Running Head: ASSESSMENT ITEM 3

ASSESSMENT ITEM 3: STRATEGY CHOICE OF DOMINOS

 
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Table of Contents
Executive Summary...................................................................................................................2

Background Information of Domino’s.......................................................................................2

Identify and evaluate the suitability of the organisation’s current strategy...............................3

The major strategic decision made by Domino’s...................................................................3

Recommendations (two alternative strategic initiatives)...........................................................9

Conclusion................................................................................................................................10

References................................................................................................................................12
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Executive Summary
Strategic management is the critical concern in dealing with the competitive
environment and responding to the rapidly changing business environment. Besides, the
continuously changing customer requirement and business challenges has necessitated coping
with the enforcing threats with competitive and sound strategies to moving towards a
strategic direction or organizational successful survival. Similar to the other industrial
changes and influential competitive forces, the Pizza industry has numerous local &
international companies like Pizza Hut, Greco and Papa John’s and Domino’s. The strategic
choice of Domino’s has been analyzed in this paper against the feasibility and suitability of
its current strategies in deterring the suitability in response to the competitive environment of
pizza.

Domino’s is one of the effectively recognized brands in the pizza industry that news effective
consideration of the strategies and its implication in dealing with the financial synergies and
meeting the prerequisites of the targeted audience. The strategic choices made by Domino’s
are found to be effective and productive enough in supporting its performance throughout.
The in-house efficiency and support including effective approach in harnessing the technical
comprehension and people centric approach benefited the company. However, the
requirements of modern business are rapidly increasing that creates room for strategic move
towards innovative improvement. Two strategies are recommended expecting to be beneficial
for strategic growth of Domino’s.             

Background Information of Domino’s

Domino’s Pizza Inc, 1960 is the American multinational pizza restaurant chain,
formerly known as Domino’s headquartered in Michigan. It is the second largest and leading
company independently operating in more than 85 markets. Founded by Tom Monaghan, the
pizza company has more than 17000 stores worldwide with a wide range of products in the
fast food industry (Dominos.gcs-web.com, 2020). However the company has been
categorized to perform in fast food delivery, franchising and restaurants. The organization is
significantly operating with its products and has been recognized more prominently as it sells
more products beside pizza if compared to any other company. The key people of this
company are David a Brandon, the chairman, Richard Allison the CEO of Domino’s (Fang &
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Zhang, 2019). Domino’s offer a wide range of fast food and beverages including, different
types of pizzas with additional dressings and toppings, chicken by-products, pasta,
sandwiches and desserts.  Accounted from FY19 the total revenue of Domino’s is US$3.618
billion, with a total asset of US$1.382 billion. Besides the operating income of Domino’s is
US$629.4 million with the net income of US$400.7 million.

Domino’s has been operating with different tag lines in accomplishing its mission and aspire
vision effectively. The strategic mission of Domino’s is to become the leading off-premise
pizza delivery company harnessed with customer convenience in the global platform. The
effective operations team of Domino’s has been working in meeting the mission by
comprehending on customer satisfaction, quality and price of the offerings.  The strategic
vision of Domino’s is currently focused on customer’s satisfaction, sustainability by
maintaining high standards of quality and standards of the international chain.  The company
currently considers its supreme goal to retail the customers and improved customer
relationship management besides expansion and global growth. It is expected that the
company will be able to realise its objectives with effective strategic moves.  

Identify and evaluate the suitability of the organization’s current strategy

Domino’s is the second largest pizza restaurant chain in the global platform after
pizza hut as pizza hut is still the dominant player in this fast food industry. In computing with
the free and forced by environment and the rivals it will be critically important for Domino's
to make a strategic move towards growth and expansion to become the leader of the industry.
The board members of Domino's including David a Brandon and Patrick Doyle the president
the strategies are incorporated under the corporate governance of the organizational structure
(Franceschelli & Santoro, 2017). The company is in the bottom line focused on the
implication of mission statement by increasing its strategic position in the extractive industry
leveling on the strong brand recognition and resonance effective optimization of the
domestics store base and continuous growth of international business. In accomplishing the
objectives taken into account by Domino’s the major steps taken are described in the
following points analyzing the suitability against the objectives.

The major strategic decision made by Domino’s

Organizations implement the strategies against the results in curd from the different
environmental analysis and position performance of the company. Likewise Domino's have
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implemented the strategies incompetent to the previous performance and make a strategic
move towards improvement. It has to be mentioned that the company's strategies are implied
focused on three particular areas that are to respond towards competitors by strategically
positioning international expansion and customer satisfaction. For instance the major
competitors of Domino's pizza are Pizza hut and Papa John’s who are dominating the market
and affecting the performance of Domino’s in the significance Domino's is critically
responsible to respond its competition with sound strategies and perform dual in the market.
Major strategies incorporated by Domino's are described in the following points:

Market penetration:  

As has been mentioned before the pizza market is dominated by different strategic factors and
the analysis of Domino's internal and external environment offers the idea where it has
different strengths including strong and empowered brand equity effective business model
marketing practices effective and integrated supply chain system pricing range that is an
opportunity for expansion and improving its strategic direction. Increasing footprints in the
existing market by increasing the stores was the simple strategy to position itself in the
attention of customers (Kaur & France, 2018). The strategic factor analysis of Domino's
refers to the company creating new types of pizzas in order to meet different customer
preferences and dealing with increasing sales on the online platform by offering special
promotions. Thereby this significantly shows that the company has significant stability and
competitive positioning that can do effectively well in the existing market. The strategy of
market penetration has been performed effectively for Domino's as it has influenced the
market sales and strengthens the company’s brand resonance among the customers with the
competitive significance.   
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Figure 1: Strategic position of Dominos

(Source: Kaur & France, 2018)

GRAND matrix:

In relevance with the global performance of Domino's it has been evident that the company
has been to be able to position itself in the competitive space where the industrial growth rate
seems to be high and the company have relative strong considerations on the domestically
owned stores supply chain and franchising.  This entails the efficiency of Domino's divisions
of the market in the forums of market growth and competitive position. In the particular
setting of a company's competitive position the company's strategy is a low cost and reward
system that is critically making effective benefit for the company (Shumba & Zindiye, 2018).
The major component of Domino's is viable in comparison to other brands' outlets as it has
premium designed outlets and offers the products in lower casts. Rapid market growth and
strong competitive positioning can be considered to be fruitful for the organizational success
and mission accomplishment.   

Figure: Digital innovation on Dominos

(Source: Dominos.gcs-web.com, 2020)

Reinvented products

Having better code product is necessary in the pizza recipe as Domino’s has witnessed
different challenges in meeting customer preferences and requirements it has come up with
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reinvented products. Product development is always an effective move to strategically grow

in the market. Domino's has effectively channelized its vertical integration and pizza recipes
by offering different product lines that complement pizzas. Pizza core 4 is to meet customer’s
requirements and leave the global market with effective performance efficiency. In
accomplishing the strategic direction Domino’s have channelized reinventing products to
align its customers and preferences towards directly e through the offerings. For example a
few years ago different cases of thick crust of pizza were the core concern of the company as
it was the highest peak in the complaint list of customers (Chen, Reniers & Khakzad, 2020).
Besides fewer toppings and other challenges in the product quality has been the core concern
of Domino’s. The strategy of reinventing products has challenged the operation of the
company and how it was proven to be suitable for directly influencing customers taste and
preferences and increasing loyalty towards the brand effectively. This strategy can be
considered to be suitable and effective as it has been evident that Dominos specialty chicken
has driven the sales in a prominent manner.

Effective marketing and digital partnership

Marketing plays the most effective role in the performance of multinational businesses like
Domino's. One of the strategic changes Domino's made in becoming the global top pizza
chain includes better marketing. Domino’s has considered improving the quality of its
products that can help in driving sales while offering effective value to the customers can
help in dealing with the practices more evidently. The intensity of the competitive rivalry of
pizza hut has been at stake in dominating the promotional terms of Domino’s. What is the
significance of digital competencies and investment in the promotional marketing activities
Domino's has planned for align investment in the application for their online delivery
(Akhter, 2019). In bettering the market Domino's has tripled the amount of online
advertisement investment that basically targeted the social media platforms college humor
and MySpace. However it has to be noted that pizza hut has already developed the
application that has duly dominated Domino's practices on the online track forum.
Completing the customer centric approaches and dealing with customers changing
requirements it was critically important to respond to its customers and continue to
participate in the advertising words on the major competitors like pizza hut and Papa John’s.
Marketing with digital assistants is one of the focal areas of modern business practices
however Domino's is required for the improvement in this area as it has further opportunities
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of strategizing its growing directions comprehending with the threats of existing competitors
substitute and local pizza brands.

Figure 2: Dominos campaigns

(Source: Dominos.gcs-web.com, 2020)

Innovative and creative online delivery system

Domino's have one of the critical priorities of becoming the world's leading delivery system
and it has been taking initiatives and necessary steps on offering its delivery dual. The tagline
associated with Domino's says delivery within 30 minutes or free is one of the catchy and
creative campaigns pizza hut for target audience and retain its customers in an effective
manner. Strategically located Domino's outlets are effectively vertically integrated that
supports the supply chain system and serve its customers in the best possible way. Besides,
distribution is one of the focal areas of marketing strategy of Domino's that supports
Domino’s turnaround time as an advantage that helps Domino's to respond to its competitors
with sound strategies. Because of the presence of different fast food options Domino’s have
been finding it difficult to generate its customer base and deal with the market size. Effective
campaigns of Domino's such as painting for pizza 2018 has been centered on the issue of
potholes in the United States cities (Praxedes, 2016). The strong brand equity helps Domino’s
to offer campaigns and creative ideas on generating targets. The campaigns like the official
food for everything the wedding registry Don Johnson ‘the power of emojis’, Domino’s night
in for fashion week and the autonomous pizza robot duly contributed to the retail sales and
can be considered to be suitable for me to be productive for Domino’s.
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Figure 3: Crowd sourcing Pizzas through social media

(Source: Static1.squarespace.com. 2020)

Recommendations (two alternative strategic initiatives)

In relevance with strategic choice and implications it has been evident that in 2019,
Domino’s is playing one of the leading brands in the global forum of fast food delivery.
However it is important that the brand continue to focus on making strategic comprehension
that will contribute to the company's betterment in future (Yadav & Avhad, 2020). The
consistent progress of Domino’s has helped it to surpass Pizza hut in 2017 though it had less
domestic units, 2000 to be particular. The marketing strategies of Domino’s needs
improvement as it have room for improvement:  

Utilizing its strengths in the marketplace:

Strategically located Domino's have significant marketing position is effectively aggressive

and competitive for the market comprehension. In accordance with the strategies implied
considering financial stability and competitive position Domino’s is sharing the same place
with pizza hut and it needs to use its market place and strengths accordingly. Utilization of
market strengths bi market development and product development strategies can be suitable
for Domino’s. Besides possibilities in expanding in India and China as the company already
has different franchises there the company can relatively improve its marketing position and
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share and industry sales growth. In accordance with the strengths and position of Domino's it
has been evident that the company has significant opportunities of developing varieties in the
new and low calorie vegetable pizzas to cover the health sensitive customers (Wenji, 2019). It
has been evident that Domino’s is empowered with product and technological Innovation and
an integrated supply chain system. Additionally strong brand equity offers Domino's with the
significance of intelligent marketing services that can be helped in performing through
market development and new product alignments.

Cost leadership:    

Domino's have effectively large market share in the rapidly growing fast industry. Domino’s
have different products that can be categorized under the star products that generate huge
capital for the company. This in turn drags attention that the company has a significant
domestic supply chain and positioned itself in the premium system along with its franchise
company. The company critically needs to maintain this position and in maintaining the
domestic supply vertical integration of the company cost leadership strategy needs to be
applied. Cost leadership is driven by efficiency, size , square scope and humiliating
experience of an organizational performance that establishes competitive advantage by
incorporating lowest cost of operations and productions in the industry (Teoh, 2019). This
can benefit Domino’s to maintain its strategic position and maintain its market share
effectively. Beside, significance of performing with the social aspects has helped Domino’s
prominently.
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Figure 4: General Improvement concerns of Dominos

(Source: Teoh, 2019)

In accordance with the analysis it can be stated that the two alternative strategies can help
Domino’s to improve its practices effectively. On the basic grounds it can be suggested that
the company e can focus on its in-house operations such as communication strategies,
employee engagement Human capital management and sustainability aspects can help the
company. Making improvements in these areas and strengthening the in-house practices will
hardness improve operational base with organisational critical performance areas for father
strategic improvement. It is expected that these recommendations can help in generating
future financial synergies and successful survival for Domino’s.

Conclusion
In respect the analysis presents the significance of Domino's it has been evident that
the company has implemented significance strategies throughout the years in computing with
its competitors and environmental forces in realising its objectives successfully. The analysis
has represented the particular strategies incorporated by Domino’s in accomplishing its three
prior areas of business including international expansion response to competitors and
customer centric approach in meeting customer satisfaction. The major strategic moves
performed by Domino’s considered the importance of marketing penetrated effective
marketing strategies grand matrix application towards market growth and competitive
position and reinventing the products. The alternative strategies including utilisation of
organisational trends in the marketing place in covering the areas and implication of cost
leadership can duly help the company to improve its further performance in a successful
manner.

 
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References 
Akhter, K. (2019). The role of digital marketing platform (Facebook, Instagram, Twitter) on
the success of Domino’s Pizza Bangladesh.

Chen, C., Reniers, G., & Khakzad, N. (2020). Cost-benefit management of intentional
domino effects in chemical industrial areas. Process Safety and Environmental
Protection, 134, 392-405.

Dominos.gcs-web.com. (2020). Retrieved 8 May 2020, from https://dominos.gcs-

web.com/static-files/020eed02-b06c-4314-8d9c-5fcab09fc748

Fang, H., & Zhang, Y. (2019, August). Domino’s Shareholder Value Analysis in Australian
Market. In 1st International Symposium on Economic Development and Management
Innovation (EDMI 2019). Atlantis Press.

Franceschelli, M. V., & Santoro, G. (2017, September). SUSTAINABLE BUSINESS

MODEL INNOVATION: AN OPPORTUNITY FOR THE FOOD INDUSTRY.
In 10th Annual Conference of the EuroMed Academy of Business.

Kaur, H., & France, A. (2018). Gaining a competitive advantage in the fast food industry.

Praxedes, S. G. S. F. (2016). Domino’s Pizza Portugal: a case study on the price disclosure

strategy of a late entrant (Doctoral dissertation).

Shumba, K., & Zindiye, S. (2018). Success Factors of Franchise Entrepreneurs Operating in a
Volatile Business Environment: A Case of the Fast Food Industry Harare,
Zimbabwe. The Social Sciences, 13(4), 908-91.

Static1.squarespace.com. (2020). Retrieved 8 May 2020, from

https://static1.squarespace.com/static/5bd052c7c46f6d0e23b11afb/t/5d5c7b89c3e6df0
001a41d2c/1566342143706/FY19+Appendix+4E++Annual+Report.pdf

Teoh, W. (2019). The Market Risk on Domino's Pizza Incorporation's Peformance.

Wenji, T. (2019). Market Risk on Domino's Pizza Incorporation's Performance.

Yadav, R. R., & Avhad, S. M. (2020). Retail Strategy and Franchising.

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