Krispy Kreme Donuts
Analysis of Competitive Profile Matrix (CPM):
If we look at the scores of the critical success factors in the competitive profile matrix (CPM) we can find that Krispy Kreme Donuts has to gain competitive advantage by adopting a strong advertising technique, providing a competitively better product quality and creating a strong customer loyalty for its customers. Apart from this the CPM matrix states that the company requires a global expansion plan to increase its effectiveness with more strength and along with this the company needs to improve its sales distribution channel to become competitively stronger.
Although the company has mentioned this improvement in its objective but in order to gain early advantage it will have to achieve this objective more quickly to become number one in the industry. The main competitors of the company are Dunkin' Donuts and Starbucks.
Analysis of External Factor Evaluation (EFE):
If we look at the external factor evaluation we can find that the biggest opportunity for Krispy Kreme Donuts is to gain advantage of Starbucks weakness of lacking in diversified and distinctive pastry line and Dunkin' donuts weakness of not having hot doughnuts to sell. Apart from this the company needs to gain advantage of opportunity where the families crave convenience because of busy lifestyles.
The biggest threat for the company is the dominance of Dunkin' Donuts in North eastern US. Also competitively lesser number of stores worldwide is a threat from Starbuck with almost 4 times more stores world wide as compared to the company. Also low return and dividend to shareholders can be threat for the company if things don't improve the company can be a sweet target for takeover. Apart from this increasing health consciousness among people is becoming a rising threat for the company.
Analysis of Internal Factor Evaluation (IFE):
If we look at the internal factor evaluation (IFE) we can find that the biggest strength for the...