Global Markets and Entry Strategy

This report discusses the global readiness of Dominos Pizza, its expansion in India, and the entry strategy used by the company. It analyzes the attractive features of the Indian market and the strategies implemented by Dominos to target the Indian market.

Global Markets and
Entry Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Critical analyses of Dominos Pizza’s global readiness................................................................3
Attractive features in India for Dominos Pizza Company...........................................................4
Entry strategy of dominos pizza in Indian market.......................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Every business plans for taking its business into a new height. For this it is very much
necessary for a business to expand. Expansion can lead the organization towards the direction of
growth and success of the organization. Any business when aims for its expansion, it tries to
enters into the new markets through studying the needs and wants of that targeted market. For
reference purpose this report has taken an example of a company, Dominos. Dominos is an
American Multinational company which specializes in selling pizzas. The company was founded
in the year 1960. This cooperation has its headquarters in the Michigan.
This report discuss about the global readiness of the company, its expansion in India and the
strategy which the company opted for its expansion in India.
TASK 1
Critical analyses of Dominos Pizza’s global readiness
Domino's Pizza is by a long shot the second biggest diversified pizza chain in the United
States. They are the ones who previously imagined the idea of quick pizza with the "thirty
minutes or less" conveyance time. They have stores in 5,701 urban communities worldwide and
2,900 of them are global while the 2,800 branches are in the US. Be that as it may, much the
same as some other examples of overcoming adversity, Domino's Pizza needed to experience
some intense occasions before they arrived at the accomplishment they have today (Baena,
2015).
Domino's opened its 5,000th store by January 1989, moving into Puerto Rico, Mexico, Guam,
Honduras, Panama, Colombia, Costa Rica, and Spain. U.S. sales hit $2 billion. Monaghan named
Dave Black as president and chief operating officer, announcing his own intentions to spend
more time on community work. In May Domino's introduced pan pizza, its first new product in
28 years. This news was hardly as big, however, as Monaghan's October announcement of his
intent to sell the company. After a buyout attempt in the form of an employee stock ownership
plan failed, Monaghan went shopping for buyers. By April 1990 Domino's cut its public relations
and international marketing departments and continued cutting executive and corporate support
staff as part of a company-wide effort to improve profitability. Payroll that year decreased by
$24 million. Kevin Williams, who made his name as a regional director, replaced Mike Orcutt as
vice-president of operations. At the store level, Domino's opened fewer than 300 units in both
1989 and 1990.
The company made it up to date by bringing new and innovative pizzas and other food items.
They also analyze the market thoroughly before making the full and final decision of entering it.
There they analyze about the taste and preferences of that market and also about the economic
condition of that region (Bamiatzi and et.al., 2016). Through the taste and preferences analyzes
the company got to know that what the actual taste of that market is. For example in India

maximum of the people are vegetarian therefore the company has to bring up the vegetarian
pizzas for Indian market. Also through the analyses of economic factor the company can
evaluate the disposable income or amount which the market can spend upon the purchase of a
pizza.
Attractive features in India for Dominos Pizza Company
What attract the company in Indian market can be easily analyses through the macro and
micro environment evaluation. The macro environment is the factors which are out of control of
business but do put an impact upon the economy. Whereas micro analyses factor includes the
raw materials, employees, production process, policies and etc. The macro analyses are done
through PEST analyze which is as follows:
Political: Political issues incorporate administrative edge work working in legal framework
which may trouble the business in differing ways. In India, there isn't as such a factor that may
grasp domino's business. While factors like, laws on business work, contamination and tax
assessment apply on the association which it ought to observe as indicated by rules. The Indian
market is very huge which is considers best for the company as a target (Cardoza and et.
al.,2015). Also it is a developing nation where the people can afford the prices which the
company set for its pizza.
Economic factor: If the district's economy is better so the GDP of the nation will be acceptable,
it is the activity for business as the per capita salary builds individuals will go through more cash.
As indicated by domino's review, it came to realize that generally individuals spend more and
visit all the more frequently, during or start in one of months (Yu, 2013). Additionally, ascend in
expansion rate, prompts augmentation of cost of crude material which likewise leads towards
more significant expenses for products and the other way around.
Social: Domino's is a worldwide and it is essentially introduced from America, in this way, the
association is snowed under by domino's western culture. There are diverse social types of
society which comprises of, high society, white collar class, center privileged, and lower class.
Besides, each and every country, state has their own social standards, convictions, religion,
values which may influence the association around the world.
Technological: At right now, technology is improving, so as preparing and warming broilers
will be of new and proficient technology and will offer productive assistance. Because of this
creative technology there are numerous most recent methods of publicizing like shrewd, through
web; selling through which association can promote their items in considerably more quickly
than at any other time. PC based client information that is MIS (overseeing data framework)
helps in gathering client information, day by day exchanges, future estimating and dynamic. New
vehicles will make their administration increasingly productive (He, Marginson, and Dai, 2019).
Micro analyses, through SWOT analyses

Strengths:
 Dominos have solid help offices like
'30 min's NAHI TO FREE' (in any case
FREE)
 In India Domino's is attempting to pull
in the white collar class and lower
working class individuals who are
intrigued to spend their cash on pizza
yet in low cost
 Assortment of Pizza's: Dominos Pizza
has a ton of assortments like veggie
lover and non-vegan. In vegan bunches
of pizzas are accessible just as non-
veggie lover as well (Nie, Dowell, and
Lu, 2012).
Weaknesses:
 The nearby café and a couple of
neighborhood brands like Smokin Joe's
and gracias and so on, Domino's for the
most part faces rivalry between two
players Pizza Hut and Smokin Joe's.
 They don't have eat in office: they don't
have the eat in office in their outlets
that gives its rivals advantage over it
and in light of the fact that its principle
rival pizza cabin have this office and
dominos is confronting the fundamental
rivalry from pizza hovel.
 Outlets need space: the outlets need
space which makes the issue of
constrained sitting space for clients and
now and then clients need to trust that
the seats will be empty for them.
Opportunity:
 New café at occupied spots: it should
open its new eateries at occupied and
swarmed places where it can draw in
more clients.
 Greater outlets: it should build the size
of its outlets as its outlets all being
littler than the contenders thus giving
less space for clients to sit and
appreciate the feast.
Threats:
 Pizza cabin primary upper hand over
dominos is eating in office: the
principle contender pizza hovel has a
one of a kind eat in office that makes it
unique and obviously superior to
dominos (Popa and Ponorîcă, 2012).
 No remove counters for pizzas: doesn't
have any remove counters which thusly
hurts its own market and the purchasers
coming to it.
Entry strategy of dominos pizza in Indian market
The company, Dominos pizza when considered the Indian market as their prospect
country for targeting them meanwhile also analyzes the taste and preferences of people reciting
there. The company through the analyses gets to know that the people of India do not much focus
upon non vegetarian products (Kozhikode and Li, 2012). Majority of the population of the
country is vegetarian and in non veg food they mostly prefer the chicken only. Unlike other
countries Indian people avoid the consumption of beef, pig, or any other kind of meat besides
chicken. Therefore to cater the needs and taste of Indian people, the company launches or bring
up the pizzas which is totally with accordance to the taste of Indian market.
The company first launches and establishes its stores at the major cities such as Delhi, Chennai,
Mumbai, Pune and so on. Because according to the research these cities have the vast population

and are very much developing in economic and technological factor. The company also did
many advertising and promotional activities through ads on TV and newspapers, holders,
offering the discounts and offers such as buy 2 get 1 free. Through the vast degree of marketing
and advertising activity, the company get succeed into its objectives (Kumar, Gaur and Pattnaik,
2012).
CONCLUSION
From the report discuss above, how the company Dominos has acquired through the
globe is discussed. The company before entering into the Indian market performs an evaluation
of macro and micro environment through PEST and SWOT analyses. The report also includes
the strategies which the company the company has opted to target the Indian market.

REFERENCES
Books and Journals
Baena, V., 2015. European franchise expansion into Latin America. Management Research
Review.
Bamiatzi, V., and et.al., 2016. Revisiting the firm, industry, and country effects on profitability
under recessionary and expansion periods: A multilevel analysis. Strategic management
journal. 37(7). pp.1448-1471.
Cardoza, G., and et. al.,2015. China goes global: public policies' influence on small-and
medium-sized enterprises' international expansion. Asia Pacific Business Review. 21(2).
pp.188-210.
He, G., Marginson, D. and Dai, X., 2019. Do voluntary disclosures of product and business
expansion plans impact analyst coverage and forecasts?. Accounting and Business
Research. 49(7). pp.785-817.
Kozhikode, R. K. and Li, J., 2012. Political pluralism, public policies, and organizational
choices: Banking branch expansion in India, 1948–2003. Academy of Management
Journal. 55(2). pp.339-359.
Kumar, V., Gaur, A. S. and Pattnaik, C., 2012. Product diversification and international
expansion of business groups.Management International Review. 52(2). pp.175-192.
Nie, W., Dowell, W. and Lu, A., 2012. In the Shadow of the Dragon: The Global Expansion of
Chinese Companies--and how it Will Change Business Forever. Amacom.
Popa, A. F. and Ponorîcă, A. G., 2012. Franchising contract–a modern juridical and economic
instrument for business expansion. URL: http://oaji. net/articles/2017/5275-
1511862451. pdf.
Yu, H. S., 2013. Cavity expansion methods in geomechanics. Springer Science & Business
Media.