Management and Organizational Studies 4410A/B Lecture Notes - Lecture 10: List Of Doughnut Shops, Tim Hortons, Franchising
Document Summary
Royalties from franchised stores and franchise fees from new store openings. Sales of doughnut mix, customized doughnut making equipment, and coffees to franchised stores. Timely: yes, but could be more specific. Competitors: moderate threat a lot of competitors who hold large shares in the market, but not that bad. Location matters more than anything: tim horton"s, dunkin" donuts, krispy kreme"s, winchell"s donut house, lamar"s. Consumers: strong threat low switching cost and and have a lot of choice. New entrants: strong threat saturated market, but low switching cost of customers. Anyone can start making doughnuts and sell them, easy and cheap. Substitutes: strong threat many pastry options being sold in other shops around the country. People are opting for healthier on the go snacks. People bring snacks with them more often and are making coffee at home. Suppliers: weak threat can buy same products from other suppliers (flour, sugar ), not unique. Unattractive market: hard to make money selling doughnuts.