Swot analysis-DunkinDonuts

Do Thanh Trung-ID 4425170-Sec 7 The internal strength of DunkinDonuts is it has been launched in Thailand for 22 years while Starbucks, also a bakery chain, has just opened its first outlet in Bangkoks Central Chidlom since July 1998, 5 years ago. DunkinDonuts obviously has gained a strong image in the market, thus the name DunkinDonuts is very popular, or in other words, customers are more familiar with DunkinDonuts than with Starbucks. Apart from much strength, DunkinDonuts also has its potential internal weaknesses, which include lack of management depth and talent, strategic direction. The company with more than 1300 employees results in comparatively high operating expense, which makes it difficult for DunkinDonuts to compete on the basis of low prices. In addition to it, Dunkin Donuts which previously operated separately with Au Bon Pain (both are the fast food chains of Royal Food Service-RFG) accounts for dis-centralised and ineffective business development, marketing, HR, IT and finance departments. However, obsolete facilities, unmodernized stores did not attract young people, create a boring atmosphere to the customers as they come to the shop. Realizing those serious problems, RFG are trying to improve the managerial function, which is one of the weak point of DunkinDonuts. Thus Nadim Salhani, a 43-year-old Lebanese national was employed to be a group-managing director and to oversee restructuring the company. With his almost 27 years business experience in Thailand, Salhani is the hope to bring the opportunity of development for DunkinDonuts. According to his words, I would like to modernize the DunkinDonuts chain. We want to reposition and make the stores an exciting and trendy place for young people; the opportunities of DunkinDonuts are the possibility of serving additional customers (market penetration), and the chance to enter new market segments (young people). Also many exciting promotions are offering to appeal the customers such as add more coffee varieties to DunkinDonuts restaurants. Furthermore, Salhani said he also had his sights set on RFG, the groups frozen dough factory at Bang Phu Industrial Estate, which he said had strong business potential domestically and in terms of exports. It was Salhanis years at Starbucks that will result in some coffee innovations at DunkinDonuts. Perhaps, it was Starbucks that would be the biggest external threat for DunkinDonuts because although its first outlet was just opened in Bangkok 5 years ago, Starbucks now has 32 local outlets and are attempting to compete with DunkinDonuts. Salhanis 27 years business experience in Thailand led to the very successful management of Starbucks.