploit strengths
In terms of its strengths,Krispy Kreme is long history with reputation and brand familiar to customers. Due to the support in financial level by management and good reputation, it should make more innovative attempts and trial in creating new food and drinks. Meanwhile, they should also maintain traditional and classic products. In this way, the strengths can be retained and further developed. In terms of its weakness, Krispy Kreme has not lived up to its philosophy yet. As a matter of fact, it only spread over few regions and nations near the United States. It is suggested that Krispy Kreme should take slow and gradual expansion to other regions all over the world. It should start with the country and region similar to its culture and language.
DeCelestino, C. M. (2006). Krispy Kreme, Sarbanes-Oxley, and Corporate Greed. U. Miami Bus. L. Rev.15, 225.
Luppino, A. J. (2003). Stopping the Enron End-Runs and Other Trick Plays: The Book-Tax Accounting Conformity Defense. Colum. Bus. L. Rev., 35.
O’Sullivan, K. (2005). Kremed! The rise and fall of Krispy Kreme is a cautionary tale of ambition, greed, and inexperience. CFO Magazine.
Serwer, A. (2003). How Krispy Kreme became the hottest brand in America.Fortune148(1), 52-+.

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