Activities of KKD in the International Market Essay

Activities of KKD in the International Market - Essay Example The paper tells that Krispey Kreme stores are located in Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, The Philippines, South Korea and United Kingdom. In fiscal 2007, 60 new international stores were opened, while 5 international stores were closed down. Krispey Kreme concentrates on their development effort, primarily in Asia and Middle East. In 2007, The Krispey Kreme was awarded the development rights in the Middle East, Hong Kong, Tokyo, the Philippines, and Indonesia. The developments and franchise agreements for these territories provide for the development of in these regions 200 stores. The International Franchise division consists of the company’s global store franchise activities. Worldwide franchise stores trade in doughnuts and complementary products, exclusively through the appropriate sales channel as in the case of Krespey Kreme direct outlets, using the same store formats as in the company stores segment. The International Franchise division also uses a kiosk format for the effective operation. The North Carolina-based Krispy Kreme has come to Asia. The KKD opened its first shop in Hong Kong and then in Indonesia. Tokyo, Manila and Macau outlets were opened as they expanded their business in Asia. For the other part of the continent, KKD opened outlets in Kuwait; with an eye on is setting up this fall in Kuwait with additional shops planned for the Saudi Arabia, Egypt and United Arab Emirates. Hong Kong and other Asian countries are relatively easier targets now, than it were it were a few years ago. External Environment of Krispey Kreme: In the US market, Krispy Kreme faces completion in baking industry. Krispey Kreme production includes breads, pies, doughnuts, cakes and coffee. The competition is exceedingly high and so firms must be able to provide cheap, differentiated products to the purchaser who needs them for low switching costs. In America, the people are busy and they always go for the fast food which makes t hem fatty and diabetic. Now the people are aware of this problem, and they are choosy in food as well as taste. In international market, the Dunkin’s Donuts is the main competitor for the Krispey Kreme donuts because it offers or similar lines products to the customers. The Dunkin’s donuts have a reputation in international market as they only introduced the first zero gram fatty products for the customers. The Asian franchises sell doughnuts only at their outlets aiming at monopoly. KKD’s business in the United States actually concentrates on wholesale business. Krispy Kreme has appended its base in the US by supplementing them with other items, in supermarkets and convenience stores. The Challenges: 1)  Ã‚  Ã‚  Ã‚  Ã‚   Competitive: KrispyKreme functions in the area of expertise eatery business; on the other hand they compete with all outlets that a customer can access with the intention of satisfying usage for snacks, coffee, or treat-based objects. These o utlets consist of other area of expertise eateries, fast food outlets, local expediency stores, and other retail atmospheres that store coffee and other beverages. With regard to their core merchandise, Krispy Kreme also has to compete with unbranded doughnut producers that are sold through supermarkets and doughnut vans. 2)  Ã‚  Ã‚  Ã‚  Ã‚   Economic/Financial: The continued financial recession is destined to tighten customer’s expenditure. As Krispy Kreme is a non-necessary food article this may pressure sales. Price rises is not the target of Bank of England as there is upward stress on long-term rates of interest all over UK. An increase in interest rates will enhance the price of capital and denote more luxurious borrowing for Krispy Kreme, which is deeply engaged in competition with its rivals. 3)  Ã‚  Ã‚  Ã‚  Ã‚   Physical Environment: Due to the increase in rivalry, it is vital for Krispy Kreme to pursue the real trends and be a step