SWOT Analysis of Dunkin’ Donuts: Betting Dollars on Donuts
Case Study 4: Dunkin’ Donuts: Betting Dollars on Donuts
Dunkin’ Donuts has a history of offering simple and straightforward morning snacks which has given it its competitive advantage. They are one of the world’s largest Coffee and baked goods chain. Dunkin Donuts is working to grow in all directions. They now have almost 6,400 outlets, with most of them being in the northwest, they are looking to pop up on every corner throughout the rest of the country. The shops are not only found in the United States, but they have managed to open up internationally with 2,440 shops in 31 different countries.
The Porters’ Five analysis reveals that Dunkin Donuts is in direct competition with Starbucks. Some 400 billion cups of coffee are consumed every year, and Dunkin Donuts and Starbucks are competing for the Coffeehouse storefront. While Starbucks drives tastes for upscale coffee, Dunkin Donuts is, “betting dollars to donuts,” that consumers nationwide will embrace its reputation for value and simplicity. With Starbucks and Dunkin Donuts being so aggressive there are not many competitors who have enough resources to compete in the coffeehouse marketplace. When places like McDonalds started offering Coffee along with their breakfast menus, Dunkin Donuts was faced with the challenge of the morning meal market, they made an update and added to their donuts, with bagels and croissant-based breakfast sandwiches, and an oven toasted line including flatbread sandwiches and pizzas. They have also begun shifting their donut production from individual stores into centralized facilities that have the ability to serve up to 100 stores, giving them the ability to influence price and production. Starbucks and Dunkin Donuts both have their own customer base, each having unique items. Dunkin Donuts focuses on offering simple and straightforward morning snacks, which has given them the competitive advantage of distinction as the “anti-Starbucks- earnest and without pretense,”
Dunkin’ Donuts has a history of offering simple and straightforward morning snacks which has given it its competitive advantage. They are one of the world’s largest Coffee and baked goods chain. Dunkin Donuts is working to grow in all directions. They now have almost 6,400 outlets, with most of them being in the northwest, they are looking to pop up on every corner throughout the rest of the country. The shops are not only found in the United States, but they have managed to open up internationally with 2,440 shops in 31 different countries.
The Porters’ Five analysis reveals that Dunkin Donuts is in direct competition with Starbucks. Some 400 billion cups of coffee are consumed every year, and Dunkin Donuts and Starbucks are competing for the Coffeehouse storefront. While Starbucks drives tastes for upscale coffee, Dunkin Donuts is, “betting dollars to donuts,” that consumers nationwide will embrace its reputation for value and simplicity. With Starbucks and Dunkin Donuts being so aggressive there are not many competitors who have enough resources to compete in the coffeehouse marketplace. When places like McDonalds started offering Coffee along with their breakfast menus, Dunkin Donuts was faced with the challenge of the morning meal market, they made an update and added to their donuts, with bagels and croissant-based breakfast sandwiches, and an oven toasted line including flatbread sandwiches and pizzas. They have also begun shifting their donut production from individual stores into centralized facilities that have the ability to serve up to 100 stores, giving them the ability to influence price and production. Starbucks and Dunkin Donuts both have their own customer base, each having unique items. Dunkin Donuts focuses on offering simple and straightforward morning snacks, which has given them the competitive advantage of distinction as the “anti-Starbucks- earnest and without pretense,”