Value Chain

Topics: Franchising, Business model, Supply chain Pages: 4 (1258 words) Published: December 14, 2012
1.0 Introduction
Domino’s Pizza operates a network of more than 9,000 owned and franchised stores throughout the U.S. and more than 65 international markets. Domino’s is the world’s largest pizza delivery company committed to leading the industry in product, quality and operational excellence. Domino’s Pizza is regarded by the industry as being the pioneer of pizza delivery and the undisputed “The Pizza Delivery Experts”.As at April 2011, there are 57 Domino’s Pizza stores; 42 in Klang Valley, 3 in JB, 4 in Penang, 3 in Ipoh, 2 in Melaka and 3 in Negeri Sembilan. 2.0 current business strategy

2.1 Revenue
Revenues from domestic supply chain operations increased $52.4 million or 6.0% in 2011. This increase was due primarily to an increase in overall commodity prices, including cheese and meats. Cheese prices positively impacted revenues by approximately $25.0 million in 2011. International. International revenues primarily consist of royalties from our international franchise stores and international supply chain sales. Revenues from international operations increased $24.5 million or 13.9% in 2011. This increase was due primarily to higher international royalty and other revenues and higher international supply chain revenues. This increase was positively impacted by approximately $6.6 million related to changes in foreign currency exchange rates Our competitive strengths

We believe that our competitive strengths include the following: • Strong and proven growth and earnings model. Over our 51-year history, we have developed a focused growth and earnings model. This model is anchored by strong store-level economics, which provide an entrepreneurial incentive for our franchisees and generate demand for new stores. Our franchise system, in turn, has produced strong and consistent earnings for us through royalty fees and through supply chain revenues, with minimal associated capital expenditures by us. Strong store-level economics. We have developed a...
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