Another key strength, which is well known, is that Krispy Kreme has a good quality product. Their products are available in many gas stations, supermarkets, Wal-Mart’s, and Target Stores, among other visible locations.The fourth area of examination is with internal weaknesses. One study of the company showed where there is a limited amount of healthy food choices at Krispy Kreme (Fish et al. A second resource pointed how low-carb diets became in fashion just about the time that the company was rapidly expanding (Intini, 2007). Hoyt (2008) pointed out how the company seems to be closing too many stores. Their franchisees are struggling, and even though 28 new franchisees opened in the first quarter of 2008; there were 7 closures. The company stated that they “will close additional stores in the future and the number of such closures may be significant (Hoyt, 2008). Hoyt (2008) further elaborates that Krispy Kreme stated their earnings are vulnerable to sharp rises in raw material costs (Hoyt, 2008).More problems exist as Krispy Kreme faces slowing customer traffic; a lack of product diversification; and high fixed costs. In addition, US stores are contracting some of the base stores (Kell and Burris, 2009). Yet another problem is with the company stock rising to a high of $49 per share in 2008 before ultimately losing 90% of its value due to overexpansion; heavy debt; management scandals; SEC investigations; and bankrupt franchisees (Kopp, 2009).Next, we will summarize and match in a general form the information gathered above. The company’s internal strengths include: (1) brand name; (2) new top. Krispy Kreme Doughnuts - A Strategic Analysis.
Calegari, Michael (2010). Financial Analysis of Krispy Kreme’s Earnings Forecasts,
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Hoyt, Jennifer (2008). Earnings Digest: Krispy Kreme Posts Profit, But Sales Keep Weakening;
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Intini, John (2007) Warm, gooey and Getting Really Kremed. MacLean’s, 120(23), 2
Kell, John and Mike Burris (2009).. Corporate News: Krispy Kreme’s Loss Narrows. Wall
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Kopp, Carol (2009). The Tragedy of Krispy Kreme.
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