Dunkin Donuts (Essay Sample)

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Dunkin Donuts
Dunkin Donuts is a well established company that operates in the foods and beverages industry where it supplies lots of foods that are consumed globally. According to Bussing-Burks (28), it is a firm that competes with the likes of Starbucks and Krispy Kreme in the coffee and doughnut businesses respectively. There are various branches and outlets of this company both in the United States and elsewhere in the world. It has managed to open and operate more than 1500 restaurants that are located in 37 countries worldwide. The tremendous growth illustrates the level of commitment that the management has put in place to see at it that the business moves to the next level.
The industries in, which this firm operates, are quite competitive since there are many players each with a different approach thus making it hard for Dunkin Donuts to control a large market share according to the aspirations of the management. There are numerous key factors that have led to the success of this firm. One of them is the idea of ensuring that the management and personnel hired are of the required skills, which makes it possible for the firm to integrate its core values and business principles into them thus translating to tremendous levels of success. The other factor is the quality of products and services rendered by this company.
The firm has always been preparing top quality products, which when combined with adequate and sufficient customer service translates to the success being witnessed up to this moment (Bussing-Burks 137). Dunkin Donuts is known for its extensive efforts in product promotions that include mechanisms like personal selling, advertising, and exhibitions. These promotions have been and continue to be instrumental in scaling up the volumes of sales thus triggering the firm into success.
The industry remains quite competitive thus requiring the company to devise numerous mechanisms that can help it to contain the threat brought about the availability of competition from other companies. Competitor rankings and competitor rankings strength chart reveals the nature of competition in the industry. The firm has identified seven success factors that result to areas that result in enormous competition in the foods and beverages industry. These include market share, distribution, brand image, product quality, product variety, patents, Research & Development, and financial resources.
The management of this firm ensures that these factors are assigned weights that reveal their significance when it comes to ranking to reveal the way the strategy has to be formulated to counter the influence of competition in the industry (Gopinath and Julie 86). These weights are judgmental and subjective thus making them temporary since they can easily change depending on the point of view of the managements. A strength ranking is assigned to each key success factor ranging from the strongest to the weakest. An example of this can be a situation where the number of outlets that a firm has can be used to determine its distributional strength. The chart below compares Dunkin Donuts to Starbucks and Krispy Kreme, which are the direct competitors since they operate in the same industry.
Dunkin Donuts CompanyStarbuckscompanyKrispy KremecompanyKSFImportance weightStrength ratingFirm ratingStrength ratingFirm ratingStrength ratingFirm RatingMarket share0.254.01.03.00.81.50.4Distribution0.23.00.64.00.82.50.5Brand 0.164.00.63.90.62.00.3Product quality0.133.00.42.80.41.60.2Product Variety0.115.00.63.90.43.00.3Patents0.084.00.34.00.32.00.2R &D0.044.00.24.00.22.00.1Financial resources0.035.00.24.00.13.00.1Overall1.03.83.62.1
The results in the table above can be plotted on a chart that shows the strength of competitors and factors leading to the same. It follows that Dunkin Donuts is well placed to counter the competition in the market thus leading to sustainability and profitability.
An analysis of the five forces outlined in Porter’s model reveals the organization of Dunkin Donuts’ desire to continue fighting for the control of the market. The first aspect of this model is all about the bargaining power of suppliers. The firm is operating in an industry where it has many suppliers of the required raw materials (Schermerhorn 213). It, therefore, implies that these suppliers have limited influence in dictating the flow of activities in this firm since the firm can decide to deal with other suppliers. There is always a threat resulting from potential entrants in the food and beverages industry since food is considered to be essential products where many firms wish to venture. It means that Dunkin Donuts has to be extremely careful not to lose its market to potential entrants.
There is a threat resulting from substitute products in this industry. A company like Starbucks is working hard to snatch coffee customers from this company hence signifying the ease of substitution that the coffee made by this company faces in the market. The bargaining power of customers is quite average in this industry since firms can still increase their prices and get an increased number of customers. It implies that the customer loyalty, marketing, and service delivery play role in reducing the bargaining power of customers (Gopina...