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CASE STUDY

Instructor Dr. Mary Flannery
ECON 136 – Business Strategy
January 30, 2006
INDUSTRY ANALYSIS

In 2003, the U.S. doughnut industry was a $5 - $6 billion market. American households consumed an estimated 10 -12 billion doughnuts annually; this translates into over three dozen doughnuts per capita. In 2002, doughnut industry sales rose by about 13%. Sales from doughnut outlets rose by about 9%, to approximately $3.6 billion, whereas packaged doughnut sales at supermarkets, convenience stores and other retail outlets staggered in the past five years. A study by Technomic confirmed the growth of doughnut shops and identified this segment as the fastest-growing dining category in the country. Further analysis provided by the following figure shows attractiveness and profitability characteristics of the doughnut industry.

Five Forces Model of Competition



Players in the doughnut industry are: Dunkin' Donuts, Krispy Kreme, Tim Hortons, Winchell's......

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Approximate Word Count: 1932
Approximate Pages: 8 (250 words per double-spaced page)

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