Business strategy

1). Company Background

2). Value Proposition

3). Industry Overview

4). Financial Overview

5). Vision, Mission, & Strategy

6). Strategic Analysis

? SWOT Analysis

? PESTLE Analysis

? Porter’s Five Forces Analysis

? Industry Life Cycle & Current Strategy

7). Conclusion

Strategic Management – Dunkin Donuts
– A presentation by
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Index
1). Company Background
2). Value Proposition
3). Industry Overview
4). Financial Overview
5). Vision, Mission, & Strategy
6). Strategic Analysis
❖ SWOT Analysis
❖ PESTLE Analysis
❖ Porter’s Five Forces Analysis
❖ Industry Life Cycle & Current Strategy
7). Conclusion
Company Background
• Dunkin Donuts is a coffee and
doughnut company founded by
Bill Rosenberg (1916-2002) in
1950
• The company earned a total
revenue of $1.37 billion in 2019
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Value Proposition
• Offering consumers with
multiple options of fresh & fast
food of the highest quality
• Introducing innovative products
such as gourmet cookies,
smoothies, iced coffee, and
breakfast sandwiches
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Industry
Overview
• The coffee shop market in the United
States was valued at $36 billion in
2020
• The focus of the industry is shifting
towards differentiating themselves by
providing unique products & services
and creating a unique store
experience for its customers
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Total Revenue of
$1,370.23 million in
2019
Gross Margin of 94.47%
and Net Margin of
17.66% in 2019
Operating Cash Flows
of $297.73 million in
2019
Earnings Per Share of
$2.89 per share in 2019
Financial Overview
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Vision, Mission, and Strategy
• Vision: “To be always the desired place for great coffee
beverages and delicious complementary doughnuts &
bakery products to enjoy with family and friends”
• Mission: “To be the leading provider of the wide range
delicious beverages & baked product around the
kingdom in a convenient, relaxed, friendly environment
that insures the highest level of quality product and best
value for money”
• Strategic Objectives:
❖ Menu Innovation,
❖ Unparalleled Convenience,
❖ Broad Accessibility,
❖ Restaurant Excellence, and
❖ Market Expansion
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Strategic
Analysis
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SWOT Analysis – Strengths
• Global operations
• Differentiated positioning as a goto breakfast store
• Extensive franchise network
• Strategic branding as an innovative
brand which regularly develops
unique new products
• Efficient supply chain management
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SWOT Analysis Weaknesses
• Significant reliance on the
United States for profitability
• Slow geographical expansion
• Caters to a small niche of
customers
• Limited financial resources in
comparison to its
competitors
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SWOT Analysis Opportunities
• Healthy foods market segment
• Market expansion opportunities in the developing world
• Diversification of menu offerings by introducing different categories
of food & beverages
• IncreasedINTERNAL
opportunities in the online delivery market segment
SWOT Analysis – Threats
• Increased competition from Starbucks,
McDonalds, Mad Over Donuts, Burger
King, etc.
• Increased focused on health & wellness
in the aftermath of the COVID-19
pandemic
• Increased inflation, supply chain
disruption, & recessionary pressures in
the wake of the COVID-19 pandemic
• Change in regulations due to increased
demand for government action against
unhealthy fast foods
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PESTLE Analysis – Political
Environment
• Relevant Political Factors
❖ Emergence of health & wellness
as a political issue
❖ Increased demands for strict
regulations on foreign companies
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PESTLE Analysis –
Economic Environment
• Relevant Economic Factors
❖ Inflation & increased fears of
recession
❖ Supply chain disruption leading
to shortage of materials
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PESTLE Analysis –
Social Environment
• Relevant Social Factors
❖ Increased focus on health & well being
❖ Increased demand for vegetarian & vegan
options
❖ Increased demand for organic ingredients
& online delivery platforms
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PESTLE Analysis –
Technological Environment
• Relevant Technological Factors
❖ Use of smartphones for ordering food &
making reservations
❖ Use of target advertising & target
marketing
❖ Use of Artificial Intelligence (AI) & Big Data
to predict consumer purchase patterns
❖ Emergence of social media as the most
significant platform for customer
interaction, marketing, and relationship
building
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PESTLE Analysis – Legal
Environment
• Relevant Legal Factors
❖ Change in government regulations in
different countries related to health,
safety, minimum wages, etc.
❖ Different legal requirements for
franchises in different countries
❖ Weak protections for intellectual
property rights in emerging countries
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PESTLE Analysis –
Environmental
Environment
• Relevant Environment Factors
❖ Climate change leading to change in
crop production patterns
❖ Increased demand for reduction of
single use plastic
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Porter’s Five Forces Analysis –
Threat of New Entrants
• Threat of New Entrants: High
❖ Low capital need for entry of
new competitors
❖ Low official entry & exit bar for
new companies
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Porter’s Five
of Replacement : High
Forces Analysis • Threat
❖ Low switching costs for consumers
❖ Availability for multiple replacement for consumers
– Threat of
Replacements
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Porter’s Five Forces
Analysis – Bargaining
Power of Customers
• Bargaining Power of Customers: Medium
❖ Low switching costs for customers
❖ Availability for multiple replacement
for customers .
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Porter’s Five Forces Analysis –
Bargaining Power of Suppliers
• Bargaining Power of Suppliers: Low
❖ Low switching costs in
changing suppliers
❖ Availability for large number of
suppliers in multiple countries
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Porter’s Five Forces Analysis
– Competitive conflict
• Competitive conflict : High
❖ High number of competitors in the
industry
❖High degree of competition on the basis of
price
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Industry Life Cycle & Current
Strategy
• Current stage of Industry Life Cycle: Maturity in
developed economies & Growth in developing
economies
❖ Limited scope for market expansion in
developed economies
❖ Limited scope for menu innovation
❖ Industry consolidation among established
players
• Current strategy: Cost leadership &
Differentiation
❖ Reduce costs in order to stay competitive in
the market
❖ Attempt to differentiate the brand in order
to retain customers & build customer loyalty
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Conclusion
• Dunkin Donuts should focus on expansion in emerging
economies
• Dunkin Donuts should focus extensively on building
customer loyalty through menu innovation, providing a
unique in-store experience, customer loyalty program,
etc.
• Dunkin Donuts should also focus on staying price
competitive in the market, while also differentiating its
brand & product offerings in the market
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Thank You
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Strategic Management Course
SaudiGulf Airlines Business Case
Table Of Content
01
Introduction
3
02
Strategy Analysis
4
2.1
Vision, Mission and Objectives
4
2.2
External Environment Analysis
5
2.3
Porter’s Five Force Model
6
2.4
VRIO Framework & SWOT Analysis
7
03
Industry Life cycle Stages Growth Stage
8
04
Interview with a leader
9
05
Conclusion
10
Introduction
Airlines Industry of Saudi Arabia is well known for its
services and quality.
Competition in the airlines industry of Saudi Arabia is
very intense and tough and this makes it a
requirement for each company to gain a unique way
of adding competitive advantage.
SaudiGulf Airlines Company was established in 2013,
and the operations began in 2016.
It is known to be the third International Carrier within
the country, after Saudia and Flynas.
Strategy Analysis
Vision, Mission and Objectives
Vision
The vision of the company has
been “Be a pioneer of change,
opening new horizons in the
sky.
Mission
The mission of the company is
to “build an airline that pushes
the boundaries of service and
technology and make it the
new benchmark of efficiency.”
Objectives
• To create a competitive
advantage which has no
duplicity.
• To utilize all the common
resources in such a manner that
it leads to a new creation of
activities and services.
• To provide its employees with a
platform to enhance their
innovative capabilities.
Strategy Analysis
External Environment Analysis
P
E
S
T
E
L
Political
Economic
Social
Technological
Environmental
Legal
The political condition
of Saudi could provide
the business with
acceleration as the KSA
servants are working for
its improvement which
could be the main factor
for political support.
The economic factor is
expected to be
supportive as the KSA is
on an increasing trend
which reveals that the
company would grow
with new ideas and
vision.
The social development
of KSA is supportive to
the company as the
lavish lifestyle and use
of latest technology
attracts the citizens and
tourists
The technological
effects in the company
services create the
company’s outlook and
the industry takes up
the latest techniques for
creation of new services
The environmental
effect for the industry is
clear and this supports
the future enhancement
through utilizing the
resources in an effective
manner
The legal authorities of
KSA and of the industry
support the company
which have wide effects
on the outlook of the
country.
Strategy Analysis
Porter’s Five Force Model
Buyer’s Power (Low)
Substitute Threat (Medium)
The buyer’s bargaining power is low since the company
The company provides unique services to reach the third
provides high-quality services, which appeals to those
position of the airline industry.
who value quality over price.
The substitute of goods and services lies to the medium
Buyers have no bargaining leverage because the
company’s brand image is so strong.
Competitive Rivals (High)
scale due to its quality maintenance and effective
services.
Competitors are Saudia Airlines and Flynas.
The company is required to build up new services which
Competitors had a higher position due to their goodwill and
makes it unique.
brand image.
For sustaining in the field, it is advised that the company takes
Threat of New Entrants (Medium)
up a new competitive advantage strategy serve price and new
destinations.
Suppliers Power (Low)
The accuracy and the intense competition makes it
The suppliers of the company have low bargaining
difficult for the entrants to survive which makes it a
power due to their effective service and high demand.
difficult choice for the new entrants to be a part of the
industry.
Strategy Analysis
VRIO Framework & SWOT Analysis
Competitive advantage could be achieved
through rightly utilising the Value created.
SWOT Analysis
Strengths
The Rare value of the company is the encouraging
factor which makes it sustain and grow in the
industry as its services are the rare feature which
could be used for creating a competitive
advantage.
The Imitability feature of the company should be
low enough that is the competitors would not be
able to copy the uniqueness of the company.
Organized to create value should be included in
the company’s vision which makes it applicable in
every section of the company.
Effective Services
Highly competitive
Unique in nature
S
Threats
Changing trend
New Technologies
T
Weaknesses
W
O
Management
Identification of
effective
business
strategies
Opportunities
Attain the highest position in
the country’s industry
Rule over the industry
Factor
Actions
Generic Strategies
Differentiation
The company has the aim of delivering one unique and differentiated service or product.
Industry Life
cycle Stages
Growth Stage
Market Growth Rate
Wide
The growth rate scope of the company is quite wide as the company has an intention of
being the top company of the airline industry.
Number of Segments
The company focuses on a specific segment and that is improvement and enhancement of
service to an updated technology.
Intensity of Competition
The competition in the industry is increasing and the intensity is expected to be high in
future for the company because of its growing stage.
Overall Objective
The overall objective is to reach the top position of the industry.
Interview with a leader
It was realized that the company is aiming for
topmost position of the industry by taking up
some new values and channels of
improvement.
Stated that the company is doing everything
possible under strict guidance to achieve
sustainable position in the industry.
The services are the main concern in the
aviation industry and the company is aiming to
add some unique features that would be
difficult to be imitated by others.
Stated that the process of the system would
be kept confidential on every level.
Conclusion
The company should have a unique
competitive advantage and would be difficult
for others to imitate.
The analysis of the market and the industry
provided with an internal and external analysis
would support or impacts the company
enormously.
Thank
YOU