...3/23/13 Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Username Passw Submit Forgot your password? | Not a member? Please register tutor2u Economics Business Stds Politics Sociology IB Diploma Law Religious Stds Blogs Management History Geography Physics Give It a Go & Other AQA BUSS2 & BUSS4 | AS & A2 Economics | GCSE Business Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Friday, November 26, 2010 by Geoff Riley Print Email Tweet This! Save to Favorites Despite or perhaps because of difficult economic times, the pizza delivery company Dominos UK & Ireland has enjoyed rapid growth over the last couple of years. The company, which owns the Master Franchise to the Domino’s brand in the UK and Ireland, now operates through over 130 franchisees with an average of 4.5 stores each. And their long-term strategy contains the target of rolling out at least one new Dominos store per week in each of the next ten years, growing the business into a billion pound brand in the UK – almost double the current size. Shareholders in Dominos are happy! The company floated on the Alternative Investment Market (AIM) in 1999 and moved into the FTSE-250 mid-cap index in 2007. It now trades at £5.20 per share contrasted with an initial floatation price of 17 pence. Measured by turnover, Dominos is now bigger than the combined income of its largest four rivals including Perfect Pizza and Pizza Hut. The sheer scale of the...
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...Domino’s Pizza is a corporation that deals with the delivery of pizza in different countries and has its headquarters at Michigan, United States. The corporation was started, in 1960. Currently, it is among the largest pizza chains in United States of America. It has over 600 stores in different growing cities in Wales, Ireland, and England among others. Domino’s Pizza Corporation is a pizza delivery company with franchise stores in so many countries. Its reputation for being in the industry for long has earned it an advantage over other upcoming pizza stores. The stores are able to monitor and maintain quality and consistency of its products. From the many years of experience and staff dedication to serving customer needs, the company has earned a good public reputation. The store recognizes that different customers have different needs; there are those who order the Domino pizza to satisfy the need for food caused by hunger, and there are others who want to enjoy the pizza and the comfort; thus, the Pizza hut. Internally the employees support each other, although everyone has duties and specific roles to play. However, teamwork is always encouraged. It would be impossible to serve the target market effectively without dedication of the internal personnel involved. The franchises have to meet set standards to do business with domino pizzas. This aids in building the public reputation of the company. Dominos Company operate in an environment where there is free competition....
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...Domino’s Pizza Domino’s pizza is the second-largest pizza chain in the United States, founded in 1960 by Tom and Jones Monaghan. Domino’s open it first international locations in 1983 in Canada and Australia which lead Domino’s pizza become an international pizza delivery corporation. It has more than 9,300 corporate and franchised stores in 65 international markets and all United State. Problem 1. Domino should maintain low-cost or focusing more health conscious approach which leads to higher price. 2. How can the company maintain efficiency in this high competitive environment which most of the firms provide almost the same product as now Domino is number two in the market. Analysis Five Forces Model Bargaining power of suppliers is low due to undifferentiated product from suppliers, low switching cost and easy to switch, and also lots of substitute of supply. Bargaining power of customers is low as the customers do not buy large volumes, no concentration of buyers. Threat of new entrances is high due to high capital requirement to set up the chain, product differentiation expense required and cost disadvantage from similarity in product offering. Threat of substitutes is high due to lots of substitute and low switching cost. Competitive rivalry is high due to there are many company offer the same product and compete in the saturate market. Domino’s Pizza internal and external analysis. Strengths | Weakness | - Currently operate in more than 60 countries.-...
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...strategies (Pizza Hut, Pappa John's, and Little Ceasars). Based on your knowledge of the industry, what conclusions can you draw? * Outlining a rough competitor analysis, what does the level of interdependence between the rivals reveal about competitive behavior that can be expected from these competitors? * Evaluate the pros and cons of Domino's strategic approach. Do you agree with the company's decision to focus primarily on delivery and cost leadership? * Review Domino's cooperative strategy. Are there advantages that could be gained by entering a cooperative strategy with organic food suplliers? * What are some of the near-term results you anticipate in the industry? Long-term results? Little Caesars clearly provides a cheaper option which is often about half the cost. A disadvantage of Little Caesars includes that some locations do not deliver and are carry-out only. In contrast, all Dominos will deliver in the local area. Pizza Hut competes by having both restaurants and delivery locations. Papa John’s competes by serving an alternative style of pizza and focuses on areas the other big companies do not delivery to. The pizza industry is lucrative and growing with so many competitors. This makes sense considering how people will turn to lower cost foods such as pizza in the economic downturn. The high level of interdependence between the pizza companies shows they are less likely to take competitive action against each other. I rarely see pizza promotions...
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...to competitive advantage are differentiation, cost leadership, and response. All of these make a company competitive. Each company is different and chooses how they stay competitive. The three approaches come across all differently but each is an excellent outlet to stay competitive. Differentiation “Boston Market Corporation, headquartered in Golden, Colorado, has been giving time back to busy people since 1985”(“Boston Market”, 2013, para.1). Boston Market uses the differentiation approach when competing with their large market of competitors. The fast food market is large and it takes a strong company to be successful. Boston market thrives because they want you get fast service but quality food. “For the price of a sub sandwich and chips at other restaurants, Boston Market puts quality, flavor and wholesomeness on the center of the plate” (“Boston Market”,2013, Para.3). The atmosphere Boston Market creates is made to feel like someone is eating a good home cooked meal. Boston Market is a big go-to for the thanksgiving meals. Thanksgiving is the most sought after home cooked meal and people flock to Boston Market for it. “From a full, catered dinner where orders must be placed in advance to Heat & Serve and A La Carte options, the company that does Thanksgiving all-year-long has easy options for guests who’d rather not cook or whose cooking doesn’t go as planned”(Denmary,2012, para.4). This type of strategic approach works for Boston Market and keeps them competitive. ...
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...Domino’s Pizza Analysis of Marketing Strategy Prepared By: Muhammet GÜVEN 1002090089 Hanım Eylül ŞAHİN 1002090110 Esra ASLAN 1002100128 Kübra AYDIN 1002100028 Istanbul University May, 2014 ------------------------------------------------- An in depth look into the theory and outcome of Domino’s bold mea culpa advertising strategy and its potentially radical effects on transparency in the food and service industry. Table of Contents EXECUTIVE SUMMARY 2 History 2 Industry 2 SWOT Analysis 2 Competition 3 Recommendations 3 HISTORY of DOMINO’S 3 Mission and Vision 5 DOMINO’S’ LOGO 6 PRODUCTS OFFERED IN DOMINO’S PIZZA 7 Menu 7 ENVIROMENTAL ANALYSIS OF DOMINO’S PIZZA 9 Remote Environment 9 Internal Environment Analysis 10 PIZZA’S MARKET SHARE 11 MARKETING STRATEGIES OF DOMINO’S PIZZA 11 SWOT Analysis 14 Strengths 14 Weakness 15 Opportunities 15 Threats 16 MARKETING MIX 16 CONCLUSION 18 APPENDIX 19 To: Doc.Dr.Zehra BOZBAY Subject: Domino’s Pizza Date: May 2014 EXECUTIVE SUMMARY History Starting in 1960, Domino’s Pizza, Inc. (Domino’s) was formed by two brothers from Michigan. The two started the business after purchasing a store named DomiNick’s. They converted the name to Domino’s five years later. In 1983, Domino’s went international. Today, Domino’s employs about 10,500 people between their 8,700 stores worldwide. The company has been traded on the NYSE as DPZ since 2004. Industry The pizza industry...
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...Domino’s Pizza Case: Geographical integration facing local specificities The U.S. Pizza Industry is not really attractive due to a lack of concentration¹ in the domestic market according to Porter’s five forces analysis. Despite this obvious lack of attractiveness, Domino’s Pizza (later referred to as «Domino’s») were able to make a 8% profit² relying on an inimitable competitive advantage: the 30-minute delivery guarantee made possible by a very specific computer system developed by the company. Facing few growth opportunities in the domestic market, the company decided to adopt a geographical integration strategy in order to increase market shares. Since market entry is riskier when there are cultural differences between the company and the new market, Domino’s adopted a master franchise model of operations that allowed the company to minimize its risks in foreign markets while earning higher returns through the royalties system. This memo addresses the question why Domino’s Pizza have been so successful in some countries and failed miserably in others whereas it was using the same franchising agreement system in every foreign country. To this end, we will highlight key success factors of geographical expansion through the franchise system: the company’s ability to transfer their resources to franchisees and to adapt to local tastes. We will then suggest Domino’s to improve their appraisal of the local environment and ensure better respect of their procedures to achieve higher...
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...Table of Contents 1. INTRODUCTION 2 2. SEGMENTATION AND TARGETING 2 2.1. GEOGRAPHIC SEGMENTATION 2 2.2. DEMOGRAPHIC SEGMENTATION 3 2.3. PSYCHOGRAPHIC SEGMENTATION 4 2.4. BEHAVIORAL SEGMENTATION 6 3. POSITIONING 7 3.1. VALUE PROPOSITION OF PHD OUTLETS 8 3.4. COMMUNICATING ON POPS AND PODS 8 4. DIFFERENTIATION 9 5. BRANDING AND BRAND EQUITY 10 5.1. BRAND AWARENESS 10 5.2. BRAND ASSOCIATION 10 5.3. BRAND LOYALTY 11 5.4. BRAND ASSET VALUATOR 12 6. MARKETING MIX 13 6.1. PRODUCT AND SERVICE 13 6.2. PRICING 16 6.3. PROMOTIONS 21 6.4. PLACE 24 6.5. PEOPLE 25 6.6. PROCESS 26 6.7. PHYSICAL EVIDENCE 26 7. CUSTOMER ACQUISITION AND RETENTION 27 7.1. CUSTOMER ACQUISITION 27 7.2. CUSTOMER RETENTION 29 8. REFERENCES 31 1. Introduction 2. Segmentation and Targeting To begin with, we segmented the market place into different categories broadly based on three consumer characteristics. The classification becomes more specific as we go deeper into the categories. 2.1. Geographic Segmentation The first step of classification is based on geography. We have broadly classified our target customers as belonging to 2 groups on the basis of population as recommend by the Sixth Central Pay Commission of India in 2008. • Tier I cities: Population more than 4 million Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai • Tier II cities: Population between 1 million to 4 million Pune, Jaipur, Chandigarh, Calicut etc. The reason behind focusing on these two segments is...
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...HISTORY Domino’s Pizza was founded in 1960 and since then has grown to become the largest pizza delivery company in the United States. It has grown from a mom-and-pop pizza store to a network of company-owned, franchise-owned stores in the United States and across the globe and was recently ranked number 1 in Forbes magazine’s “Top 20 Franchises for the Money” list (David, R 2013, p. 372). Domino’s Pizza was the brain child of the brothers Tom and James Monaghan who grew up in foster care and had dreams of success. In 1960 the brothers opened their first pizza store in Ypsilanti, Michigan named Domi-Nicks with a nine hundred dollar start up loan. In 1961 Tom acquired full and sole ownership of Domi-Nicks by trading his brother James a car, a Volkswagen Beetle to be specific, for his half of the business. He then changed the name to Domino’s Pizza Inc. During the period from 1965 to 1978 Domino’s experienced steady growth and had increased from the initial mom-and-pop store, to having 200 locations nationwide. The 1980’s saw continued expansion of Domino’s and its brand. They grew to more than 5,000 locations in the United States, Canada, United Kingdom, Japan, Australia and Columbia (David, R. 2013, p.372). In 1986 Domino’s Pizza launched its Pizza Partners Foundation which is 100% funded by team member and franchise contributions and has disbursed nearly $12 million to aid team members facing crisis situations. Company founder Tom Monaghan eventually retired in 1998...
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... Mission statement: “To be the best pizza for every occasion.” We are P.E.A.R.L.S: Passion for excellence Execute with positive energy and need Accountable for growth in customer and satisfaction Recognize the achievement for others and have fun doing it Listen and more importantly respond to the voice of the customer Marketing strategy: The marketing strategy for pizza hut is very simple: “We want to satisfy our customers by offering them the best”. They have used the word CHAMPS to describe their marketing strategy, which means cleanliness, hospitality, accuracy, maintenance, product quality and speed. They have gone further by using two F’s which stand for friendly and familiar. For pizza hut customer service means providing customers with uncompromising product quality, offering them with the highest value for money and giving them service that is warm friendly and personal. Pizza hut aspires to give its customers “customer mania”- the kind of service that ensures that every visit of the customer is a memorable one. Marketing mix: Since an international fast food chain like pizza hut demands both quality product and a high quality service and environment, its marketing mix comprises of all the seven P’s namely the product, price, promotion, place, people physical evidence and process. Product: Pizza hut offers a large variety of pizzas to its customers in many flavors. These would include cheesy...
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...Supply Chain Management Final Report On Dominos: Supply Chain Network Contents 1. Food Service Industry in India 3 2. About Dominos 4 3. Dominos India 5 3.1 Competitors 6 3.2 SWOT Analysis 8 3.3 Porter five Forces Analysis 9 4. Methodology 10 5. A Typical Domino’s Store 10 5.1 Work Force 10 5.2 Organization Structure 11 6. Domino’s Supply chain: Providing a Strategic Competitive Advantage 13 6.1 Evolution of Dominos back-end supply chain 13 6.1.1 Old Supply chain 13 6.1.2 Revamped Supply Chain Model-2000 13 6.1.3 Current Commissary Operations 15 6.1.4 Vendor Management: 16 6.1.5 Insights on Demand Estimation from retail visit: 17 6.1.6 Inventory Management @ Dominos 18 7. Domino’s as a food service organization 20 8. Service Process Flow 22 8.1 Domino’s 30-minute delivery promise 23 8.2 Service Process flow 24 8.3 Pizza Order tracking 25 8.4 Standard Layout of the make-line 26 8.4 Service Blueprint 27 8. Issues & Recommendations 29 9. References 30 1. Food Service Industry in India The Indian food industry has been witnessing strong growth over past few years. Right now India is the world's second largest producer of food next to China, and certainly has the potential of becoming the biggest producer in the years to come. The total food production in India is expected to grow by leaps and bounds in the next decade primarily because of the growing segment of young professionals and...
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...micro-environment factors do affect the Fast Food industry in Oman. Some affect in larger percentage and some very minimal that it seems so invisible. Following are the seemingly active environmental forces shaping the Fast Food Industry in Oman: Micro Environment: Employees Customers Company Competitors Suppliers Shareholders Media The Company – The Company force deals with internal environment of the company. How the top management set the mission and goals of the company. How marketing manager interacts with other department with the concern on the customer satisfaction. (ZainBooks, 2010) The well known Fast Food restaurants and cafés in Oman are operated by a franchisee. Even though franchise business gives many advantages, the main...
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...Operations Management IMPACT OF THE 4 V’S Table of Contents Introdution To 4v’s 3 Mcdonald Process 7 Inputs 7 Facilities: 8 Output 8 Quality Management 8 4v Challenges In Mc Donald 9 Dominos introduction to 4V’s 12 production process 13 Improvement 15 Conclusion 16 Referances Group member list Introduction Production process Four V’s for Processes Four characteristics of demand in particular have a significant effect on how processes need to be managed: * The volume of the products and services produced * The variety of the different products and services produced * The variation in the demand for products and services * The degree of visibility that customers have of the production of products and services. Four V’s of processes in detail. I. Volume Processes with a high volume of output will have a high degree of repeatability. That means the same thing is happening over and over again. Producing biscuits, batteries or even books can be such examples. The implications of this are that high-volume processes have more opportunities to produce products or services at low-unit cost. So, for an example, the volume and standardization of large fast-food restaurant chains such as MacDonald’s or KFC enables them to produce with greater efficiency than a small, local cafeteria or a restaurant. The implications can be even at country levels with regard to their competitiveness. Apparel industry in China, thriving on volumes...
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... 1. Market Size Pizza Hut's smaller format store is about half the size and cost of its iconic red-roofed buildings. Chain began developing smaller stores three years ago. It so far has opened more than 300 and sees potential for 2,000 more in next five to 10 years. Pizza Hut is ordering up smaller restaurants. The iconic red-roofed chain, which saw its heyday in the 1980s, says downsizing and remodelling will allow it to open more restaurants and turn a profit faster for franchisees. Pizza Hut began developing this new model, dubbed Delco Lite, about three years ago when it realized delivery--which is the way most people prefer to receive their pizza--wasn't representing as much of the business as it once did. The new model opens up another 2,000 potential sites for Pizza Hut over the next five to 10 years. Pizza Hut, which is part of Yum Brands Inc. YUM, +0.60% has about 8,400 locations, most of which are the traditional, dine-in restaurants. Delco Lite trades the red roofs and dining rooms for a more contemporary design that fits in to tighter places and focuses more on delivery and carry-out. Pizza Hut has opened more than 300, and is mostly building them, in favor of the larger, stand-alone ones. The new model is about half the size of Pizza Hut's traditional restaurants and costs about half as much for franchisees to build, opening up more potential sites in the U.S. 2. Market Trends (Past 3-5yrs) Pizza Hut, Domino’s Pizza and Papa John’s once again...
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...MIS AT A GLANCE FAMILY DOLLAR Vs PIZZA HUT AIU MNG 310 WEEK 5 IP Marara Jean Kibble May 30,2015. Abstract Here is a look at Management Information Systems and InformationTechnology of two different companies. The outline and comparing of their usages and operations to assess how IT works and its advantages and consequences. A careful review of potential security breaches and computer crimes will be access and the use of Information systems by management to aid in decision making and help manage internal operations. Competitive Advantages is defined and compared, as well. Keywords: management information systems, information technology, computer crimes, competitive advantages, Pizza Hut, Family Dollar Introduction Management Information System (MIS) is information for the managing of internal operations and activities in an organization. The main purpose of this report is, to define and compare MIS of Family Dollar and Pizza Hut. To provide accurate and timely information needed to facilitate the decision-making process and enable the organizations planning, control, and operational functions to be carried out effectively. Management Information System (MIS) is basically concerned with processing data into information and is then communicated to the various Departments in an organization for appropriate decision-making. The term MIS describs applications giving information, listing data used by management for sales, inventory...
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