UNIVERSITY OF LUCKNOW

INSTITUTE OF MANAGEMENT SCIENCE

( NEW CAMPUS)

SUBJECT – DOMINOS STRATEGY ANALYSIS

Submitted to- Submittted by-

Dr.Smita Singh Prashant Kumar

Chaurasia
MBA FC 3RD Sem.
Roll NO 51
 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me in this project.
I am thankful for their aspiring guidance, invaluably constructive criticism and friendy advice during the
project work. I am sincerely grateful to them for sharing their truthful and illuminating views on a number
of issues related to the project.

I express my warm thanks to Dr. Smita Singh Maam for their support and guidance

I would also like to thank all the people who provided me with the facilities being required and
conductive conditions for my MBA project.

Thank you,
 DOMINOS PIZZA CASE STUDY

1)Overview..

The Domino’s Pizza Company is an American chain of restaurants that provide international
franchise on pizza delivery. The company was started in 1960 and is among the largest pizza
distributors in the United States and the world. The company founder borrowed $900 to rent a
store and used a Volkswagen beetle as the delivery van for the first orders. Presently, the
company has about ten thousand stores worldwide with a massive expansion strategy for growth.
It has managed to beat the common competitors such as the Papa John’s Pizza and Yum Brands
(Domino’s Corporate 2014).

By 2010, the company had managed to withstand a strong competition and harsh criticism
regarding the taste of the pizza and the future looked bright. Though, low level of consumer
satisfaction played against the company revenue. The management decided to adopt strategic
marketing plan and spent millions to create a new type of pizza from crust up. This strategy
resulted to amazing outcomes with advertising the new expanded menu. From the year 2000 to
2013, the customers’ satisfaction index in the American market for Domino’s Pizza rose from
69% to 81% which, in turn significantly improved the company revenue. The main question to
the competitors remained how the corporation was able to plan for a strategic turn around in its
business operations (Smith 2001).

2) Strategy chosen

Corporate Mission and Vision Statement

Domino’s pizza vision and mission statements were designed focusing on delivering quality
services to customers effectively for the sake of company’s growth.
The vision and mission statement states that:

The company’s goal was to maintain high standards in the international supply chain for pizza
delivery and provide the experience of excellent products in excellent customer service. The
company termed itself as having exceptional people to serves the best pizzas in the world for
more fun. The vision of the company was to be the best operator a in pizza delivery and hire the
most skilled professionals (Datamonitor 2008).

The company’s values had a great focus on people and offered to provide satisfaction all aspects
of stakeholder’s analysis. Producing the best with less resources and treating everyone the best
has helped the company to measure, manage and share with every stakeholder.

3) Strategy implemented

The amazing turn around for Domino’s was attributed to excessive strategic marketing efforts to
improve the company performance through introducing new recipes in their menu offerings.
These efforts were heightened by the use of mobile technology in their attempt to attract new
customers and improve the supply chain management operations. Consequently, the company
top line management improved to make it the 4th largest electronic retailer in the United States
(Hoffman et al. 2012).

The main competitive advantage of Domino’s has always been its ability to deliver pizzas to
customers quickly. In order to deliver effective and fast services, the company had relied on
frozen and pre-made ingredients. This strategy has allowed the company employees to assemble
the pizza products in a record short time, although, it had an adverse effect on the quality of the
products. Due to deterioration of quality, some customers begun to recognize the competitors
such as Pizza Hut as having the best-tasting products and only relied on Domino’s for fast
delivery (Vlcek & Davidson 2012).

In 2010, the company CEO Patrick Doyle decided to provide a resolution for improving the
pizza recipe and had to test several ingredients even from the rivals in order to decide on the
right recipe. In the marketing strategy for the new pizza, Domino’s had to implement an honest
marketing crusade to apologize to the customers over the old pizzas. The mobile application that
allowed the user to design their own pizza was developed to attract new customers (Thompson,
Peteraf, Gamble, & Strickland 2012). As a way of protecting this core competence, the
management begun revamping the online tracking system in order to reduce delivery time to
their customers. The results were surprising and by the end of the first quarter in 2010, there was
a 14.3% increase in company’s revenue and the company’s stock price increased by 400%.

4) Strategy implication

Domino’s pizza has utilized the SWOT analysis strategies in its operations for a long time.
TOWS matrix has been a useful tool as it has provided the company with effective ways of
developing specific strategies in order to address the results of its initial SWOT investigations.
The SWOT analysis has helped the company analysts in identifying the negatives and positives
of the organization in both the external and internal environment.

From the SWOT analysis, the SO (Strength-Opportunity) strategy enabled the company to use its
internal strength to exploit the opportunities available in the environment. For instance, the
company sought a creative team that had impressive list of skills in the technical and
professional aspect. The company is also versed with the business side of the project with the top
management comprising of business consultants and long serving employees. Lastly, the
company also have strong financial base that has enabled it to participate in the economic
projects such as 12 week’s campaign zodiac and Arena agencies.

The WO (weaknesses-opportunity) strategy has provided the company with an opportunity to

reduce the internal weaknesses and apply the external opportunities to maximize on their
performance. Domino’s has used its weaknesses and opportunities to gain access to strategic
businesses. Some of the weaknesses include human resource being so strained, though this has
turned to be an opportunity for the company to expand its services far and beyond.

The ST (strengths and weaknesses) strategy has rarely been used by Domino pizza in its strategic
operations. However, the customer delivery services have been a challenge especially due to the
distance to potential customers and the stores. This has proved quite a challenge, but the
company has resolved to always satisfy the customers regardless of the situation. However, this
approach has made the company to lose some revenue despite matching its mission with its
activities (Douglas 2012).

The WT (weaknesses and threats) strategy is one the most defensive strategy that the company
has least used. This strategy pertains to creating a plan to avoid threats and reduce the
weaknesses in the company’s operations.

5) On company”s competitors

Domino’s strategy has worked due to its focus on building a strong competitive advantage
without losing the old competitive advantages such as fast delivery services. This technique has
enabled the company to deliver the best value despite the rise in the level of competition. It is
important to note that among the world’s largest pizza companies, Papa John’s has tried to
capture the market share away from Domino’s and Pizza Hut through differentiation of its
product with natural ingredients and providing a diversified top up option (Datamonitor 2008).
However, due to the presence of Domino’s in over 80% of the North American location, the
company has managed to diversify its presence to increase its growth opportunities that are
available in the emerging markets. Domino’s had a lot of growth opportunities and has increased
its aggressiveness in growth to allow for expansion.

Despite the rise in the level of competition, Domino’s long term plan and focus to build a
competitive advantage has always enabled it to develop the best economic moat. The Company
has continuously offered an interesting proposition value and plenty of growth opportunities that
are available for its customers in the local and international markets. In addition, proper
satisfaction of the company’s human resource has greatly increased the level of motivation of the
employees to make more sales and present quality services to the customers 

According to Mergent Online (2013), the main competitors for Domino’s Pizza include
McDonald’s, KFC, Pizza Hut, McDonald’s, Subway, Burger King, Smokin Joes, TacoBell, Papa
John’s Pizza and Papa John’s. From these companies, Domino’s Pizza has encountered little
competition from the possible new entrants in the industry due to its mature state that has
possibly reached the saturation point in domestic and foreign markets.

Figure 1: Sales comparison for Dominos and the competitors

Company Sales (2011) Sales (2012) Sales (2013)

1.Domino’s Pizza $ 94.7 million $ 169.7 million $ 190.7 million
2.Pizza Hut $ 37.0 million $ 47.9 million $ 57.0 million
3.McDonald’s $ 87.0 million $ 93.0 million $ 97.0 million
8. KFC $ 97.7 million $ 127.0 million $ 148.0 million
According to the sales report for the four major restaurants for the three consecutive years
provided, the Domino’s appears to have doubled its sales focus after introducing the online
advertising and order making. Its efficiency in delivery has also increased its ability to deliver
pizzas immediately to the customer while still hot.

6) Conclusion

According to analysis of the strategic options for Domino’s, the future of the company appears to
have a greater potential to generate revenue to ease the high leverage ratio the company holds.
Strategic marketing and positioning has been the best strategic tool that the company can use to
maximize its potential of becoming the market leader. The proposal to introduce a loyalty
program with the customers can boost the sales and customer loyalty to a great extent. Having a
strong customer base is the basis for effective sales that any company strives to achieve. In
addition, the less saturated Chinese market provides a very high sales potential to the company
regarding its expansion strategy.

7) Refrences

Websites:-

https://en.wikipedia.org/wiki/Domino%27s_Pizza

https://thesisleader.com/essays/the-dominos-pizza-company/

https://www.iiscm.org/blog/post/355/domino-s-case-study.html