1. What does a Porter’s Five Forces analysis reveal about the industry in which Dunkin’ Donuts and Starbuck’s compete, and what are its strategic implications for Dunkin’ Donuts?

2. In what ways is Dunkin’ Donuts presently using strategic alliances, and how could cooperative strategies further assist with its master plan for growth?

3. Do you see any evidence of strategic leadership in Dunkin's U.S. expansion plans? If so, how?

4. Further research—Gather information on industry trends, as well as current developments with Dunkin’ Donuts and its competitors. Use this information to build an up-to-date SWOT analysis for Dunkin’ Donuts. If you were the CEO of the firm, what would you consider to be the strategic management implications of this analysis, and why?

the notion that the company has the culinary imperative to sell more than its name suggests. If plans prove successful, more customers than ever may flock to indulge in the company’s breakfast-to-go menu. If they don’t, the only thing potentially worse for Dunkin’ Donuts than diluted coff ee could be a diluted brand image. After 60 years, the company has a reputation for doing two things simply and successfully— coffee and donuts. Even when consumers see the line of products expand into what was once solely the realm of the company’s competitors, they may be unconvinced that Dunkin’ Donuts is the shop to go to for breakfast.

For most of its existence, Dunkin’ Donuts’ main product focus has been implicit in its name: donuts, and coffee in which to dip them. First-time customers acquainted with this simple reputation were often overwhelmed by the wide varieties of donuts stacked end-to-end in neat, mouthwatering rows. Playing catch-up to the rest of the morning market, Dunkin’ Donuts has only recently joined the breakfast sandwich game.

According to spokesperson Andrew Mastroangelo, Dunkin’ Donuts sells approximately one billion cups of coffee a year, for 63% of the company’s annual store revenue. Considering that coffee is the most profitable product on the menu, it’s a good bet that those margins give the company room to experiment with its food offerings.

Changing Course to Follow Demand Faced with the challenge of maintaining a relevant brand image in the face of fi erce and innovative competition, Dunkin’ Donuts pursued a time-honored business tradition—following the leader. Th e company now offers a competitive variety of espresso-based drinks complemented with a broad number of sugar-free fl avorings, including caramel, vanilla, and Mocha Swirl. Ever-increasing competition in the morning meal market made an update to Dunkin’ Donuts’ food selection inevitable. Th e company currently focuses on bagel and croissant-based breakfast sandwiches, as well as its Oven-Toasted line, including flatbread sandwiches and personal pizzas. ……………………