Free Essay. Dunkin' Donuts Company: History and Introduction

Published: 2023-03-27
Free Essay. Dunkin' Donuts Company: History and Introduction
Type of paper:  Essay
Categories:  Leadership analysis Company Branding SWOT analysis
Pages: 7
Wordcount: 1861 words
16 min read

Dunkin' Donuts is a company that leads to coffee and baked goods in the world. William Rosenberg was the company's founder in 1950 (Harris et al. 2010). Rosenberg came up with the first set of Quincy MA and Dunkin' Donuts. Dunkin' Donuts has a unique way of creating their products, where they add exciting flavors so that they can satisfy the targeted customers. The company focuses on selling donuts and coffee, but with time it will be selling different products. The company has a menu of the products they sell, which keeps changing over time, depending on the season. The price of their product is fair for everyone to consume despite the age, income, and race. This is because the company has quality products and wants to attract more customers. Despite the company being created in the US, it has also established many shops in India so that it can attract the people who live in town. The latest expanded business is in china. Above all, they meet the needs of their customers, hence, remaining loyal to the time and taste of customers. Dunkin' Donuts targets the whole population despite the class as they are careful with the traditional bases of customers. The company has also sustained its products by locating them even in the local markets so that it can gain its local consumer's loyalty and patronage that suits them. Dunkin' promotes its products through advertisement using a coffee cup with a brightly colored logo, which leaves a good impression on people's minds. Televisions, print media, and websites are also used as product promotion. Therefore, the purpose of the paper is to analyze Dunkin' Donuts Company, its SWOT analyses, and to look at its financial situation together with its budget.

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Mission Statement

The mission of the company is to lead in providing a wide range of beverages and baked food, through serving fresh and the most delicious donuts and coffee courteously and quickly in modern stores that are well-merchandised. The mission has defined the organization's role played in society. It has an impact on the company because it wants to play an essential role in being the best in offering beverage and baked products in America by serving their customers well with fresh products. Also, the mission is impacted by providing the prevalence taste of the customers and creating up a company that has quick modern stores, which are courteous and well merchandised.

Situational Analysis

Current Situation

The company is planning a strategic plan for three years of expanding its business. It is planning to inform its employees on current matters of the company and giving the direction of its aim for the future. The Dunkin' Donuts marketing environment shows an array of overwhelming opportunities for the growth of the company. Although the company is experiencing rivalries from other companies such as MacDonald and Starbucks, since it was formed, it continues to expand in the United States. The market research shows that the company has experienced more than the anticipated demands of coffee and the company's menu items (Hoffman, 2014). This is because the company's product price is fair and reasonable to all the customers despite the race, income demographics, and age. The ambitious plan of the company is to expand the business nationally and internationally and to differentiate their products from the rivals and a target of positioning itself in a competitive market.

SWOT Analysis


Dunkin' Donuts Company is concentrated and has a unique niche focus that makes it able to explore its potential. It is the most prominent and most significant bakery in the world. The Dunkin' Company's concentration was coffee more than donuts. The brands have many customers because people love them. Later, in the year 2014, the Dunkin' Donuts Company's name changed to Dunkin' Brands Inc.

The franchise model is the reason why Dunkin' Donut was the best company in the industry of food. According to the franchise model, Dunkin' requires four things that is an excellent experience of being able to run the food services, the right resources, available market, and passion for a unique business (Hansen & Klokholm, 2015). The positive thing about Dunkin' Donuts is that the company is a very diligent marketer. The logo and colors are used when marketing the products (Salar & Salar, 2014). The company's products are favorite and have fair prices for everyone to afford.

Dunkin' has an excellent chain of supply because it sells sweet products from the bakery. Therefore, the company needs a plan of its supply chain and logistics in a manner that it will be able to reach all the retailers on time. Food wastage is not allowed during the transportation process, and the products need to be served while they are still fresh. Dunkin' changed on a centralized model of manufacturing food so that quality products can be made. Also, transportation was upgraded, ensuring that all products were kept on the right temperatures.

Dunkin franchise is the oldest and a helm in the United States. Before, people had no trust in franchised companies. Rosenberg had the assurance that franchising was the organization's future and that of the country. Therefore, a union was formed that focused on getting a business franchise to run. Currently, Dunkin' Donuts is still serving coffee, uses the same formula that Rosenberg used in 1960.


Even though the Dunkin' Donuts industry has dominated many countries in the world, it has delays in expanding the business in other countries because of the geographical competition in places where the Dunkin' market has not covered. For instance, in India, there is Mad over Donut, which is very popular, and similar local competitors that are opening across. There is also direct competition from large industries, for example, Starbucks that offers the same products as Dunkin'.

Indirect competition is a significant worry of the company, for example, KFC, McDonald's, and Pizza Hut that deal with segments of fast foods in a large chunk (Hansen & Klokholm, 2015). These competitors have various food outlets, and the company becomes indirect competitors. Even if the company is recognized for its operational management and supply chain is fantastic, it is deficient in franchise relation developments, hence expanding franchise becomes slower.


The company has an opportunity of expanding its market because people's incomes are still rising, and branded product consumption is also increasing. The company is known worldwide for its excellent services and products; hence many people consume its products. In the health sector, unlike the other bakery products that have high calories, Dunkin' Donuts products have a lower range of calories. From Pepsi to Coke and other products, everyone recognizes the potential of healthy snacks. In the food segment, Dunkin' Donuts Company has an opportunity of expanding its menu by adding yummy and fresh snacks so that it can increase its footfalls in the stores. Also, in the flagship store, there are various types of coffee and donuts for keeping their customers happy. Furthermore, customers always expect expansion that brings new things.


If the franchise brand is not expanding quickly even after a long existence, like the other food chains, then it means that there are issues that are threatening franchise and the side of the distribution. More salespeople and distributors must get involved in the fast liquidating of products. The dunkin' shelf life of bakery products is less than Pizza hut or McDonalds that are made based on orders. The brand faces direct and indirect competition, just like the other brands. Although the major worry is that the brand is expanding slowly, unlike the other competitors.

Environmental Scan and Porter's 5 Forces

The company had different external and internal environmental factors that include economic, legal, competitive, technological, and cultural. On the internal strengths is that it is the biggest company in the world that offers quality alleged brewed coffee. It has a plan to expand its business operation outside the country to gain more profit. The loyalty of its customers is the greatest strength of the company. On the side of weaknesses, Dunkin' spends little money on advertising its products. There is also an increase in the prices of raw materials, and lastly, the company needs to introduce products with low calories so that they can satisfy their customer's needs. The external environment of Dunkin' deals with threats and opportunities as viewed in the business. On the side of opportunities, Dunkin' sees the market increase as a great opportunity of expanding the industry globally. With the current downturn of the economy, Dunkin' also gets a chance to increase its market shares in the United States as well as international. The threat of the business is that there is high competition from large companies. Some like Star Buck has a direct competition where they offer the same products with Dunkin'. At the same time, and Pizza Huts provide indirect competition by giving customers another choice of fast food. Competition can be a significant threat in the company, especially international levels, where the products are not well known.

Porter's five forces include threats from the new entrant, the power of bargaining for both suppliers and buyers, risks from the products substitute, and competitive rivalry. To begin with the new entrant's threat, the industry has the potential of growing big and giving allowance to the latest ventures of setting up retail franchises in the market (Hansen & Klokholm, 2015). The company has a continuous scale of production that gives it the ability to maintain its domain. The new small coffee shops find it easy for them to set up their businesses in a low entry barrier. Besides, the competition from the big companies discourages small business in such a competitive environment. Hence Dunkin' faces lowered threat levels from the new entrants.

The snacks and coffee buyers have low powers of bargaining. Thus no price structure influence is developed by the company. Dunkin' customers focus on getting high quality and hygienic products from the restaurant. The management is proper and offers excellent services to its customers. The consumers also have a will of paying high prices so that they can get quality products that low end in the coffee shops. The supplier's bargaining powers are too small. The company succeeds because of its quality ingredients in the snacks and coffee. A company needs to form contracts with the right suppliers in the supply chain.

The company has a threat from the industries with substitute products. Many retail businesses also overs, coffee, donuts, and any other snacks, which are found in the Dunkin' Donuts menu. In such a situation of competition, Dunkin' focusses on producing quality products and being loyal to its customers. Also, the company has developed a simple version of the menu so that it can enhance the convincing level of its customers. And lastly, the company faces an intense competition degree from other industries that provide the same products as Dunkin. McDonald's Company is one of the threats, and a direct competitor to Dunkin' because they share the same market and products. In such a situation, the management has to come up with new strategies and actions of dealing up with the competition pressure so that they can maintain a strong position in the market.

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