Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version
Dunkin' Donuts is exploring various methods of increasing distribution. Possibilities involving new outlets include area development contracts, subfranchising, regional rollout strategies, and an increase in company owned stores. Possibilities focusing on existing shops include sales of branded products through convenience stores and satellite (non-producing) retail outlets. The case provides consumer data and detailed information about regional differences, franchise relations, and shop operations. Raises issues relating to both strategy formulation and implementation in a franchise system and requires the student to analyze the interaction between the structure and management of a franchise system, and how they both relate to the market.
Swot Analysis of "Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version" written by Patrick J. Kaufmann includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Franchise Dunkin facing as an external strategic factors. Some of the topics covered in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version case study are - Strategic Management Strategies, Marketing, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version casestudy better are - – there is backlash against globalization, wage bills are increasing, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing commodity prices, increasing energy prices, cloud computing is disrupting traditional business models,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Franchise Dunkin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Franchise Dunkin operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version case study
2. Improving business portfolio management of Franchise Dunkin
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Franchise Dunkin
Strengths Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Franchise Dunkin in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Franchise Dunkin are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Franchise Dunkin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Franchise Dunkin
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Franchise Dunkin does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Franchise Dunkin in the sector have low bargaining power. Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Franchise Dunkin to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Franchise Dunkin digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Franchise Dunkin has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Franchise Dunkin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Franchise Dunkin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Franchise Dunkin has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Sales & Marketing field
– Franchise Dunkin is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Franchise Dunkin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Franchise Dunkin has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Franchise Dunkin is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Franchise Dunkin is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Patrick J. Kaufmann can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Sales & Marketing industry
– Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version firm has clearly differentiated products in the market place. This has enabled Franchise Dunkin to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Franchise Dunkin to invest into research and development (R&D) and innovation.
Weaknesses Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version, it seems that the employees of Franchise Dunkin don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Franchise Dunkin is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Franchise Dunkin needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Franchise Dunkin 's lucrative customers.
Lack of clear differentiation of Franchise Dunkin products
– To increase the profitability and margins on the products, Franchise Dunkin needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version can leverage the sales team experience to cultivate customer relationships as Franchise Dunkin is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Franchise Dunkin supply chain. Even after few cautionary changes mentioned in the HBR case study - Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Franchise Dunkin vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Franchise Dunkin has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version, in the dynamic environment Franchise Dunkin has struggled to respond to the nimble upstart competition. Franchise Dunkin has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Franchise Dunkin has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Franchise Dunkin has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Franchise Dunkin can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Franchise Dunkin can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Franchise Dunkin is facing challenges because of the dominance of functional experts in the organization. Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Franchise Dunkin can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Franchise Dunkin in the consumer business. Now Franchise Dunkin can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Franchise Dunkin can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Franchise Dunkin to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Franchise Dunkin to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Franchise Dunkin in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Franchise Dunkin has opened avenues for new revenue streams for the organization in the industry. This can help Franchise Dunkin to build a more holistic ecosystem as suggested in the Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version case study. Franchise Dunkin can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Franchise Dunkin can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Franchise Dunkin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Franchise Dunkin can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Franchise Dunkin to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Franchise Dunkin has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Franchise Dunkin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Franchise Dunkin in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Franchise Dunkin.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Franchise Dunkin in the Sales & Marketing sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Franchise Dunkin will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Consumer confidence and its impact on Franchise Dunkin demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Franchise Dunkin business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Franchise Dunkin
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Franchise Dunkin.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Franchise Dunkin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Franchise Dunkin needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Franchise Dunkin can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Franchise Dunkin can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Shortening product life cycle
– it is one of the major threat that Franchise Dunkin is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Franchise Dunkin needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Dunkin' Donuts (E): 1988 Distribution Strategies, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Franchise Dunkin needs to make to build a sustainable competitive advantage.
