Strengths of Domino's Pizza – Internal Strategic Factors

1. Good Returns on Capital Expenditure – Domino's Pizza is relatively successful at

execution of new projects and generated good returns on capital expenditure by building
new revenue streams.
2. Strong Free Cash Flow – Domino's Pizza has strong free cash flows that provide
resources in the hand of the company to expand into new projects.
3. Strong distribution network – Over the years Domino's Pizza has built a reliable
distribution network that can reach majority of its potential market.
4. Strong Brand Portfolio – Over the years Domino's Pizza has invested in building a strong
brand portfolio. The SWOT analysis of Domino's Pizza just underlines this fact. This
brand portfolio can be extremely useful if the organization wants to expand into new
product categories.
5. Superb Performance in New Markets – Domino's Pizza has built expertise at entering
new markets and making success of them. The expansion has helped the organization to
build new revenue stream and diversify the economic cycle risk in the markets it operates
in.
6. Automation of activities brought consistency of quality to Domino's Pizza products and
has enabled the company to scale up and scale down based on the demand conditions in
the market.
7. Highly successful at Go To Market strategies for its products.
8. Strong dealer community – It has built a culture among distributor & dealers where the
dealers not only promote company’s products but also invest in training the sales team to
explain to the customer how he/she can extract the maximum benefits out of the products.
Weakness of Domino's Pizza – Internal Strategic Factors

Weakness are the areas where Domino's Pizza can improve upon. Strategy is about making
choices and weakness are the areas where a firm can improve using SWOT analysis and build on
its competitive advantage and strategic positioning.
1. Need more investment in new technologies. Given the scale of expansion and different
geographies the company is planning to expand into, Domino's Pizza needs to put more
money in technology to integrate the processes across the board. Right now, the
investment in technologies is not at par with the vision of the company.
2. Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reasons why the days inventory is
high compare to its competitors is that Domino's Pizza is not very good at demand
forecasting thus end up keeping higher inventory both in-house and in channel.
3. Limited success outside core business – Even though Domino's Pizza is one of the
leading organizations in its industry it has faced challenges in moving to other product
segments with its present culture.
4. The company has not been able to tackle the challenges present by the new entrants in the
segment and has lost small market share in the niche categories. Domino's Pizza has to
build internal feedback mechanism directly from sales team on ground to counter these
challenges.
5. Not highly successful at integrating firms with different work culture. As mentioned
earlier even though Domino's Pizza is successful at integrating small companies it has its
share of failure to merge firms that have different work culture.