Innovation and Sustainable Business Development: A Case Study of Domino's Pizza

Running head: Innovation and Sustainable Business Development
Domino’s Pizza
Student’s name
Name of the Institute

Innovation and Sustainable Business Development
Introduction
A business model describes company’s plan to generate revenue and profit. It is a step by
step plan for achieving profitability in specific marketplace. It explains the rationale for how
business creates, delivers and captures value in different contexts. The construction of business
model forms the part of business strategy. A business model is abstract representation of
organization, be it graphical and textual designed by organization presently and in the future.
Nowadays business models depend on the technology used. Entrepreneurs are creating new
models based on technology. Using these models and technology efficiently, companies reach a
large number of customers. The overall aim is to achieve above average return. It describes how
an idea becomes a business model. The companies may have same offerings but different
business models. It is blueprint of operations of organizations. Business model includes the
following components: value proposition, target customer segment, customer relationship,
distribution channel, value configuration, core capabilities and revenue model, competitive
advantage (DaSilva & Trkman, 2014). For a start-up business model is first thing to be
developed. Business model helps in depicting the feasibility of venture. These models are
carefully inspected by the shareholders. However, a business model is never static (Guttentag,
2015). When the company evolves, new revenue system opportunities often present themselves.
The business models are amended by competitor’s action in regard to provide better options to
customers. Overall, the business model is way of translating value proposition into revenue and
profits.
Analysis

Innovation and Sustainable Business Development
Disruption is problem or disturbance that disturbs process, activity or event. When
mainstream customers starts adopting the new offerings in bulk, the disruption has taken place
(Christensen & McDonald, 2016). It is powerful innovation driven growth. It basically defines
how emerging technology can redefine the ways of doing business. It emphasise on
understanding business engagement with customers and creating seamless experience. For
example virtual reality store by eBay, where shoppers can download the app on their mobile
phones, attach it with pair of shopticles and then start shopping in 3D. This is more than a
phenomenal way of engaging customers. Internet of things, Machine learning, Artificial
Intelligence are the digital disruptors and it would be harmful to underestimate their impact and
magnitude (Slama & Bhatnagar, 2015). Most of the companies try to follow the path of
digitization. It helps businesses to improve efficiency, offer better communication channels,
improve customer journey and enter into new segments. But it is necessary not to lure by these
technologies until the businesses get right Return on Investment on their business spend. The
customer should come first, so every decision should fulfil this agenda.
In this disruptive environment, established business models are less durable. These
models are rightly displaced and disrupted. For example online courses impact business schools.
There are long standing beliefs about customer preference, role of technology, cost drivers etc.
They are considered static until some player violates (Martins, L. L., Rindova, V. P., &
Greenbaum, 2015).
Dominos’ Pizza is one of the biggest pizza chains. It has repeatedly reported strong
growth in international retail. The company follows franchise model. It allows the company to
diversify, reduce the risk and earn above average returns. Domino’s Pizza Enterprises is the
master franchise of Dominos in Australia.