1.0.

Introduction

The American pizza restaurant, Domino’s Pizza lnc, is known for its delicious fast food
which was established in the year 1960. The business is headquartered in Michigan at the
Domino’s Farms Office Park located in the Ann Arbor. Dominos in the year 2018 was
awarded with the prize to have the largest place which is selling pizza globally which was
based on their marketing sales. Dominos is located in about 13,811 places which makes it
wide enough to provide their services. In regard to its location it is stands at the number 6th
position in being the largest fast food chain restaurants by their location numbers worldwide.
The concept of Dominos was started by two brothers, Tom and James when they bought a
restaurant in Ypsilanti, Michigan and turned it into Dominos however it was not initially
named Dominos as it was known as DomiNick’s till 1965 when it was renamed. Dominos
delivers most of its pizza’s in America with 1 million pizza’s per day are delivered. Dominos
offers their customers with both the delivers as in door-to-door along with take away from
their stores (Syed, 2016). The yearning of the consumers is full filled due to the efforts of
Dominos as they offer a wide range of Italian American food which fresh ingredients along
with a wide range of other options to choose from their menu.

2.0. Analysis

This section shall consist of SWOT analysis on Dominos which would help to figure out the
strengths, weaknesses, opportunities and threats of the company.

2.1. SWOT analysis of Dominos

1. Strengths:

The strength of Domino’s is that they are presently considered as the market leader as they
are providing the consumers with a wide range of pizzas compared to their competitors. Their
commendable image has resulted in the organization to gain more recognition. The taste of
their food is pleasing as they make use of quality products as well as consist of professional
staff and have a hygienic surrounding. They have been specialized in making pizzas which is
their strength. Furthermore, the level of motivation is very high in their employees which
help in making the organization more thriving. Dominos has been certified by the ISO which
stands for International Standard Organization. They are fully equipped and have plenty of
resources availability at all times (Syed, 2016). They provide various offers on their services
as well such as on home delivery services and in this section they have created monopoly.
Moreover, their most essential competitive advantage is that they are a restaurant that is fully
serviced which even offers delivery services which is unavailable in most of the competitors
against Dominos. Thus this is the reason that Dominos can easily market themselves in
diverse segments compared to other pizza chains.

2. Weaknesses:

The weakness of Dominos can also be considered by the fact that it is a restaurant as they
have high overhead costs which the competitors of the Dominos lack and do not have to deal
with. The reason can be blamed on the higher prices that is offered by the restaurant which
they are bound to charge as it known worldwide that Dominos does not a produce of lost cost.
They believe that they can easily rely on the quality as well as the service that they provide to
their consumers which can easily help them to cover the fact that they are offering food at a
high price. The consumers are given less range of products when compared to the prices as it
is very high as well as their focus in more on selling western cuisine taste rather than Eastern
which is also a weakness (Syed, 2016). Their few outlets provide the facility of dine-in and
the menu which they are offering is very pricey and limited and merely a few items can be
bought on budget.

3. Opportunities:

Opportunities are more than Dominos can expect and they keep on exploring different ways
which would results in their success. Dominos should consider working on Eastern cuisine as
the taste would be different from the Western food which they are currently offering.
MacDonald’s is offering eastern taste as well and to have a competitive advantage over them
they should include the cuisine in their menu. Their market share can be increased through
new products diversification. The prices are very high and most of consumers do not feel like
buying from them as they can buy similar food at a cheap price thus they should reduce their
prices and sell more food. They should launch new restaurants which should be located at
busy places which would help in attracting more consumers. Offering low priced menu cards
for marketing is a good idea with discounts and prizes as promoting also helps the business to
become more stable and to gain extra profit (Rosen and Phillips, 2011). The market of fast
food is evolving each day and new generation definitely prefers the fast food especially pizza
thus it is great opportunity to let everyone know that they stand strong with their taste and
quality by introducing new varieties every month and add more items to their food menu.
They should have big outlets to accommodate their customers as most of their outlets are
very small when compared to their competitors thus it is a loss for them as well as the
customers who are unable to taste their great food. They should introduce take away counters
which would help the consumers comfort level.

4. Threats:

The threat level is high as the competitors are are than one can imagine. Presently Pizza Hut
can be considered as the closest competitor of Dominos as they are constantly opening their
branches everywhere. The advantage that Dominos has over Pizza hut is that even though
they are pricey yet they offer less price than Pizza hut when allows most of the consumers to
prefer Dominos over Pizza hut. In regard to some of the facilities Pizza hut is considered to
be better than Dominos which makes it place in the market to be unstable and affects their
revenue as well. The advantage pizza hut has over dominos is based on their ability to
provide the facility of dine-in which makes it a better option than Dominos. Another threat
Dominos is facing is from the entrance of Papa Jonh’s in the business as they are also
preferred by many as they are giving a tough competition to the previous fast food restaurants
(Syed, 2016). Quality matters a lot and if another competitor is offering something to the
consumers at a lower price than it can result in loss for Dominos.

2.1. Porter's Five Forces Analysis of Dominos

Dominos is facing a hyper competitive situation in regard to all the services that they are
providing as new entrants are entering in the market and old competitors are providing better
quality and facilities thus sustaining itself in the business market is not an easy task. Though
pizza is considered as all-time favourite of people and it would be a profitable business yet it
comes with many difficulties and hindrances which Dominos need to overcome. The threat of
rivalry is very high in the food industry as everyone is making sure to stand at the top of the
business industry (Mohapatra, 2012). Pizza is commonly liked by people thus they can head
out anywhere to eat it and Dominos need reasons and strategies which would ensure that
consumers would only prefer them and not anyone else. Thus this section shall perform
Porter's Five Forces Analysis on Dominos which would help in figuring out the impact of a
company’s profitability in the market. The Porters five forces is regarded as a framework
which is based on an all-round strategic decision and here it would help to know how
Domino’s Pizza, lnc can maintain itself and gain competitive advantage in the eateries
industry. It involves five forces which are threats of new entrants, bargaining power of
supplies, bargaining power of buyers, threat from substitute products and rivalry among the
existing players.

1. Threats of New Entrants

The threats from new entrants is obvious as when they enter the industry they bring various
new innovations with them as well as new ways of doings things which is putting a lot of
pressure on Domino’s Pizza, lnc with their low cost strategies. Their reduced cost is
worrisome for Dominos especially when they provide the consumers with new propositions
and provide quality at a cheap price. Domino’s Pizza is trying their best to tackle these
challenges and build an effectual barrier which would help them to defend their competitive
edge. They can tackle their threats by introducing innovative products and services, they
should build economies of sale which would help in lowering the price which is fixed and
spending money on R& D would also help in keeping a competitive advantage (Mohapatra,
2012).

2. Bargaining Power of Suppliers

Suppliers play an essential role in every industry and just like other restaurants Dominos also
buys their material from suppliers. If Dominos is unable to bargain with the suppliers then
they would have to buy stuff at a high price which would eventually results in high prices on
the food that they sell. Thus tackling the powerful suppliers through negotiation is difficult as
they are masters in extracting high prices from restaurants and it highly affects the
profitability of restaurants.

3. Bargaining Power of Buyers

Buyers usually demand a lot as their business is based on buying best offering however only
when the price is reasonable for them and is as minimum as possible. This affects the
profitability of Dominos regarding their long run. Thus they need to build a large base of
consumers as well as innovation in their new products rapidly to handle this aspect.
 4. Threats of Substitute Products

It is clear that with many people working in the fast food chain most of the restaurants are
bound to have similar products or services however many people suffer in the process. The
threat in this regard is very high especially when the substituted product is offering a valuable
proposition which is diverse from their current offering.

5. Rivalry among the Existing Competitors

Rivalry is high in the food industry as there are many players in the field which makes
working in this environment intense and eventually affects the prices and decreases
profitability. The operating of Domino’s is in a very competitive industry as many restaurants
are offering similar features. Thus the overall long term productivity and success is highly
affected and the organizations suffer.

2.3. VRIN framework on Dominos

There are particular sources that provide the business with competitive advantage and it can
be evaluated through the VRIN framework. VRIN focuses mainly on four significant
qualities such as: value, rareness, imitability and non-substitutable. VRIN is an effective tool
used to analyse Dominos in this section:

1. Value:

In this aspect resources that bring value can be used as a competitive advantage and it is to be
remembered that not every resource can be obtained easily. The brand value of Dominos is
the main strength of the company and their value is known globally. They are regarded as the
second largest pizza brand that is currently operating in 71 countries. The popularity is
becoming more and more and the company is able to sustain their value and belief (Dey,
2016).

2. Rareness:

The resources that can easily be assessed by all of the competitors would rarely provide any
essential competitive advantage. Dominos consist of their personal value chain system along
with their strategies and it is very rare to find it in the industry. Such as, Dominos consist of a
unique strategy and they have teamed up with the AT&T technology network and this
association helps them to identify the incoming calls and their addresses of nearby outlet is
also tracked which aids in making the delivery quicker. The time for tracking is between 7-11
seconds which is quick in locating (Dey, 2016).

3. Imitability:

Imitability is regarded as an ideal source which is unable to be acquired by competing

businesses. It is difficult for other companies to exactly imitate Dominos and the system
which they are using. The company has their own system which they have setup after hard
work and managing every single detail to make the management of their organization
effectual which involves production and logistics (Dey, 2016).The designing of the supply
chain is done in such a manner that it would automatically maximize the potential of the
company’s resources which would include more cost for the other organizations if they try to
imitate.

4. Non-sustainable:

This aspect involves the fact that any resource cannot just easily be substituted by any other
resource. It is difficult to replace things and such is the case in Dominos as it would be a risk
of exchanging stuff and without the proper assessment of the companies system this risk
could lead to a great loss which goes for the competitive companies of Dominoes as well
(Dey, 2016).

2.4. Growth strategies adopted by Dominos

Dominos has a strategy to target every one of every age or gender while its competitors make
use of family packed product strategy to gain consumers. Though there are many food chains
in the industry however only a few are in competition especially Pizza Hut which will always
try to compete with Dominos as they try to make their products cheap with better quality.
Dominos try their best to offer new products to their consumers which involves innovation
with their food such as crust or stuffed pizzas. Vegetarian pizzas day is also celebrate where
meat-free pizza is served which is a strategy to attract vegetarian lovers (Jham and Tandon,
2012). The Ansoff matrix shall be applied to Dominos to get a deeper understanding of their
products and marketing. The Ansoff matrix consists of the following 4 aspects which are as
follows:
  Marketplace penetration – current invention into current marketplace. The
supervisor focuses to enhance the marketplace percentage, with products that are
presently available.
 Marketplace development – existing invention into novel markets. It is targeting
both manger, current advertising and distributing the channel along with others.
 Product improvement – the new products would be shifted into present marketplace.
There the right time is considered to be the principal situation “time to market”, how a
good deal time it's miles going to take to expand new product and to cover the value
quickly;
 Diversification – new product into new market and this is strategy is with higher
danger of all techniques (Jham and Tandon, 2012).

The Ansoff product-marketplace scope matrix as proven within the parent above
demonstrates the selections of strategic course open to a company through locating the
business into the matrix in dimensions: product and marketplace. The matrix provides four
product marketplace strategies: market penetration approach, product development strategy,
market improvement strategies and diversification techniques (Hussain et al, 2013).

For Domino’s Pizza, it is strategic growth in the local marketplace must be considered as a
marketplace penetration method. this is because the product “pizza delivery” is not new and
the corporation were focusing on presenting the product for a long term and additionally there
may be already a properly mounted industry there and also in time period of the marketplace
method, the enterprise on this plan will intention at enlarge its marketplace percentage in the
market because of this that the marketplace to be centred is also not new. For corporation that
makes use of a market penetration approach to grow its enterprise, it will mean an approach
of increasing market proportion inside existing markets and segments. Growing promotional
and sales expenditure is probably used to achieve this objective. There are foremost ways that
Domino’s Pizza will benefit more enterprise growth: the primary way is to benefit enterprise
boom collectively with the increase the short food industry in even though it's far slow; the
second manner is to take over some of the competition’ maker share to feature to the
organisation’s proportion which is an vital and key way to a as a substitute matured
marketplace like the short food enterprise (Hussain et al, 2013). By means of adopting this
approach because the direction of enterprise boom, it would imply a series of relative
marketing attempt which include more the use of penetration pricing, promotional activities
and distribution channel growth and protection.

References

Dey, K., (2016). The fast food industry in the UK. Analysis of Dominos and McDonalds with
PESTEL, VRIN and Porter's Five Forces.

Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., (2013). ANSOFF matrix, environment,
and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
pp.196-206.

Jham, V. and Tandon, S., (2012). Domino's Pizza India Ltd.: Driving Business Growth
through Consumer Engagement. Asian Case Research Journal, 16(01), pp.39-63.

Mohapatra, S., (2012). IT and Porter’s Competitive Forces Model and Strategies.
In Information Systems Theory (pp. 265-281). Springer New York.

Rosen, P.A. and Phillips, M.H., (2011). Marketing and the rise of Web 2.0: Expanding
opportunity, increasing challenge. The Review of Business Information Systems, 15(3), p.35.

Syed, I., (2016). SWOT analysis and operation management decisions of Domino's pizza.