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KRISPY KREME DOUGHNUTS
Krispy Kreme Doughnuts, Inc. is a specialty retailer of doughnuts. The company's business owns and franchises Krispy Kreme doughnut stores, where it makes and sells over 20 varieties of doughnuts, including its signature Hot Original Glazed and nine other varieties. Each of its stores is a doughnut factory with the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. The Company also sells in its stores drip coffee, other beverages, other bakery items and collectible memorabilia such as tee shirts, sweatshirts and hats. As of February 2, 2003, there were 276 Krispy Kreme stores, of which 270 were located in 37 states in the continental U.S., five were located in eastern Canada and one was located in Australia. The Company also accomplishes off-premises sales through its direct store delivery system.
Krispy Kreme's success has left many in awe. This case will talk about how Krispy Kreme has been so successful using internal and external analyses and will also take a look at its competitors. Financial reports will be used as a benchmark to measure success.
The analysis will focus on product diversification as a measure of securing market position and sustaining a competitive advantage.
Strengths:
1. Nationally known celebrity brand of doughnuts
2. Honest and old-fashioned company, using original recipe and 50¡¦s restaurant interior design
3. Doughnuts made fresh everyday and served hot
4. Company values held the same as when founded in 1937
5. Doughnut-making theatres, customer can see how the doughnuts being ...