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Sample Essay on PESTEL Analysis for Dunkin Donuts

PESTEL Analysis for Dunkin Donuts

Dunkin Donuts is one of the widely acknowledged companies within the staple of the snack food in the New England geographic market and in the international markets. The restaurant market is quite profitable especially, if offering snack food and coffee among other beverages. However, it is also a competitive market that is not that easy to surmount without great strategies. For Dunkin Donuts to reach its highest rank, embracing the PESTEL analysis was one of the greatest strategies to embrace.

PESTEL is all about the Political, Environmental, Socio-cultural and technological factors. These factors are used to aid a company carry out logical analysis so has to take the market with a bang and defeat any kind of competition. This is a great strategy that has helped Dunkin Donuts identify opportunities and threats that impact its operations. The Pestle analysis for Dunkin Donuts like any other analysis covers different factors that expound how the company has been over the years, the threats it has faced and areas where it needs to make instant changes. Here we go;

  • Political factors– Politics have play great roles in the business sector. since it began its operations, Dunkin Donuts has faced a lot of challenges from governmental restrictions and legal issues like any other company in the world. Tax policy is one issue that the company has never turned down. More so, the company has also been able to abide to trade restrictions set by the U.S government or trade bodies, but also set by the international trade. For instance, the Dunkin Donuts’ espresso beans are 100% Fair Trade Certified and picked from the finest and high quality Arabic beans. The company has also been able to abide to environmental regulations and labor law.
  • Economic factors– Dunkin Donuts has been facing a lot of competition from other companies like Starbucks and McCafe, but it has been able to overcome tough economic times that have been facing the market over the years. With new emerging markets in South America and Asian countries, this presents a great pathway for future investment. Moreover, rising price of coffee beans may pose a threat to the industry. An increase in interest rates and inflation rates are economic factors that threaten most companies offering beverages and related products.
  • Social factors– Social trends vary with age distribution, career attitudes, health concerns and population growth rates. There has been high concern these days about health issue. For some people, coffee is a bad beverage for health and many are going for other new drinks. Today, you can buy fresh fruits at Dunkin Donuts and gather essential nutritional information from the company’s website. The company also offers a training plan in its website for better health.
  • Technological factors– advent of technology has presented great opportunities for companies to advance with the changing business world. Dunkin Donuts has taken new measures on how to market and distribute its products in many countries. new machines and high-tech equipment have been introduced to help the company stay up-to-date with the market. The company also gets feedback on its websites concerning the products it offers. Hence, it comes up with great strategies to make them better and reach a wide target audience.

Dunkin Donuts’ has taken the coffee and donuts industry with a bang. Today, it is among the leading companies that any entrepreneur can learn from and establish a conglomerate coffee or related business within short duration. The Pestle analysis for Dunkin Donuts can help any business gain that much needed competitive edge over its competitors.

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Online sources:

http://dunkindonutsnews.blogspot.com/p/pest-factors.html

http://haveacoffeebreak.wordpress.com/2013/12/04/pestel-analysis/

http://racompton.asp.radford.edu/Dunkin_Donuts_Plan.pdf