Krispy Kreme Doughnuts

Krispy Kreme Doughnuts

Current Strategy

The current strategy of the company can be understood by taking into account its business level strategy and corporate level strategy.

Business level Strategy

The companies use their core competencies in order to achieve the above average returns by satisfying the needs of the customers. The business levels strategies are very useful in satisfying the needs of the customers and gaining the competitive advantage. The business level strategies define the position of the firm in an industry with regard tot eh competitors and the five forces of competition. Customers are the central focus of the of the organizations business level strategies. In the business level strategies, the organization decides who will be its customers, what are their needs and how the senior management will meet these needs of the customers. There are five types of business levels strategies which include cost leadership, differentiation, focused low cost, focused differentiation and an integrated differentiation/low cost strategy.

Krispy Kreme follows the differentiation strategy. In the differentiation strategy, the company provides value to its customers by with the help of unique characteristics and features of its products instead of lowering down the prices. Krispy Kreme has started a new range of products in order to provide more value to its customers. It has introduced coffee at its stores considering the needs f the customers (Anderson, 2011). Similarly, as the growing concern of healthy food emerged in the US and elsewhere, it introduced a new range of doughnuts which did not contain he fats. Ti ahs also developed a mobile app for the guidance of its customers. This is the current business level strategy of the organizations (Anderson, 2011). The share of the coffee at the Krispy Kreme stores is still nominal but the management plans to double this share in the coming few years. Furthermore, it is also believed that there will be rise in the sell of the new doughnuts which are fatless and have been made in order address the health related concerns of the customers. The management of the Krispy Kreme believes the differentiation strategy will work for them as they have failed to produce favorable results with the help of the low cost strategies.

Corporate level Strategy

At Krispy Kreme, there is a high sharing of activities between the businesses. Similarly, the corporate relatedness is also very high. The corporate level strategy krispy kreme in terms of diversification is both operational and corporate relatedness (Elikai et al., 2011). There are four main business segments of Krispy Kreme. These include domestic franchises, company stores, KK supply chain and international franchises. All the strategies of Krispy kreme are shared into these four segments. When Krispy Kreme planned to introduce the coffee at its stores then it was made available at all its stores including the domestic franchises and the international franchises (Elikai et al., 2011). The core competencies of the businesses are also transformed into the businesses. The core competency of Krispy Kreme is also transformed into all the ...