Dunkin’ Donuts Essay Example

or put the company at a disadvantage in the market.

The case study reveals that Dunkin' Donuts has some weaknesses, including organizational turbulence during the merger with Baskin-Robbins. This resulted in logistical issues and resentment among Baskin-Robbins employees towards Dunkin' Donut personnel holding high-level positions, which could negatively impact the workforce's job security. Furthermore, Dunkin' Donuts relies on external suppliers as it does not have its manufacturing plant, which affects productivity and increases costs. Therefore, it would be advantageous for Dunkin's to establish its supplies to save time and cost.

Opportunities are external factors that drive a business and can be leveraged through marketing strategies. In the case of Dunkin's Donut, multiple opportunities were identified, including the popularity of their bagel brand for breakfast and lunch due to its low-fat and boiled bread product offering.

In response to the increasing recognition of the importance of healthy eating habits, individuals are selecting more nourishing alternatives as opposed to fast food options that contain high levels of fat, sugar, and sodium. Meanwhile, despite its age-old status as a beloved staple for American breakfasts and lunches passed down through generations, the bagel industry continues to expand. This growth can be attributed to the industry's continuous development of new flavors and combinations along with high-quality products which have helped sustain its popularity. According to reports from the mid-1990s, this sector had evolved into a profitable market worth US$2.5 billion.

The bagel production industry saw increased investment from many investors due to a prominent factor. As the bagel market grew, more consumers began to take notice, resulting in a chaotic production environment with numerous outlets selling the popular item. Moreover, no single company had

yet established a dominant national market presence.

Dunkin' has the chance to enter and dominate the food industry with the inclusion of manufacturing giants such as Harold's Bakery Products, Sara Lee, and Brooklyn Bagel among many suppliers who are eager to partner with Dunkin' Donuts in the bagel business. With more options available from suppliers, Dunkin' Donuts can choose the best deal in terms of price, quality, quantity, and time. They eventually settled on Harold due to their promised delivery period of nine months on new bagel production lines and co-packer relationships.

Unfavorable trends or developments can lead to decreased revenues or profits for any business, resulting in threats. Dunkin' Donuts faced competition from over 700 bagel retail outlets and wholesale bakeries in 1995, including major players such as Bruegger's Manhattan Bagel and Einstein Brothers. In addition, small chains and local stores also posed a threat to Dunkin' Donuts' market share. The high number of bagel retail outlets made the market increasingly competitive, putting Dunkin' Donuts at risk of losing customers to other outlets that offered alternative options.

Furthermore, there is a rumor that all American bagel production facilities are entering long-term supplier contracts with different companies, which will significantly limit the opportunities for additional capacity. This is due to the limited sources of the supplier, who is also supplying many other companies in the bagel-making industry. As a result, Dunkin's productivity will be affected by low supply levels when it is most needed. Finally, this highly profitable bagel business has attracted numerous new entrants with low barriers to entry in the food industry. This will pose a problem for Dunkin' Donuts as more competitors enter the

bagel industry, leading to a decrease in sales since consumers will have more choices for bagels.

Changes in consumer purchasing patterns can result in decreased sales for Dunkin's Donut and impact a company's overall sales performance.