Case Study – Tech with a Side of Pizza: How Dominos Rose to the Top

PORTERS FIVE MODEL ANALYSIS

Threat of New
Entrants

Bargaining power of
Rivalry among existing Bargaining power of
suppliers
competitors buyers

Threat of substitutes
products or services

1. Threat of New Entry – Since the international market was evolving, this
gives benefits to different food restaurant industry as they have to focus
more on the new quick service chains, traffics and burger chains were
also entering in this market because of this market becomes more
competitive. Therefore Dominos still providing same flavour and same
recipe at the low price and ingredients without any innovations. Also the
customers were shifting to other food chains for filing their stomach and
needs.
2. Threat of Substitute Products or Services – There were many options
(substitutes ) available to the dominos like Subway , Pannera Bread ,
KFC, Popeyes , the Burgers serving outlets like MC Donald’s , Burger
king , Wendy’s , Sonic Drive-in , Arby , Hardees , Jack in the box , For
snacks Starbucks , Dunkin others as well as sandwich , chicken parlous
Chick-fil-a, Taco Bell which were serving full meal to its customers at
very reasonable and cheap price as compare to the Dominos.
3. Suppliers Power – The new CEO of the company David Brandon has
revamped, redesign the store design and overhauled the senior
management team. They opened their first international store in Canada
and serve countries across the world .They have international master
franchisees. They employed the local citizen to handle the work and
preparing the dominos. They buy their ingredients local from their near
to market to prepare the pizzas as well the third the segment of
dominos was the supply chain business. The company sold ingredients to
all US and some to the international stores of the dominos.
4. Buyer Power- Dominos was uniquely positioned in the minds of
customers during the covid pandemic so the dominos became the
quarantine food it travels well, can feed a whole family and pioneered
the number of ways to safely get the food to its customers including
contactless delivery. Following year of technology and fortressing
expansion strategy, which clustered location to minimise delivery
time/pick up delivery. Dominos also kept the menu relatively simple and
avoided too many new product launches. Dominos became known for
made the company digital ready in a lot of ways. Now customers can
order pizzas from smart phones, a smart watch, a smart TV, even a
smart car.
5. Competitive Rivalry – For the dominos there were many competitors
which were serving the food to the customers at the best affordable
price like frozen pizzas , pizza hut , little Caesars , Papa johns pizza were
the competitors to the dominos as they were innovating their recipes
which the customers are liking.