Krispy Kreme Case Study

Krispy Kreme Case Study

To become a Krispy Kreme franchisee, an entrepreneur must have the dream of one day owning their own business, have a willingness to take risks, be able to recognize opportunities when they occur and be a naturally optimistic thinker who can use their time, capital, and talent to achieve success. To be considered for a Krispy Kreme franchise, entrepreneurs must have demonstrated a time standing history of success as a businessperson, to be willing to work as part of and to foster a team environment, as well as have a large financial base in which to invest in the Krispy Kreme franchise. Although these characteristics are a solid base to be considered for any franchise, there is always risk of failure. In the words of General Colin Powell, former US Secretary of State, "A dream doesn't become reality through magic; it takes sweat, determination, and hard work". (Boone & Kurtz p.12) Krispy Kreme uses these characteristics to choose the right persons to run their businesses, and in doing so, they promote a high quality team oriented atmosphere that adheres to the highest customer service.

Using technology and innovation, Krispy Kreme could expand into an e-commerce retail establishment. Although Krispy Kreme has an internet merchandise e-business, they have yet to introduce the ability to deliver their fresh doughnuts to the masses through the use of the internet. This company could accomplish this by creating a reusable shipping container that has the ability to self-warm its contents. This combined with a Global Position System (GPS) tracking could activate the warming process near the final destination. Customers could order Krispy Kreme doughnuts on-line and have them delivered hot and fresh anywhere in the world within 24 hours using current e-mail and shipping practices. This process would entitle Krispy Kreme to reach customers in extreme rural areas in the US and in the world who would have to drive 50 miles or more to get to a Krispy Kreme store. Customers in these extreme rural areas are not in a market for a potential franchise.

Krispy Kreme has a competitive advantage over other bakeries because the self-rising yeast doughnut has an excellent reputation representing freshness at its finest and because of the innovative doughnut making process. This process appeals to its customers through anticipation and the sensory response. The first indication is the large red "hot Krispy Kreme now" neon sign that's displayed while the doughnuts are being made.