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Krispy Kreme

In: Business and Management

Submitted By ericlee
Words 438
Pages 2
* Diagnosis:
In my opinion, Krispy Kreme’s rapid expansion may be the biggest problem for them. The rapid expansion also caused its rapid fall. From the case we can see Krispy Kreme’s start to selling doughnuts in location other than its own shops in November 2000. This strategy causes the company get difficult to control the quality, freshness and the displayed of the doughnuts. This cause customs loss trusts with the brand, in the long-term, they will loss loyalty customs which would be the most significant thing for them.

* Analysis: The reason that I think the expression strategy is the biggest problem for Krispy Kreme’s can also find from the case. After it practices of selling products in other new stores and locations, the sale’s in new stores was low and its stock was overvalued. After that in May 2004, the company announces its first-ever quarterly loss. This was begin of company’s fall off. With the SWOT analysis, the strength for Krispy Kreme’s could be the strong company’s brand recognized. It is a popular brand in the U.S. and even other countries. They have their own SCM system to its franchise and company stores. The weakness is although they need to start expression, not as the strategy they were used. The opportunity should be set up new expression strategies to fit its situation. And the threat cloud be the existing firm such as its main competitor Dunkin Donuts. * Recommendations: For my recommendation, I suggest Krispy Kreme focus on two parts, firstly, diversified operation in its own store. Secondly, find more opportunities oversea. Compare to its main competitor Dunkin Donuts, they are not only serve doughnuts in breakfast. Therefore, Krispy Kreme also can serve something other than doughnuts with breakfast menu even launch and late night menu. Krispy Kreme already opened lots of oversea stores, but compare to Dunkin

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