PESTEL Analysis of Domino's Pizza

This article provides a PESTEL analysis of Domino's Pizza, examining the external factors that affect the company's growth and stability in the pizza industry. The analysis covers political, economic, social, technological, environmental, and legal factors that impact the company's operations. The article also discusses the impact of these factors on the company's franchise model and intellectual property rights.

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Strategic Management
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PESTEL analysis of Domino’s Pizza is the knowledge of external environment that needs
to be analysed for determining the profitable strong growth for the company for a long term
stability.
The country defines its obligations and duties for the opportunities of the organization.
Following legislations, market regulations with trade and tariff agreements can help in further
global expansion in pizza industry which can be one way that can affect the company.
Domino’s Pizza is a global brand where any minute non-conformance of obligations in an
area can lead to serious faults and fines. This might create a negative publicity with
ineffective codes and practices. Government and tax regime like VAT, corporation tax and
GST define its production ability in the country. However, Dominos has not been able to
caught crosshairs of anti-profiteering authorities and pass the goods and service tax to
consumers (Sikarwar and Bhushan 2018).
Dominos have been proven to work effectively in the time of recession worldwide. As per the
economic impact, national interest rate and fiscal policy dictate the organizational
stakeholders. Based on the Dominos survey, per capita income had risen in recession because
of more visits to the outlet (Amoafo 2015). Inflation rate increased the cost of raw material
leading to higher prices for goods as per the US and UK economy. Dominos succinctly
responded to economic conditions, infrastructure quality, labour costs with competency level
of raising capital in local market whether it was Australia, UK or any other country.
Moreover, education level even paves the role of employed personnel in a fast food joint like
Dominos Pizza.
On a social sphere, interest and attitudes of people also play a substantial role in defining diet
and health activities. For example in UK, the shift have been towards organic diet with
concern of keeping fit. On the other hand, in Africa, the nature of people have started

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rejecting the genetically modified foods. As Domino’s have been originated from America,
the association of western culture has taken a toll in the general walks of life. Morals, religion
and cultural standards even affect the wide reaching association (Amoafo 2015).
The fast paced current technology has been improving the baking and the efficiency skills of
ovens and this has been adopted by the Dominos in the growing sphere. The fast
transformation of industries have created the impact on cost structure with rate of
technological diffusion. Moreover, with the impact on product offering, better pizza category
has been introduced by Dominos that has been a tempting proposition. Infrastructure of
internet with incorporation of multitude of software have initiated an effective and
manageable business.
The ecological and environmental aspects of Dominos have kept changing since years based
on ideas of waste recycling, environment friendly agenda with delivery, take outs and
packaging. The packaging material of pizza is recyclable material that is with maintaining
environmental standards whether it is related to carbon emission or climate change. Also,
with removal of fossil fuels, focus has been drifted towards renewable energy on “go green”
products. The pizza joint is maintaining its water and air pollution schemes with offering new
products in markets with letting go the existing ones for a sustainable environment (Kline
2016).
Legally, each Dominos franchisee is responsible for its functioning as the compliance of the
stores arises from ordering from website and apps. Moreover, every store has to pass through
health and safety rights and intellectual property right for the existing place. The company, as
a whole has its patents in the recipe of pizza sold in the market. On the legal forefront,
Dominos franchise model is hard to push the limits, as a result, 22 franchises all over have

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left the system due to underpayment leading to 102 store audits in Australia 2017 (Ferguson,
2017).

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References
Amoafo, P., 2015. Domino's pizza pestel. [online] Prezi. Available at:
https://prezi.com/dam4mwm9ws4l/dominos-pizza-pestel/ [Accessed 7 Oct. 2018].
Ferguson, A., 2017. The market is rapidly losing confidence in Domino's. [online] The
Sydney Morning Herald. Available at: https://www.smh.com.au/business/companies/whats-
the-real-story-at-dominos-20170215-gudszk.html [Accessed 7 Oct. 2018].
Kline, D., 2016. The Biggest Problem with Domino's Pizza, Inc. Stock -- The Motley Fool.
[online] The Motley Fool. Available at:
https://www.fool.com/investing/general/2016/03/22/the-biggest-problem-with-dominos-
pizza-inc-stock.aspx [Accessed 7 Oct. 2018].
Sikarwar, D. and Bhushan, R., 2018. Domino’s lands in trouble for not passing on GST cuts.
[online] The Economic Times. Available at:
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/dominos-in-
trouble-for-not-passing-on-gst-cuts/articleshow/65154911.cmshttps://
economictimes.indiatimes.com/industry/services/hotels-/-restaurants/dominos-in-trouble-for-
not-passing-on-gst-cuts/articleshow/65154911.cms [Accessed 7 Oct. 2018].