Business Model of Domino’s Pizza Australia

This essay provides an overview of the business model of Domino’s Pizza Australia and the impact of technology on it. It also explains the opportunities and threats caused by the use of smart connected products. The business model canvas used for the company addresses the value proposition and resources and capabilities. The paper also explains the importance of innovation and technology in sustaining a competitive edge in the target market.

Running Head: Innovation and Enterprise
Innovation and Enterprise

Innovation and Enterprise 1
Business Model of Domino’s Pizza Australia
A business model is a plan for the company that helps them to generate revenues and make
profits as well. The business model canvas explains that what type of product and services the
business should manufacture, in what way and what expenses it should incur. Just like business
model, innovation and technology are two major aspects that help a business to sustain the
competitive edge in the target market (Joyce, & Paquin, 2016).
Further, the purpose of this essay is to provide a brief overview about the business model and
disruption in technology. The paper also explains different opportunities and threats caused by
the advance use of smart connected products in the company Domino’s Pizza Australia. The
business model canvas used explained for the company address the two main aspects that are
value proposition and resources and capabilities.
In the viewpoint of Teece (2010), a business model mirrors the hypothesis of what the customers
want, how they want it and what amount they will pay for the products and services offered; and
lastly, how an organization can organize their activities to best meet the needs of customer and
get paid well as well. But it was stated clear that no single definition satisfied the actual meaning
of business model (Coes, 2014). Further, a business model can be separated into four aspects that
are strategic choice, capturing value, value network, and creating value. Further that a business
model is a depiction of the organization’s underlying core reasons and planned options that are
for the purpose of making and seizing value within a value network (de Oca, Snoeck, Reijers, &
Rodríguez-Morffi, 2015).
Addition to this statement, Baden-Fuller & Morgan (2010), stated that with the help of this
model an organization profitably distributes the value in different parts of the company.
Supporting to it, Osterwalder (2005), explained in his extensive research that three are total nine
building blocks that come together and create a business model for an organization. He explained
a broader view of business model by stating that this model is a theoretical tool that includes a
set of rudiments and their different relations. According to Osterwalder et al., (2005), the
business model is a tool that contains a set of concepts, objects and their relation with the aim to
show the business logic of an organization. These elements allow the logic to activities initiated
in the business (Martins, Rindova, & Greenbaum, 2015). Further, this model is description of the

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values offered to different segments of customers, strategy of the firm, web of partners used to
initiate activities in the market, marketing activities, relationship capital and process of
delivering the value to generate optimum profits for the company. Adding to this statement
Michel and Coles (2004) stated a set of questions that properly replies what is a business model.
Relating it to the disruption of technology, Zott et. al., (2011) says that business model shapes
the potential of the company to capture opportunity with the use of disruption present in
technology. Disruptive technology is now converted into disruptive innovation. Disruptive
innovation refers to the innovation that transforms the complex, affluent products and services
into stuffs that are so simple and reasonable to people. Robles (2015) stated that the
characteristics of disruptive business is that they start with low gross profit and small target
markets (Bocken, Short, Rana, & Evans, 2014). Also, they make simple products and services
may not look attractive but provide output from the use. Further, innovation challenged the top-
down view of innovation which was introduced by the Michael Porter in his theory Competitive
Advantage (Osterwalder, & Pigneur, 2010). Further, it should be noted that digital disruption is a
technology , tool, process, behavior or a business model that changes the clients according to
their behavior and expectations with the values. This also helps them in serving in a better way,
more cheaply and faster as well (Carayannis, Sindakis, & Walter, 2015).
Domino’s Australia was incorporated in the year 2002 as a pizza restaurant chain company. The
company operates its business in business at almost 13,800 locations in over 85 markets all
around the world. The basic menu of the company includes pizza products of different types
(Domino’s , 2018). Relating the business model with the use of technology in their business, it
should be noted that, disruptive innovation creates identification of the company in the target
market. Under this process, smart connected tools are used that helps the business to grab
opportunities and earn well (Christensen, Raynor, & McDonald, 2015). These tools are
embedded in the processor or software and allow the interaction of data between the respected
departments. With the help of this tool, the company efficiently records the inventory and serves
its information to the manufacturing department. If there is decrease in the economic order
quantity, then the warehouse informs it to the manufacturers with the use of such tools. Thus, it
gives an opportunity to the company to never go out of stock. Further, this process also gives an
opportunity to the Domino’s Pizza, Australia to succeed in their waste management activities

Innovation and Enterprise 3
(Osiyevskyy, & Dewald, 2015). As, with the help of such products the organization can record
the waste disposed and forward its information to the respected departments, also they can form
measures and collectively aim to approach it as well. Therefore, this tool helps in connecting the
people and departments of the company that are beyond their geographical reach. Further, the
biggest threat to Domino’s Australia with use of smart connected tools is that defect in this tool
can stop many activities of the organization in between. In addition, if the management to
different departments of Domino’s Australia circulates wrong information then they can face
losses as well. The biggest threat is the mugging of information stored in the cloud with the use
of such tools (Sok, Snell, Lee, & Sok, 2017).
Key Partners
 Domestic Firms
 Franchises
 Manufacturers
 International
Partners
 Suppliers
Key Activities
 Preparing and
serving tasty pizza
 Marketing,
promotional and
advertisement
 Franchise options
Value Proposition
 Tasty and rich
food with
finest quality
 Fresh and
healthy
materials
 Soothing
ambience
 Focus on
customers’
taste and
preferences
 Free home
delivery and
fine dining
Customer
Relationships
 Direct
contact
with
customers
 Serving
original
recipes
 Online
services
 Services
through
mobile
applicatio
ns
 Customer-
friendly and
self-services at
outlets
 Direct
Customer
Segments
 Australian
population
 Youngsters
 Women
 Families
 All age group
 All Income
level

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selling
Key Resources
 Hotel staff: chef,
and waiters,
cleaning staff,
sales executives,
administration
staff
 Brand
 kitchens, utensils
and Outlet
buildings
Channels
 Online site of
dominos.com
 Referrals
 Advertisements
 E-mail
marketing
 Social media
sites
Cost Structure
 Application designers
 Selling expenses
 Logistics and supply chain
 Taxes
 Employee wages
 Maintenance cost
 Manufacturing and Production costs
 Store payment
Minimum Viable
product
 Food lorry, cars
and two-
wheelers
 Large-scale
catering venture
Revenue Streams
 Online sales
 Physical sales
 Advertisements
 Franchises
 Cash on delivery
 Credit/debit cards
Value proposition aspect in the business model canvas explains the competence of the company
to tackle challenges and create compelling product and services that the customers wish to buy.
After designing the business model, the management of Domino’s Australia need to understand
the requirements of customers and value proposition that they are willing to buy. Further talking
about the value proposition of Domino’s, it should be noted that the aim of the company is to
tasty and rich quality food to the customers present in the market (Marler & Fisher, 2016).
Looking at the market segment of Australia, it was evaluated that the customers will buy the
products of the company only when they are eye teasing and mouth-watering. So, the value

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proposition which they include in their model aligns to the expectation of the customers. Further,
the value increases when the company provides a soothing experience to the customer at the
outlet. This will help in making repeated sales as well. Free home delivery and good taste acts as
benefit for the company to attract customer attention (Maritan, & Lee, 2017).
Next is the resource and capabilities aspect of the business model canvas, it should be noted that
the company has qualified resources and capabilities present with them due to which they are
running properly in diverse parts of the world. The work force of the company is the most
important resource of the company that helps them in growing. The partners also help in
increasing the sales by offering different values to different customers present in the market.
They also promote the products in the different markets as well (Covin, Garrett, Kuratko, &
Shepherd, 2015). Good media and promotional strategy act as a capability of the company
Domino’s Australia to earn well in the target market. These activities attract the customers and
help them in knowing about the specifications of the product that influence the customers to
initiate sales for the company. Resulting to which revenue is subsequently increased (Zott, Amit,
& Massa, 2011).
Thus, in the limelight of above-mentioned events, it should be noted that the business model is
an important tool that helps any business to grow in the external market. It helps the business in
identifying its resources and capabilities with the help of which they can excel in the target
market. Further, the business model canvas also helps in attaining information about the value
proposition that should be introduced in the product to provide better level of satisfaction to the
customers. Lastly, from the above findings it was analysed that this model will help the company
to sustain their growth in future. It will also help them to analyse the challenges and risks in
advance and learn techniques to properly face them.

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References
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Coes, D.H., 2014. Critically assessing the strengths and limitations of the Business Model
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Domino’s , (2018). Inside Domino’s. Retrieved on 19 April 2018 from
https://www.dominos.com.au/inside-dominos