Domino 's Pizza Australia
(29 September 2014)
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Paper : BSCM 4.720 Business Strategy and Change Management
Word Count : 3,703
Executive Summary
The objective of this report is to analyze the business situation wherein Domino 's operates in the market and to obtain an understanding on the strategic analysis tools that can be used to acquire a new competitive advantage against their major rivals such as Pizza Hut, Eagle Boys, La Porchetta, etc. The intent of the assignment is to learn the factors that caused increase in profitability and sales and defining the actions necessary to further improve the QSR segment rank.
The strategic management tools used are
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It owns the sole master franchise privileges for the Domino 's trade name and system in several parts mainly in Australia, New Zealand, France, Belgium, The Netherlands, Japan and the Principality of Monaco. Globally, it sells more than 1 million pizzas a day in roughly 1300 stores across 6 countries, 9000 in over 60 countries and 600 over Australia and New Zealand. It functions as a quick service pizza restaurant whereby it is differentiated because QSR retailers are recognized as acquiring incorporated management with required standard menus and pricing unlike smaller outlets.
Domino 's has developed into becoming the fifth largest QSR chain in Australia by network store numbers (just behind Subway, McDonalds, KFC and Red Rooster) and the sixth largest in sales (McDonalds, KFC, Hungry Jack, Subway, Chicken Treat and Red Rooster). In 2004, it was acknowledged as the number one pizza company in Australia and the first to use a company-related phone name, - 1300 DOMINOS, in 2008. They consistently build up their success through profound innovations such as introducing an online ordering mobile site in 2011, commenced “Social Pizza” on their Facebook page which allowed customers to customize their pizza and became the most well-liked selection, and launched a Facebook app that allowed customers to rate their stores in 2013.
Domino 's recently encourage
The Australian pizza industry is among the most competitive in the world dominated by the market leader, Domino’s Pizza Enterprises Limited (Ibisworld 2013). Today, the publicly listed company is the principal largest, low cost, pizza chain in Australia operating four hundred and ten retail food outlets, employing over 21,000 employees Australia wide (Ibisworld 2013). The business currently provides customers with pickup and delivery pizza meal options offering customers the traditional methods of ordering such as telephone calls and in store walk-ins as well as a digital ordering service via online mobile applications and a desktop website.
The three greatest strategic challenges Papa John’s currently faces are competition, pricing, and meeting growth targets. As with any organization, they are continuously competing against other firms in their markets. The market is highly competitive with other retailers such as Pizza Hut, Domino’s, and Little Caesars also looking to create a competitive edge for their businesses. Although Papa John’s has created a successful brand they must still work at providing products and services which their competition cannot. Through marketing and technology they must understand their market in order to ensure they are staying true to their core values while providing more of what the consumer is looking for above their competitors.
Domino's Pizza is an American restaurant chain and international franchise pizza delivery corporation headquartered at the Domino Farms Office Park campus in Ann Arbor Township, Michigan United States, near Ann Arbor, Michigan. Founded in 1960, Domino's is the second-largest pizza chain in the United States (after Pizza Hut) and the largest worldwide, with more than 10,000 corporate and franchised stores in 70 countries. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. Domino’s Pizza offers customers a full menu to choose from, including four types of pizza crust (thin, hand-tossed, deep dish and Italian Style), Domino’s
Domino’s Pizza Enterprises Ltd has more than “….1400 stores across six countries, including over 600 in Australia and New Zealand. Employees over 26,000 full-time and casual staff across six countries, including 15,000 in Australia and New Zealand.” (Dominos IP Holder LLC, 2015)
Dominos Pizza’s mission statement is “Exceptional franchisees and team members on a mission to be the best pizza delivery company in the world.” it implement this mission statement by following a business strategy that-
Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America. It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold. Founded in 1960, Domino's Pizza is the recognized world leader in pizza
Regions - Domino’s stores are available across different regions (North, East, South, West) in India.
Domino’s pizza is a worldwide restaurant chain and pizza delivery company. Dominos rewarded me as a quality project manager to solve its quality management issue facing in the sore in New Zealand.
Domino’s Pizza history started over 50 years ago in 1960 and to date, has managed to open its 14,000th store worldwide (Domino's Pizza Singapore, 2017). Domino’s pizza proved to be one of the industry leader by keeping ahead of the market with its innovative technology integration, unique franchising methods. Domino’s Pizza has also strived to maintain business excellence through the affordability, delivery speed and accessibility of their pizza.
Strong brand awareness, controversial promotional activity, good service and quality innovative pizzas – are the components being valued by the company throughout the process of business expansion.
The profit per store can be decomposed into number of transations per store and profit per transation; the number of transations per store can be further decomposed into square feet per store and number of transactions per square foot. Unfortunately, I can’t find more detailed data of Domino’s. But Domino’s did make much effort on improving its efficiency. The executive vice-president of Domino’s international, Richard Allison, said that Domino’s is working on growing the number of transactions per store to improve its economic performance by produce innovation. "The only way to grow profitability is by increasing the number of transactions per store. We are not cutting back costs in advertising or training," he said.
Domino’s Pizza Inc. is a leading retailer of pizzas with about 12,000 stores as well as operations in 80 international markets. The company’s sales in 2014 amounted to $89 billion which was a significant success that earned that company Top 10 listing in the Entrepreneur magazine’s listing of great franchise opportunities. However, the company has in the recent times suffered a slump in sales owing to intensified competition and increased demand for healthy foods amongst its target market. The following is a review of the current challenges facing the company including recommendations for improvement in market communication for the company.
Different companies occupying the same market niche often provide similar products, but with very different marketing and production strategies. This paper will focus on the pizza industry and two very different companies offering ostensibly the same product – Papa Murphy’s and Mama Carpino’s. The first, Papa Murphy’s, sells
Firstly, I would recommend that Domino’s Pizza should shift the position to concern in healthier product. As the company has internal weakness in high fat contain and less organic food as well as there is a threat of changing customer habit for food consumption, as doing so, the company will minimize this threat and weakness and develop new strength. Healthier product will become new strength for the company. Moreover, the opportunity of leveraging supply chain & distribution system will help to introduce new product to the market. The new product should contain with organic product and use the local supply such as vegetables that available in the particular country in order to lower cost and maintain freshness.
Inventory control is the biggest challenge because of inappropriate inventory management system. There is a requirement of proper food service for better inventory control and also for identifying the important requirements. There is a need to develop the inventory methods for the products and with a standard inventory management company should try to minimize the wastes in terms of future. (Gartenstein, 2012)