Krispy Kreme Essay

996 Words4 Pages
1.0 STATEMENT OF ANALYSIS Level of Analysis: The strategy would be based on strategic business level (SBU) by guiding how Krispy Kreme utilise its distinctive competencies to compete with other competitors and position within the doughnuts industry is the US. 2.0 SITUATION ANALYSIS Macroenvironmental Factors Impacting on the Market We have analysed the macroenvironmental factors that affect the doughnut industry in the US using PESTn. Political There are no significant political factors that affect the industry Economical In 2003, it is expected that a recovery from the global economic slowdown of 2001 would begin in the US and gradually accelerate and spread throughout the world economy. (The World Economy, 2003). In other words, consumers’ buying power and spending pattern may rise due to higher amounts of disposable income. This will affect purchasing behaviours. Socio Demographic Increasing health awareness: Doughnut appeals to all major demographic groups, including age and income. Easy to eat on the run and affordability of doughnuts were the major reasons for the popularity of doughnuts in the US market. In the recent years there has been an increase in the concerns about healthy living as the low-carbohydrate and the weight watching craze swept the people living in the US. According to trend in United States Consumer Attitudes & The Supermarkets (2002 as cited in McCarthy, 2003) states that 50 percent shoppers interviewed reported being ‘very concerned’ about the nutritional content of what they eat, up from 46 % in 2000. Fat content was the top concern listed by consumers followed by sugar, salt/sodium, cholesterol levels, nutritional value and calories. Increasing ‘on the go-lifestyle’ consumers: 'Time-starved consumers are eating on the go more and more.’ about 50% of people eat while working.'(McCarthy, 2003) ‘On the go
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