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Current Business-Level Strategy and Suggested Changes

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Krispy Kreme is most famous for their Original Glazed doughnut, which is the firm’s most recognizable product. Their one-of-a-kind taste doughnut is the base of the company.  Krispy Kreme strong commitment to frequently test potential new doughnut flavors allows the company to offer new products to their customers. The different variety of doughnuts that Krispy Kreme offers is never-ending. Krispy Kreme uses differentiation strategy to set them apart from their competitors. Their ultimate goal is to sell its premium doughnuts to customers who value the doughnuts’ uniqueness. In addition, Krispy Kreme offers Doughnut Theatre, which is an in-store manufacturing process that allows customers to view how doughnuts are produce. The main purpose is to give customers an entertainment experience and strengthen their commitment to guarantee freshness of our doughnuts.

Krispy Kreme’s primary competitive strategy against their competitor is their cost leadership approach. Competitions are always rising in the food industry but Krispy Kreme manage to keep their prices low to their loyal customers. Management is aware of the intensity of their rivals, where they made the strategic decision to build smaller factory stores in more locations rather than the traditional large stores to reduce costs. The more stores that are opened, the more customers they attract. A lot of people are not willing to drive farther to the traditional large stores for doughnut. Convenient of store locations will widen customer base for Krispy Kreme.

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Krispy Kreme Doughnuts management from a third party point of view shows that the company’s management is inefficient in relation to investment planning, accounting, marketing and its operations. The main objective of the research was to come up with ways in which the company could recover its success. Some of the suggestions and recommendations include: the company has to gain back its lenders and investors confidence, increase profitability and sales in the selling and core business of the doughnuts, and increase and regain the stock price thus the shareholders value. In addition, correct wrong and inaccurate entries into the financial statements and extend strategic policies to customers in order to ensure that significant growth is achieved within a period of 5 years. They implement marketing measures and strategies in order to invest the premise operations strategically.

In this case, the main areas of consideration are plans to open more doughnut shops, plans to generate more revenue from primary sources and plans to win their investors and customer’s confidence and trust. According to analysts, the company will continue to grow and perform higher scores in the next two years based on the products quality. The research carried out on the same has shown that the company will grow and perform higher rates in the next two years if the company continues to provide the highest quality doughnuts and adopt the above objectives.

Krispy Kreme Doughnuts still has many opportunities to expand its geographical network. The company’s perspective is to make Doughnuts with the best unique and quality taste. This will ensure that the company remains a step ahead of its competitors.

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