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Dunkin'donut Swot Analysis

Essay by   •  April 12, 2011  •  Case Study  •  1,376 Words (6 Pages)  •  3,607 Views

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SYNOPSIS

Dunkin'Donut now facing a problem which is the supplier cannot meet the volume promised. With no enough supply to the meet market demand, the rollout plan has to delay and even stop. Accordingly, the sales also affected by the delay of the rollout. Besides, the advertising has to revaluate. The supplier, Harold facing several problem with regard to constructing the new lines and he is confusing about how to allocate the equipment. The other problem is Harold is having difficulty with the product related problem such as copackers.

After analysis the case study we found out the main problem is Should Dunkin' Donuts continue working with Harold's Bakery Products in capturing the tremendous opportunity for bagel business? The other issues is the company have to delay the rollout plan and revaluate due to the demand excess capacity and the capability of the supplier is overestimated. In addition, the rollout plan schedule is too aggressive lead to inefficiency of the rollout plan and delay of the rollout plan is costly. The supplier problems bring a big challenge in the long term. The rumours about the US production facilities were signing long term contract with supplier will cause Dunkin'Donut hard to find new supplier in current situation.

Thus, SWOT analysis was being used to identify the strength, weaknesses, opportunity, and threats of the company's operation. By using this analysis, we get to identify how the company's operation runs and what strategies would be the best to be suggested in the alternatives. The alternatives would mainly focus on the weaknesses of the company and by utilizing the company's strength and of course the opportunity in the market, so as the threats out there. The strength the size of company, they conduct R&D and so on. The weakness is the inbound logistic problem. Opportunity is the growing of the bagel market. The threat is the rumours and the new entrants.

Based on the problem statement and the SWOT analysis we suggest two alternatives which is continue working with Harold and the other is finding new supplier. Continue working with Harold's, Dunkin'Donut will face lower risk and the cost incur is fewer since there will still have some of the product will be supply to the market. Besides, the strategy can enhance the bonding between to company through trustworthy. However, if they terminate the contract with Harold's, it may give Dunkin'Donut a new opportunity to find better supplier. Finally, we recommend Dunkin'Donut continue working with Harold since it is hard for them to find new supplier and they still have to face the risk about the rumours.

If the Harold failed to catch up then we will revaluate even hold the rollout plan until the supply problem have been solved.

PROBLEM STATEMENT

Dunkin' Donuts is already a strong brand in the morning food retail business before entering the bagel market. But now they had fallen into a hard time while expanding their business into this market. And this is the problem: Dunkin' Donuts has a supply contract with Harold's, however Harold's was unable to meet the requirements agreed upon. The inbound logistics activity of the value chain is suffering, and holding up the entire chain and rollout plan.

After considerable discussion, we come out with a problem statement.

"Should Dunkin' Donuts continue working with Harold's Bakery Products in order to capture the tremendous opportunity/ profit of bagel business?"

We will be discussing about the main issues that impact this problem in the next part of this marketing plan.

ISSUES

1. In the short term, volume promises from supplier were not being met, which was hurting the rollout plan. Harold's gave Dunkin' Donuts a standard volume guarantee, including a nine-month construction promise for new lines. This will result in customer satisfaction levels not achieving predictions, and potentially brand equity being lost.

2. It was costly to delay the rollout. Due to the incompetency of the supplier, the rollout plan needed to be rescheduled. This project was heavily invested; any unexpected lengthening this rollout would lead to company losses.

3. Harold's was already experiencing several problems with regard to constructing the new lines. Harold's was having difficulty locating the proper equipment as well as suffering product-related problems with one of its co-packer. Supplying the system long term had presented challenges as well.

4. Rumour that US production facilities

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