Strategic Profile and Case Analysis Purpose
Dominoes was found in 1960 and headquartered in Ann Arbor, Michigan. Domino’s Pizza Inc. is the market leader in the United States pizza delivery and second largest pizza company in the world based on number of units. The company offers a wide variety of pizza products as well as pasta, bread sticks, boneless chicken and wings, desserts and soft drinks. As of the beginning of this year, 2012, Domino’s had 394 company-owned stores and 4,513 franchised Domino’s units in the U.S. and 4,835 franchised stores internationally. Domino’s strategy is to use its superior supply-chain to provide its franchises with lost cost inputs so the franchises may focus on sales and service. Through the online world, Domino’s customers began to share their dissatisfaction with Domino’s products, such as pizza lacked taste and quality and poor quality delivery pizzas. Over the past 3-5 years Domino’s has made an effort to improve the palatability of their core products, and in 2009 introduced a new and redesigned crust recipe, fresh ingredients, a new sauce, and real shredded cheese. This effort, along the successive marketing campaigns has increased brand loyalty and customer preferences which has had a profound effect on increases in revenue and number of franchise openings. I believe that this strategy that is currently implemented is working, but for Domino’s to remain an industry leader and prolong the current trend of success, Domino’s needs to focus on the demographic and technological changes in the market. Focusing on the changes and reevaluating their current strategy will help Domino’s remain a leader within the industry. Situational Analysis
General Environment Analysis:
| -Pizza remains a very popular product appealing to a wide demographic of Americans that consider restaurants an essential part of their lifestyle. -According to Rasmussen Reports 40% of American eat pizza at least once per month w/adults ranging 30-49 yrs. of age; 21% of young adults (18-24) purchase pizza more than three times a week. Pizza is an integral part of American culture and shows no sign of exciting the market.
| Domino’s is not immune to market trends; its revenues are directly affected by how the economy is doing. As the labor force progresses closer to full employment, consumer spending will increase and real GDP will be boosted. As a result, Domino’s Pizza will benefit from the increase of consumer spending as more consumers will likely spend more money at quick-service restaurants than dinging at home. To retain consumer’s quick-service restaurants should not worry as much about pricing but about expanding their menus.
| The political and legal conditions that could affect the business of Domino’s Pizza are the policies of the local and national government towards business. If the government is more open to the establishment of numerous restaurants, then more restaurants will be established. Laws in favor of employees will be a factor for Domino’s. In each state/country they operate in they will have to provide proper employee training, as well as the minimum wage that are in compliance with state and federal regulations. Wages increasing can have a negative impact on revenues.
| Households are more likely to have a double income these days, resulting in families going out to eat more often.(No time to cook at home) Media is growing at a fast pace means that Domino’s need to be part of this trend and keep up with the technological changes when comes to their online and app. options. Providing healthier options can be a potential competitive advantage for Domino’s. More people are concerned with their health and are becoming more aware of nutritional facts. Organic and gluten free products are gaining popularity.
| The fast changes in technology nowadays have far-reaching effects. The factors that have a huge...
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