Business Model Analysis-Domino’s Pizza Australia

Running head: BUSINESS MODEL ANALYSIS-DOMINO’S PIZZA AUSTRALIA 1
Business Model Analysis-Domino’s Pizza Australia
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BUSINESS MODEL ANALYSIS-DOMINO’S PIZZA AUSTRALIA 2
Business Model Analysis-Domino’s Pizza Australia
A business model is something that an organization builds overtime. Various researchers
have looked at the concept of business models over the years. According to Caravanis, Sindakis
and Walter (2015), the idea of business models or business model innovation is founded in
organizational practice, strategy management and industrial economics. They further explain that
business models are not a strategy but they form a significant part of any strategy. They are also
the key to understanding and communicating strategy within a company and across its
stakeholders and business environment. DaSilva & Trkman (2014), further attempt to analyse the
term business model especially when it comes to organizational long-range planning. The term
business model has suffered because of evolving into an idea that is unclear and many companies
in the 1990s failed by following what is thought to be innovative business models. The two
researchers therefore redefine business model by looking at its historical development, resource-
based view theory, consistent statements about business models and implications for further
research. Business model is a term that was first mentioned in an academic article written by
Bellman in 1957 which investigates how business games are constructed for training purposes.
The term business model can also be confused with revenue model (George & Bock, 2011)
which is an important part of any business model. A revenue model does not define how an
organization creates value but how the company appropriates revenue through sales of goods and
services. A revenue model does not define the company’s entire business model but is a very
important part of the model. Several scholars have however seen business models as an aspect
that should be used in explaining different phenomena (Zott et al.,2011). Further Porter notes
that the business model must be applied together with the company strategy for it to work
effectively. Taking the business model and applying it in isolation from the company’s strategy
may hinder the company from achieving success. Without any clear strategy, the company may
have its competitive advantage interfered with.
The theory of disruptive innovation was introduced in 1995. According to Christensen,
Raynor & McDonald (2015), disruptive innovations are those that cause a shift in the current
market and mainly emanate from low-end markets or new markets. They further explain that
disruptive innovations only reach main consumers if their quality standards are met. Dong &
Dijk (2015), further explain that the same business models have been applied for years by

BUSINESS MODEL ANALYSIS-DOMINO’S PIZZA AUSTRALIA 3
different companies hence to become unique, a company should cause a market disruption by
being innovative.
This paper will analyse the current business model that has been adopted by Domino’s
Pizza Australia. Domino’s is the largest pizza in Australia, in terms of network, the number of
outlets it has and the sales that have been generated over the past years. The company is the
largest franchisee for the Domino’s Pizza brand in the world. The company also has holds
exclusive master franchise rights for Domino’s in Australia, New Zealand, Belgium, France,
Netherlands, Japan and Germany (Domino’s Australia,2018). Domino’s Australia has
implemented a unique business model that has seen it been the most successful pizza chain in
Australia.
Opportunities and Threats
Domino’s has an opportunity of getting into the market of health-conscious consumers.
There is a huge shift in the market towards healthy eating hence Domino’s should take advantage
of this. This can be done by introducing a menu that is health-conscious, hence resulting in future
revenue increase for the company. Customers like experimenting with flavors and the company
can come up with further pizza flavors that will attract even more consumers. With more flavors
and having flavors which are suitable for vegetarians, Domino’s has a chance of expanding and
getting more customers
Domino’s has an opportunity to introduce exclusive restaurants in prime high-end areas
hence helping the brand to increase its brand recognition (Jackson &Scott, 2015). This will
enable the company attract consumers who like eating in restaurants that are considered as plush.
Further, it will enable the company to create a new market niche of high-end customers.
Domino’s further has an opportunity to acquire new technology that will take its business
to the next level. The industry that the company operates in highly competitive and technology
can make the difference between success and failures. Currently, Domino’s has been doing
research on a system that will enable it to produce and deliver pizza in exactly ten minutes
(Dominos Australia, 2018). The aim is to give very fast service to customers hence the