Krispy Kreme Doughnut Swot Analysis

1443 words - 6 pages

COMPANY ASSESSMENT

Company Background

In 1933, Vernon Rudolph and his uncle purchased a small doughnut shop in Paducah, Kentucky. This doughnut shop was owned by a French chef named Joe LeBeau. Chef LeBeau had a secret doughnut recipe that he included in the sale of the shop. This recipe that Vernon bought is used to make those wonderfully delicious glazed doughnuts that Krispy Kreme is known for world wide. In 1937, Vernon decided to settle down in Winston-Salem, North Carolina, and on July 13, 1937, he opened the very first Krispy Kreme Doughnuts. At first, Vernon baked his doughnuts and sold them to local grocery stores, but soon people began lining up outside of his shop so they could purchase fresh, hot, glazed doughnuts from him directly. As the years progressed, more Krispy Kreme stores opened, but something was different among them. The problem was that consistency of the doughnuts from store to store was not the same. To fix this set back, Vernon decided to build his very own mix plant where he would make all of the dry dough. This dough was then shipped to every Krispy Kreme store, so that every doughnut would be exactly the same. Vernon also had Krispy Kreme build all of its own doughnut making and glazing machinery which helped to keep the doughnuts identical from store to store. As the years passed, Krispy Kreme started to grow and expand rapidly. By 1999, Krispy Kreme was a national corporation; they had stores from New York City to Los Angeles. In 2001, Krispy Kreme went international when they opened their first store in Canada. Currently in 2014, Krispy Kreme Doughnuts has 748 stores in twenty-two different countries. Little did Rudolph Vernon know that his small investment in Paducah, Kentucky would one day turn into a multimillion dollar, international-corporation that is now known as Krispy Kreme Doughnuts.
Product Line
Krispy Kreme Doughnuts offers a wide variety of doughnuts, coffees, drinks, and Kool Kreme. For a full menu and prices (see Appendix A). The doughnut is Krispy Kreme’s most popular product. These delicious doughnuts are made from Joe LeBeau’s secret recipe. Many people have tried to duplicate this recipe without success. Todd Wilbur believes that a low-gluten flour is used to make the doughnuts so fluffy and delicious. A person can choose from forty different types of doughnuts, and the doughnut flavors range from the original glaze to New York cheesecake. Also, a customer may be able to purchase specialty flavors depending on the time of year. For example, the Key Lime is one of the specialty flavors that is available right now. Internationally, each country that Krispy Kreme is in has a specialty doughnut that is unique to their own culture. For example, in Thailand, they serve the “Vanilla White Chocolate Mocha. White Chocolate coating, Mocha KREME™ Filling, Dark Chocolate drizzle, Milk Chocolate drizzle and a Chocolate coated coffee bean. Available seasonally.” By doing these specialty doughnuts...

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