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SWOT of Dunkin Donuts

SWOT Analysis of Dunkin-Donuts
BusinessManagementMarketingSWOT & PESTLE 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

by Shamsul November 13, 2020

 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

Dunkin Donuts is one of the most valuable fast-food chains in the world. Their coffee and baking items are scrumptious and famous globally. It is one of the most functional chains globally with 13000 stores. You can learn a lot from Dunkin Donuts SWOT Analysis (strengths, weaknesses, opportunities, and threats of Dunkin Donuts). Its current CEO is David Hoffman and it was founded in 1950.

 

Name: Dunkin’ Brands

Founded: 1950, Quincy, Massachusetts, United States

Founders: William Rosenberg

CEO:  David Hoffmann (Jul 11, 2018–)

Head office:  Canton, Massachusetts, United States

Type: Subsidiary

Category: coffeehouse, Food and beverage

 Area Served: World Wide Franchise

Industry:  Food and beverage, coffeehouse

Number of locations: (2019) 9,630 restaurants in the USA and 3,507 units internationally

Division and Subsidiaries: Mister Donut, Dunkin Donuts Canada Ltd.

Employees (July 2020):  1135,300

Annual Revenue (2019):  US$ 1.37 billion

Net income | Profit (2019):  US$ 242.02 million

Products:  Hot beverages | Baked goods | iced beverages | frozen beverages | Soft drinks    |sandwiches

Dunkin Donuts Competitors: Starbucks | Einstein Bros Bagels | Peet’s Coffee & Tea | Caribou Coffee | Au Bon Pain

 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

 Strengths of Dunkin Donuts:

 

  • Worldwide Operations:

They can earn more profit and market reach with its effective worldwide operations. Dunkin Donuts has currently 13000 stores in nearly 46 countries of the world. It emerges as the world’s largest coffee and baked goods chain.

  • Ideal Positioning:

Dunkin Donuts is highly famous due to its breakfast offerings. They achieve this position due to their go-to breakfast options. This thing makes them strong and effective against their rivals or competitors.

  • Excellent Franchise Policy:

The strong franchising model of Dunkin Donuts has enabled them to fight with any crisis. That’s why they work with the same productivity and efficiency in the global crisis.

  • Society-Centric Approach:

Community-centric policies are highly effective for any company. Even in the crisis and pandemic, they still announced that they are hiring 25000 new workers to fulfill their promise to keep the US working and running.

  • Effective Branding:

With 70 years of work, Dunkin Donuts always in touch with the needs of consumers. They take appropriate decisions for the benefit of their consumers and employees. That’s why they are still going strong with the assistance of effective marketing.

  • Strong Supply Chain Management:

They always ensure the supply of fresh and tasty goods to their customers. They are also working to improve the quality of their products in order to compete with their rivals. This kind of policy is the major strength of Dunkin Donuts.

  • Eco-friendly Strategies:

As the demand for health-conscious products is rising, Dunkin Donuts also work in this sector and climate change. They also adopt eco-friendly strategies to lessen the carbon footprint. They also changed their polystyrene cups to paper cups for this purpose.

 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

Weaknesses of Dunkin Donuts:

 

  • Overdependence on the US:

In 2019, nearly 47 percent of their revenue is generated from the United States segment which clearly shows that they heavily depend on this market. If the US faced any global recession or crisis, it will cause a bad impact on the company. This is the main weakness of Dunkin Donuts.

  • Slower Growth:

Like McDonald’s and Burger King rapidly growing and working in the world, but Dunkin Donuts is really slow in this segment. They adopted slower development strategies that can harm the company’s profit and global expansion. This kind of snail-paced growth is a major weakness of Dunkin Donuts.

  • Poor Strategies Outside the US:

As a matter of fact, Dunkin Donuts is working very efficiently across the US, but its global operations and working are very slow. The reason behind this is a poor strategy outside the US. They are struggling in emerging markets like India. This thing is really dangerous for the image of Dunkin Donuts.

  • Deficiency of Variety:

Their main menu is based on coffee and some bakery items which makes it vulnerable in front of their competitors who are offering a vast variety of products. That’s why most of their customers are moving towards other fast-food restaurants.

  • Weak Financial Capabilities:

In order to compete with marketers, a company needs huge financial resources. But Dunkin Donuts is also struggling in this sector that’s why they are facing problems in global operations and working.

 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

 Opportunities of Dunkin Donuts:

 

  • Provide Healthier Deals:

As Burger King offers healthy plant-based products, Dunkin Donuts should think about similar products and items. In this way, they can earn more profits and market reach as compared to their competitors like McDonald’s and Burger King.

  • Increase Market Reach:

Dunkin Donuts has the ability to cater to more customers and earn profits by expanding its market presence. They should increase their stores in different countries of the world and services to get the attention of people.

  • Diversify Revenue Games:

Investing all the money in one sector can be drastic for a company. Dunkin Donuts should invest its resources in different sectors like grocery and fresh farm products in order to get massive profit and revenue.

  • Focus Emerging Markets:

Emerging markets like Asia, Africa, Latin America, and so on, Dunkin Donuts should target these sectors in order to diversify their working. They can earn a big portion of revenue from these emerging markets by offering good quality products.

  • Provide More Variety:

As we mentioned earlier that Dunkin Donuts lack varieties in their menu. They can include a lunch and dinner menu along with breakfast in order to attract new and existing customers.

 

Dunkin Donuts SWOT Analysis | SWOT of Dunkin Donuts

Threats of Dunkin Donuts:

 

  • Stiff Competition:

Dunkin Donuts is facing stiff competition from its rivals such as Starbucks, Pizza Hut, McDonald’s KFC, and Burger King. They can threaten their revenue system.

  • Intrinsic Problems in Franchising:

Even though franchising strategies are internal matters of any company, but Dunkin Donuts is facing severe franchising problems from owners. This thing also damages the company’s operations and work.

  • Recession and Global Pandemic:

With rising recession problems, many companies facing problems in these crises and pandemic. These things also damage the Dunkin Donuts revenue game and work.

  • Rising Health Concerns:

As the number of health-conscious people is increasing, most of the consumers cut down the consumption of fast food. As Dunkin Donuts offers unhealthy and junk products, that’s why it may face trouble in near future.

  • Strict Regulations:

Most of the governments are adopting healthy policies in terms of food. That’s why Dunkin Donuts may experience problems from these regulations which cause a loss in profits and revenues.

  • Increasing Costs:

As the cost of raw materials is increasing, it is really hard to manage expenses. There are several factors like climate change and the costs of logistics can threaten the company’s profits.

 

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November 13, 2020 7 comments
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