Threats of Dunkin' Donuts Essay

346 WordsMar 26, 20152 Pages
THREAT The biggest threat for Dunkin’ Donuts is that people are moving to healthier ways of eating. Environmental organizations are encouraging people to consume less meat. Because meat is not only bad for your health, but also contributes greatly to deforestation. We need more land to feed animals in order to serve their meat to everyone. However, animals need a large amount of land to raise. There is a statistic said that cows only produce less than 5% of protein while taking up 3/5 of the world’s land space. On the other hand, people now want to avoid high calories food. Dunkin’ Donuts’ products consist of donuts, sandwiches, cool drinks and so on. These are all mainly high calories products. The second biggest threat for Dunkin’ Donuts is some competitors like Starbucks, McDonald and other small restaurants. They serve similar kind of food and snacks. Dunkin’ Donuts now has nearly 11,000 restaurants in 33 countries.There were about 7,000 in U.S. Starbucks has 20,000 retail stores in 65 countries. 11,000 of them are in U.S. These two companies occupied nearly 60% of the coffee market. Starbucks controlled approximately 36% and Dunkin’ Donuts around 24% separately. In the same time, McDonald is expanding McCafe right now. Every businesses are trying to promote new products, however only 10% consumers are willing to try them. The third biggest threat for Dunkin’ Donuts is that new products can’t attract many people. Consumers tend to order more familiar products rather than to be adventurous. Dunkin’ Donuts can do some research on other markets in stead of just ordering the similar products which conflict to other competitors. Other markets may increase the sales and make good profits. The forth threat for Dunkin’ Donuts is the increase cost of raw material. Coffee bean price have hit the highest level during last year. These will lower the

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