Dunn Bros Swot Analysis
DUNN BROTHER’S SWOT ANALYSIS PART I: BUSINESS BACKGROUND: 1. What is the company’s mission statement? (Acquired via email from Dunn Bros employee) “Connecting people through an authentic coffee experience. ” 2. Who are their primary stakeholders? Customers/Buyers: With 88 locations in 9 states, transients and residents of North Dakota, South Dakota, Minnesota, Wisconsin, Kansas, Missouri, Nebraska, Tennessee, Texas. A location in Iowa will be opening in the near future.
Suppliers: Evolfoods, Jose Rossetto and sons, Fazenda Ambiental Fortaleza’s Competitors: Caribou Coffee, Starbucks, Barnie’s and other local coffee shops as well as Dunkin Donuts and other bakery chains. Government and Regulatory Agencies: U. S. Department of Agriculture, Food & Drug Administration, Local, State and Federal Government Taxing Agencies The Financial Community: Local Artists, Schools, Franchisees, Employees, Schools, Hired Local Bands Owners: Chris Eiler – CEO and Franchisees Trade Associations: USAID, Fair Trade Coffee, Rainforest Alliance S = strengths, W = weaknesses, O = opportunities, T = threats
S •Valuable long-term relationships with foreign suppliers •Product Differentiation by using state of the art on-site micro-roasting techniques to roast coffee beans right in front of customers •Strong sustainability position: They reduce waste by only roasting the coffee they need for that day. •Teaching the patrons about the roasting process gives educational insight to the industry and may spark franchise interest in some entrepreneurs. •Purchasing power allows for greater profits •Appeal to the demographics of students and business people by offering free WIFI. Strong Community involvement: art contest at local elementary schools and hanging artwork creations of local artists. •Newer locations have outdoor patios and some have drive-thru windows offering convenience •Coffee house support team offers assistance for franchisees •Customer loyalty “Roastmaster Rewards” program •88 Store locations with strong visibility •Strong social responsibility •Franchisees are owner/operators •Registered Trademark •Chosen by the Minneapolis Star Tribune as one of the top places to work. W oWeak distribution compared to the competition (Starbucks over 15000 stores). Greater need for brand awareness through advertising oDiversification oPrice (expensive) oRelatively low number of company owned locations. oExclusion of certain social units such as senior citizens and soccer Mom’s O •Initial Public Offering of shares of stock to a publicly traded company. •Using the capital from the sale of stocks should lead to possibly expanding locations around the globe as well as establishing more locations domestically. •Once Cup Coffee Brewing machines offer coffee in many flavors including Starbucks and Caribou Coffee.
Creating a line of Dunn Brothers prepackaged individual coffee discs would be an opportunity for diversification and increased profits. •Forming an strategic alliance with a mass retailers or grocery chains for rights to set up SWAS (store within a store) locations •Creating an FREE I-pod application with store locations, drink selections, hours of operation, food menu, live music events, etc. This serves as free advertising plus an improved customer experience. •The closing of 600 Starbucks locations since 2008 should be investigation for potential distribution growth. New products (perpetual opportunity within the industry) •Acquisition of membership with Green Coffee Association T ==>Starbucks plans to open 500 new locations overseas and in the U. S. in 2011. ==>Low barriers to entry means increased competition ==>Increased competition may lead to some markets becoming overwhelmed with similar products leading to possible price cuts to remain competitive ==>Affected by the recession, patrons may be looking for low cost alternatives ==>Consumer Price Index shows a steady increase (up $. 7 per gallon since January 2010) in the cost of milk ==>Caribou Coffee plans to build out distribution across U. S. ==>Prices of coffee beans are at their highest in 13 years ==>Advances in technology are allowing coffee lovers to prepare their favorite blends at home; one cup at a time. PART III: SOURCES WORKS CITED Dunn Brothers Coffee. Dunn Bros Coffee . 24 September 2010. 24 September 2010 . Evol Burritos. Evol Burritos. 24 September 2010. Phil’s Fresh Foods. 24 September 2010 . Flores, Elizabeth. Star Tribune Photos. 14 September 2007. 24 September 2010 . Franchise Gator. Dunn Bros Coffee. 4 Septebmer 2010. 24 September 2010 . Green Coffee Association. Current Members. 26 September 2010. 26 September 2010 . McIntyre, Douglas A. As Starbucks Stores Brim to Overflowing, Investors Sell the Stock. 22 July 2010. 25 September 2010 . St. Anthony, Neal. Star Tribune Business. 30 December 2009. 24 September 2010 . U. S. Department of Labor. Consumer Price Index – Average Price Data. 26 September 2010. 26 September 2010 . Van Tan, Robin. QSR Interview. 1 June 2010. 23 September 2010 . Wolff, Eric. Retail: Rising prices jolt coffee market, local shops begin passing along increases. 25 September 2010. 26 September 2010 .
