Case Study of Krispy Kreme Donuts IncSummaryIn this SWOT analysis, I will delve into the strengths, weaknesses, opportunities and threats that impact Krispy Kreme Donuts Inc. Krispy Kreme is a 'a very successful company, whose main product, not surprisingly, are donuts. The company went public in 2000 and experienced a highly successful increase in its share price soon after. Vernon Rudolph founded the Krispy Kreme company in 1937 in Winston-Salem, North Carolina. The company has since become a major specialist retailer. They produce over 4 million donuts every day, with over 1.8 billion donuts produced each year. Krispy Kreme has company-owned and franchised stores. They sell donuts in retail stores, supermarkets, convenience stores and other outlets. Krispy Kreme's best-known product is the fresh, glazed, yeast-raised donut called Hot Original Glazed. Krispy Kreme also produces over a dozen other varieties of yeast and sweet donuts. SWOT Analysis Strengths Krispy Kreme's greatest strength is in its product. It is best known for its fresh glazed and leavened donuts, made with a secret recipe. Donuts are very popular throughout North America and have mass appeal based largely on word of mouth and superior quality products. Interestingly, Krispy Kreme donuts are so popular that Krispy Kreme is able to generate a media frenzy without using major or national advertising. . Certainly, this is a great advantage for the Krispy Kreme company, as it significantly reduces the costs of advertising for the company. As a result, the company saves significant advertising dollars each year, resulting in increased profit margins. Certainly, the company's superior product and...... middle of the paper...... in the United States and abroad. The company's main strength is the highly effective use of word-of-mouth advertising. A disadvantage of word-of-mouth advertising is that any move into foreign markets will have to rely on potentially expensive new marketing strategies, rather than the inexpensive word-of-mouth marketing strategies that Krispy Kreme has employed in local markets. Additionally, the Krispy Kreme company faces several threats, including competition in both the United States and Canada, potential saturation of the donut market, and potential rising real estate costs that could prohibit new franchises. Interestingly, the highly successful company has several expansion opportunities both in the United States and abroad. Krispy Kreme references. Investor relations. April 14, 2002. http://64.29.220.236/investorrelations.html