Donut Stop: Local Competition From A National Chain

Abstract

This case applies undergraduate intermediate microeconomic competition fundamentals to the situation of a dominant local firm competing against a national company. The case presents details of a donut company with multiple locations in a mid-sized city competing against a national chain with more than 175 stores. Price, location, attribute differences, firm-service differentials, and differentiated subjective image in the form of advertising are the primary forms of competition explored in the case.