Competitive Strategy Analysis

The report is based on the analysis of the external macro and micro environment related aspects that are able to influence Domino’s Pizza Australia. The macro environment based factors that have been considered mainly include, the social aspects and the economic aspects as well. Porter’s five forces tool is used in order to study the industry in which Domino’s Pizza Australia is operating currently. Recommendations have been provided based on the future strategic direction that can be implemented by Domino’s Pizza Australia in order to develop the operations. The growth strategy and generic strategy of the firm have also been analysed in the report in details.

Running head: COMPETITIVE STRATEGY ANALYSIS
COMPETITIVE STRATEGY ANALYSIS
Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the analysis of the external macro and micro environment related
aspects that are able to influence Domino’s Pizza Australia. The macro environment based
factors that have been considered mainly include, the social aspects and the economic aspects
as well. Porter’s five forces tool is used in order to study the industry in which Domino’s
Pizza Australia is operating currently. Recommendations have been provided based on the
future strategic direction that can be implemented by Domino’s Pizza Australia in order to
develop the operations. The growth strategy and generic strategy of the firm have also been
analysed in the report in details.

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Table of Contents
Section One – Introduction............................................................................................3
Section Two – Analysis of the internal environment.....................................................3
a. Discussion of the resources of Domino’s Pizza Australia.....................................3
b. Discussion based on two journals..........................................................................4
Section Three – Analysis of the external environments.................................................5
3.1 Analysis of the macro-environment.....................................................................5
a. Analysis of two macro-environmental trends....................................................5
b. Discussion of macro environment factors based on two journals......................6
3.2 Analysis of the industry environment..................................................................7
a. Analysis of industry environment......................................................................7
b. Analysis based on the Porter’s five forces model..............................................8
c. Discussion based of micro-environment based on two journals........................8
Section Four – Recommended strategic direction.................................................9
References....................................................................................................................12

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Section One – Introduction
The report will be built on the study of interior and exterior environment of an
organization. The major objectives of the report are built on the study of the ways by which
the interior and external environment of the company is able to affect its processes. The firm
that has considered is Domino’s Pizza Australia.
Domino’s Pizza Enterprises Limited or DPE is biggest pizza based chain that operates
in Australia. The organization has gained the topmost position with respect to the network
sales and the network of stores that have been developed in different parts of the world. The
franchisee that has been established by the brand of Domino’s is also the largest in the world
in comparison to the other fast food chains (Dominos.com.au 2019).
Section Two – Analysis of the internal environment
a. Discussion of the resources of Domino’s Pizza Australia
Resources of Domino’s Pizza – The physical resources or stores of Dominos are
considered to be the most significant portion of operations that is developed by the company
in the market. Human resources or employees are also extremely significant for the methods
by which Domino’s Pizza has maintained the revenues and capabilities in the fast food based
market (Barros, Hernangómez and Martin-Cruz 2016). The brand value gained by Domino’s
and the partnerships which are developed in different parts of Australia are considered as
highly significant for the growth of the firm in the fast food industry that is extremely
competitive in nature (Daspit et al. 2017).
Competencies of Domino’s Pizza – The core capabilities that have been gained by
Domino’s Pizza Australia are built on the strengths that is gained by the firm in order to
dominate the pizza industry. The firm has also been able to develop a leader in the home

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delivery and take away based services that are offered to consumers in various countries of
the world (Demir, Wennberg and McKelvie 2017).
Ways by which the resources and competencies form strategic capabilities – The
resources of Domino’s including human capitals, intellectual resources and physical capitals
have been able to play a main part in the methods by which strategic capabilities of the firm
are developed. The strategies of Domino’s Pizza Australia are mainly built on the high
quality products that are provided to the consumers at low prices. The quality of products and
high speed delivery services have played a main part in implementation of active strategies
(Durand, Grant and Madsen 2017).
Key competitive advantage of Domino’s Pizza Australia – The key competitive
benefit that has been developed by Domino’s Pizza Australia is based on the ways by which
unique and low cost based food items are provided to the consumers. The firm has always
aimed at fulfilling the basic needs of the customers with the support of freshly prepared and
high quality products that are provided to them (Dyer et al. 2015). The pricing policies that is
implemented by the organization is built on low and competitive prices that are offered to the
customers. The firm has made key levels of investments on fulfilling the needs of the
consumers with the support of proper research and development related activities (Engert,
Rauter and Baumgartner 2016).
b. Discussion based on two journals
As discussed by Kabue and Kilika (2016), the resource based view of a company can
play a major part in the methods by which a sustainable competitive advantage can be
developed. The model is able to provide a view base on the methods by which a company is
able to combine its resources and competencies are combined in order to grow the effective
approaches. The proper study of the competencies and resources that have been increased by

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the organization is able to play a key part in the methods by which their operations can be
analysed (Kabue and Kilika 2016). However, in case of firms that belong to the same
industry the analysis with the support of implementation of resource based view model is not
considered to be suitable. The major reason behind is that the resources are shared between
the organizations that are a part of a particular market. The organizations are thereby able to
develop their strategies with the support of proper study of the analysis of the resources that
have been increased and the levels of core competencies that have been developed as well
(Kabue and Kilika 2016).
According to Bello et al. (2016), the application of technologies in organizational
processes is an important aspect that is able to affect the methods by which resources and
competences of the organizations can be developed. The variations that have taken place in
the business based environment have been able to play a key part in growth of resources and
capabilities of the firm. The professional service providing firms have been struggling in a
huge manner in order to gain new customers (Bello et al. 2016). The growth that has taken
place in the economy has been able to play a key part in the methods by which a firm is able
to grow a place in the market. The implementation of technologies in the organizations is
considered an important part of the dilemma that had been faced based on financial
capabilities that are developed by the organization (Bello et al. 2016).
Section Three – Analysis of the external environments
3.1 Analysis of the macro-environment
a. Analysis of two macro-environmental trends
The macro environmental aspects are able to influence the methods by which
organizations can develop their strategies for their future operations. The two key aspects that

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have an influence on the organizational processes of Domino’s Australia include, the
economic factors and social factors (Ethiraj, Gambardella and Helfat 2018).
Economic factors – The economic situation of Australia plays a major part in the
methods by which the organization has been able to uphold its profitability and revenues. The
performance of Domino’s Australia is influenced in a huge way by the economic
performance of Australia. The investments based plans that have been made by Domino’s
Australia in the country is influenced in a enormous way by the external economic situation
(Frynas and Mellahi 2015). The high availability of core infrastructure in Australia has been
able to provide support to Domino’s Pizza in order to open its stores in diverse portions of the
country. The physical presence of Domino’s Pizza has been increased with the help of
effective development of stores. The abilities that have been expanded by the employees in
Domino’s Pizza are important aspects that have influenced the processes and the methods by
which the firm has been able to gain a huge share in the industry (Hill, Jones and Schilling
2014).
Social factors – The attitude of consumers towards the migration based activities is
negative and this has a major impact on the international leadership that is developed by the
company. The consumers in the country have provided high preferences to the methods by
which the products provided by Dominos are able to cater to the requirements and demands.
The enhancement of the customer experiences is mainly built on the methods by which a
traditional value proposition can be established in an active way (Hubbard, Rice and Galvin
2014). The access that is gained by the employees to different essential services is a
significant aspect that has an influence on the processes of Domino’s Pizza in Australia. The
power structure that had been developed in the Australian society is considered to be a
significant aspect that is able to influence the choice and preferences built on the products
(Hill, Jones and Schilling 2014).

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b. Discussion of macro environment factors based on two journals
As discussed by Fartash et al. (2018), the business environment of a company is
affected in a enormous way by the relationships that have been developed between
exploitation and technology acquisition related actions that are completed. The performance
levels of the organizations and levels of organizational innovation are able to influence the
methods by which the dynamic environment of a country can be have an impact on
organizational operations. The implementation of change is a significant aspect that is able to
influence the dynamic business environment that is developed in the country (Fartash et al.
2018).
According to Vargas-Hernández and Mercado (2019), the social capital or aspects of
an organization is able to play a key part in the methods by which a firm is able to function in
a competitive environment. The levels of uncertainty that exist in the organization is related
to the social aspects that have an impact on the operations and the choice of customers as
well. The economic crisis that has occurred on a global basis has also become highly intense
in different countries of the world (Vargas-Hernández and Mercado 2019). The trade based
and financial imbalances that have occurred in the various industries have an influence on the
organizational operations. The social capital or aspect is able to play a crucial part in the
appropriate growth of revenues and high levels of profitability that have been gained in the
industry in a sustainable way (Vargas-Hernández and Mercado 2019).
3.2 Analysis of the industry environment
a. Analysis of industry environment
Threats of the new entrants – The large organizations like Domino’s Pizza have a
major cost based advantage in Australia due to the difficult economies of scale in the country.
The production based activities for the new entrants have been highly costly for the new

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organizations. The differentiation stages of the products of Domino’s are high in terms of
quality and the new entrants will not be able to develop the levels of quality and the networks
based on distribution (Karadag 2015).
Bargaining power of the suppliers – The number of providers in the fast food
industry of Australia are high and Domino’s is able to develop a highly efficient supply chain
as well. The power of suppliers in the market is low and the organizations like Domino’s can
easily switch the suppliers as well. The profits that are established by the firm are considered
to be significant factors that are affected by the suppliers (Kasemsap 2014).
Bargaining power of the buyers – The high levels of differentiation that are
developed for the products of Domino’s are considered to be significant aspects that have an
influence on the lack of power of the buyers. The income levels of the buyers are able to
influence the methods by which the choice of consumers is developed (Dobbs 2014).
Threats based on substitute products – The substitutes of the products that are
developed by Domino’s are not available in the fast food industry. The lack of the availability
of proper substitutes is considered to be a significant aspect that is able to affect the
operations of Domino’s Pizza. The quality of products that are offered by Domino’s could
not be countered by the new organizations (Meyer, Neck and Meeks 2017).
Rivalry among the existing firms – The fast food based industry is competitive in
nature, however, the competitors cannot provide effective products in order to compete with
Domino’s Pizza. Domino’s has gained a vast share in the industry with the help of different
resources and products of the organization (Michael, Storey and Thomas 2017).

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b. Analysis based on the Porter’s five forces model
The analysis of the fast food market has been able to depict that the firm has been able
to key position with the help of its resources and products. The competitive environment is
quite strong, however, the levels of competition that are offered by the other organizations is
low due to the brand value that has been gained by Domino’s Pizza in the country (Meyer,
Neck and Meeks 2017).
c. Discussion based of micro-environment based on two journals
As discussed by Mialon et al. (2016), the variations that have taken place in the
exterior political environment have been able to affect the fast food market of Australia and
the operations of Domino’s Pizza Australia as well. The health based policies that are
developed in the country have a main influence on the food items that are offered to the
consumers with the help of their stores in different parts of Australia.
According to Sainsbury et al. (2018), the regulations based on health that have been
developed by the Australian government is able to play a key part in the methods by which
fast food firms in the country can maintain their operations. The support that is offered by the
intervention of government is a significant aspect that has an influence on the processes of
firms in fast food based industry. The organizations in the fast food industry are thereby able
to maintain their revenues with the support of policies that are established with respect to the
health based regulations (Sainsbury et al. 2018).
Section Four – Recommended strategic direction
Growth strategy of Domino’s Pizza Australia - Domino’s Pizza Australia has been
able to grow a leadership place in the fast food market with respect to the levels of revenues
and quality of products that are provided as well. The Ansoff matrix can be used in order to
analyse the growth approaches that have been applied by Domino’s Pizza Australia. The

10COMPETITIVE STRATEGY ANALYSIS
possibilities of the growth of Domino’s is built on the methods by which the company has
been able to develop a strategic vision that has been formed for the future processes
(Morschett, Schramm-Klein and Zentes 2015). The growth strategy based on market
development has been implemented by Domino’s Pizza in Australia for gaining a major place
in the fast food market. The proper expansion of the operations of Domino’s Pizza is based
on the ways by which the organization has developed franchises in diverse parts of Australia.
The strict implementation of production procedures is also based on the methods by which
the firm is able to develop a large customer base (Sakas, Vlachos and Nasiopoulos 2014).
The strict implementation of production based procedure is considered to be a significant
aspect that is able to affect the operations of Domino’s in Australia.
Generic strategy of Domino’s Pizza Australia - The generic approach that has been
developed by Domino’s Pizza in Australia is a mix of broad differentiation and cost
leadership strategy. The high quality based products are offered to the customers at low
prices. The competitive or penetration pricing policies have however not been developed by
the organization for the purpose of providing the products to consumers. The generic strategy
of Domino’s has been able to play a key part in the methods by which the organization has
established its place in the fast food based market (Simon, Fischbach and Schoder 2014).
The strategic direction that has been formed by Domino’s is thereby built on the
proper growth of market rather that the growth of new and improved products. The vision of
the company is mainly built on the methods by which Domino’s is able to become the
delivery based organization in Australia. The priorities of the company are mainly built on
the proper recruitment and retaining the best levels of employees (Steinbach et al. 2017). The
consistent delivery of high quality food items is considered to be a significant aspect that is
able to influence the customer base. Innovation has become a key portion of the management
procedure and the customers of the organization as well. Domino’s Pizza also tries to develop

11COMPETITIVE STRATEGY ANALYSIS
high standards in the fast food industry of Australia within short periods of time (Trigeorgis
and Reuer 2017).
The major changes that can be made in the planned way of Domino’s Pizza Australia
is built on the methods by which the firm can upsurge the competitive pricing based activities
in an effective manner. Competitive pricing will be able to play a main part in the methods by
which Domino’s Pizza can face the stages of competition that are developed in the industry.
The organization is already offering high quality products at low prices, however competitive
pricing and new product development are the most significant aspects that are able to
influence operations of Domino’s Pizza Australia (Wheelen et al. 2017).
The study of external environment related aspects like the economic aspects and
social aspects have been able to affect the procedures and policies that are established by
Domino’s Pizza Australia in the fast food market. The analysis of micro environment is able
to play a key part in the growth of the future operations based strategies that can be
implemented by Domino’s (Simon, Fischbach and Schoder 2014). Although the levels of
competition in the market are high the firm has been able to maintain its place with the
support of high quality products that are provided to the consumers. The changes and
technological disruptions that take place in the fast food industry have a key influence on the
methods by which Domino’s Pizza has aimed at improving the operations (Morschett,
Schramm-Klein and Zentes 2015). Domino’s Pizza Australia thereby has to make variations
in the growth based strategies in order to develop the customer base and gain a greater share
in the influnce as well. The most significant part of the changes in strategic direction is
mainly related to the pricing policy that has been implemented by the organization for
continuing the successful and profitable processes. Although the entry of new organizations
in the fast food market is not easy, the competition levels are increasing on a continuous basis
and are affecting the revenues of Domino’s Pizza Australia (Meyer, Neck and Meeks 2017).

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