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Dunkin' Donuts: Betting Dollars On Donuts

1214 words - 5 pages

Case Analysis 1
Case 7: Dunkin’ Donuts: Betting Dollars on Donuts
February 16, 2010

Case 7: Dunkin’ Donuts: Betting Dollars on Donuts
Porter’s Five Forces Analysis for Coffee Industry
Porter’s five forces provide a great deal of information about the attractiveness of the coffee industry. There are many customers in the market for coffee. According to Schermerhorn, (2007) “400 billion cups of coffee are consumed every year making it the most popular beverage globally.” This is a opportunity that is shown in the coffee industry. Many customers for coffee provide a large base of revenue for the coffee selling firms.
There are a few big competitors that Dunkin’ Donuts needs to worry ...view middle of the document...

One of the ways Dunkin’ Donuts enters into strategic alliances is through lodging properties. Dunkin’ Donuts website explains that the company “ offers a variety of store models to suit any lodging property.” Since Dunkin’ Donuts is able to suit any lodging property, their goods can be sold conveniently anywhere. They aren’t limited to selling their products at regular stores. Dunkin’ Donuts also is also forming strategic alliances with entertainment and travel venues. According to an article by QSR, Dunkin Donut’s “[has] unveiled the brand’s first-ever theme park restaurant at Hershey Park, new coffee kiosks at sporting venues…and new stores at airports.” Forming alliances with these venues is a great idea. When people are visiting these locations, there are only a select number of restaurants and stores available to them.
Another way that Dunkin’ Donuts enters into strategic alliances is through grocery stores. According to Schermerhom (2007) , “Dunkin’ Donuts often partners with a select group of grocery retailers…to create a store-within-a-store concept.” This is a smart way to sell more of their products. People go into grocery stores to get their necessities and they will be tempted to go buy fresh coffee and other goods from Dunkin’ Donuts since they will see the store inside of the supermarket.
All these cooperative strategies provide a great way for the company to grow. They are involved with many different kinds of venues where people go for different purposes. All of these locations allow more financial growth from the sale of Dunkin’ Donuts products in a variety of locations.

Globalization Strategies for Dunkin’ Donuts
The globalization strategy that would best help grow Dunkin’ Donuts would be the multidomestic strategy. Schermerhom (2007) states that “a multidomestic strategy [will] try to customize products and advertising to fit local cultures and needs.” Advertising in countries varies since different countries differ in how they respond to forms of advertising. Some forms of advertising used domestically may not be appropriate in some countries. Countries’ cultures influence what types of advertising will work best there.
Dunkin’ Donuts products might also have to change depending on where the company is selling. Countries might not be used to the food and beverages that Dunkin’ Donuts sells. If Dunkin’ Donuts was to sell their domestic goods in some parts of the world, they probably would not sell a sufficient amount of the goods there. The company needs to sell goods that fit with the culture where they are selling. They need to sell food and beverages that the culture is used to consuming.
SWOT Analysis for Dunkin’ Donuts
One of the strengths of Dunkin’ Donuts is the flexibility of where Dunkin’ Donuts products can be sold. According to the news portion on the Dunkin’...

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