Dominos Pizza SWOT Analysis & Strategy

This assignment delves into a SWOT analysis of Domino's Pizza, examining its current position within the competitive food industry. The focus is on analyzing the company's strengths, weaknesses, opportunities, and threats, particularly in light of their significant growth in online sales. It encourages students to propose strategies for Domino's to leverage its online success while also developing effective in-store dining experiences to complement their overall business model.

Management accounting 2
ACM 4500

TABLE OF CONTENTS
Part 2..........................................................................................................................................3
Management accounting issues raised by article...................................................................3
SWOT analysis of Dominos...................................................................................................4
Part 3..........................................................................................................................................5
Recommendations for identified issues.................................................................................5
References..................................................................................................................................8

PART 2
Management accounting issues raised by article
Domino’s technical problems in France:
Recently the issue of data stealing has been acknowledged by Domino’s in France. In
France, hackers had stolen data from 592,000 French customers and 58,000 of Belgian
customers. The stolen data included all the personal details of customers like full names,
addresses, phone numbers, email and their passwords, delivery instructions and also favourite
pizza toppings. Hackers demanded a ransom amount of €30,000 (£24,000) and same was
posted by them on a site named Pastebin (Letts & Morgan, 2017). Same was admitted by
management on their official Twitter account that their encryption data system in France has
been hacked by seasoned professional. As hackers were in a position to decode encryption
including passwords thus customers were suggested to make quick modification in their
personal details (David & David, 2016). This was the major weakness of company as their
reputation was adversely affected due to blunder in online transactions. Further, they have to
bear financial loss to prevent legal claim and make changes in their operational activities.
Domino’s issues of underpayment to staff in their franchise store:
The issue of underpayment has been identified in the audit of various franchises of
Domino’s. By considering management strategies, it can be noticed that company have
conducted programs for focusing on the issues of underpayment to staff members in various
franchise stores. However, the programs implemented by business were not successful to the
full extent as there is still $770,000 unpaid wages and superannuation in which only 15 store
audits were finished and audit of 41 stores are still pending (Letts & Morgan, 2017). In
addition to that, they recovered $249 million regarding unpaid wages through reviewing 55
complaints. This issue is creating a threat to business as it is reducing the morale of
employees and affecting work environment in an adverse manner.
Domino’s slow sales Growth:
According to Mr Meiji, growth in the past year is very difficult to match. The company had
attained commendable growth due to various acquisitions and takeovers. These strategies had
executed in Germany, Japan and also bought Sprint Pizza (Melnykn et.al, 2014). This

approach had inflated the growth of previous year due to which growth of previous years is
not compatible. It is very difficult to match that pace of growth without acquisitions and take
overs in future years. This approach is a strength as well as an opportunity for the company as
they can their business on an international level by resolving operational activities (Otley,
2016). Further, the company can also raise investment as they are having significant positive
growth in which will influence for shareholders for investment. As this year the total sales
rose by 15 percent, and for the first time, it exceeded $1 billion. In this financial year, the
firm growth expectation was scaled back from 13.6 percent in Australia and New Zealand in
2017 to 7-9 per cent (Letts & Morgan, 2017). Mr Meiji further explained that it would still be
a strong result and these extraordinary numbers are being rolled off, as it is a business of
maturity.
SWOT analysis of Dominos
Strengths
 Dominos major strength lies within
its quick service and diverse menu; it
also has a high brand recall because
of its constant marketing (Fullerton,
Kennedy & Widener, 2014).
 Marketing strategy has created self-
awareness and guarantee from the
brand in the marketplace.
 Dominos also has an outstanding
channel network, with 9000
franchise in over 60 countries (Smith
& Driscoll, 2017).
 Low prices in order to attract more
of customers and effective supply
chain management
Weaknesses
 Company lack operational
framework, as it has many outlets
and it is difficult to address
operations, thus it results in hard to
maintain quality.
 Reduced sales in principle market,
due to the increase in consciousness
of health and security concerns
(McLaney & Atrill, 2014).
 Dominos also has low staff
maintenance; it is because their
employees lack proper guidance and
training.
Opportunities
 Dominos has an opportunity that is
Threats
 The major threat for Dominos is

the market is expanding
increasingly; the company can
implement the strategy by target
developing economy.
 Dominos can increase revenue by
reinforcing the outlet network by
penetrating the existing market
(Fullerton, Kennedy & Widener,
2013).
 The company can introduce Health
conscious that contains low fat as it
will result in increased revenue.
 Another opportunity for Dominos is
that it can establish restaurants by
this company can achieve greater
heights.
increasing competition, as it can
affect directly to the sales of the
company.
 Changing demands and eating habits
of the customers, as a consumer is
now more conscious towards their
health thus this affects the marketing
of dominos (Laudon & Laudon,
2016).
 Managing of cash flow and costs
tends to be difficult to the business,
as the operating costs rise, the
company has to change its pricing
structure, and it will affect the sales
of the company.
 IT hack in France as it had affected
their market reputation in an adverse
manner.
PART 3
Recommendations for identified issues
As a management consultant of Dominos, it is significant to assess the SWOT
analysis of Domino’s before making consideration of any company recommendation. For
achieving effective strategies, it is necessary for a business to make consideration of strength,
weakness, opportunity and threats. Strengths which must be marked in the business of
Dominos is supported by the fact that stores are owned by the business that is situated in
more than 60 countries and includes an entrenched network connection business segments
which are owned and authorized (David & David, 2016). Domino’s is one of the most well-
known and primary pizza deliveries corporate within US borders and approximately employs
10,500 employees.

Integration of Domino’s Pizza has a powerful brand equity which in turn provides a
significant competitive edge. Another considerable change to be considered is the intelligence
of marketing services implemented by the company. These marketing strategies have a great
contribution to the success and brand loyalty of the company, which contains an influence of
initiating maintenance and differentiation (Ahmed, 2015). The company has implemented
effective supply chain management that has provided advantages in certifying valuable
supply in all the stores of the company. A major drawback which affects the company is the
declining or weakening of the bottom line because of low sales and growth in their actual
operational activities and security issues.
There are several threats existing in the company which is inclusive of increasing self-
awareness of customers on the unsuccessful consequence of fast food which contains high
calories and security threat after the tragedy of France. By considering the above-described
aspects, the company must focus on growing its network chain in developing countries so as
to drive much more opportunities in two developing countries. Dominos has below 2% of
stores located in India and China (Laudon & Laudon, 2016). This percentage must be
increased to over 20% in upcoming three years so as to fulfil the requirement of company’s
strategy of expansion. Next, the company must concentrate completely on consumer
satisfaction and brand loyalty in order to ensure that all stores are delivering best of delicacy.
Subsequently, Dominos must make consideration in using their smart techniques of
advertising to concentrate on the competitors or rivals in the marketplace rather than only
focusing on just one competitor, Subway. After that, Dominos is required to develop its
innovative and creative strategies on the basis of market conditions of that particular country
and ensuring the effectiveness of online strategies of selling and advertising (DRURY, 2013).
Dominos must aim at developing its brand reputation as it is considered to be the major
strength company must have (Syed, 2016). This can be attained by continuing reinforcing and
making strong the brand in the marketplace. One other essential element that requires being
practised by the company is extremely changing social-culture and dynamic lifestyles of the
public in the US and around the world as well. Internet is been used by a number of people
and the rate of using it is increasing day by day and the growth of the company can be
supported by using keen glance at the own store dining strategies. Ultimately, Dominos must
consider customer opinions and ratings to improvise their objectives as well as strategies.

Products of the company must represent these changes when the business is to attain
continuity. For this aspect example of McDonald can be considered as they focuses on socio-
cultural changes that take place and after that guide their employees so as to fulfil the
changing demand needs of customers. According to the above recommendations, Dominos
must concentrate and provide attention to online marketing and sales and use their result to
define their particular in-store dine strategies to counterpart their growth in online sales
(Speckbacher, 2017). In order to achieve goals, the definite path is required that must be
clearly constructed on the strengths and aimed at company’s opportunities (Melnykn and
et.al, 2014). The above recommendations represent existing opportunities and strengths of the
company; they are required to address threats and weakness that the company is suffering at
present.

REFERENCES
Books and Journals
Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2014). Lean manufacturing and firm
performance: The incremental contribution of lean management accounting
practices. Journal of Operations Management, 32(7), 414-428.
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Smith, D., & Driscoll, T. (2017). Key skill sets for management accounting. Strategic
Finance, 98(12), 62-64.
Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2013). Management accounting and
control practices in a lean manufacturing environment. Accounting, Organizations
and Society, 38(1), 50-71.
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach,
concepts and cases.
Ahmed, M. N. (2015). UTILITY OF MANAGEMENT ACCOUNTING TOOLS &
TECHNIQUES FOR THE SUCCESSFUL RETAIL OPERATIONS-A
THEORETICAL FRAMEWORK. Journal of Management Value and Ethics, 5(2).
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Syed, I. (2016). SWOT analysis and operation management decisions of Domino's pizza.
Speckbacher, G. (2017). Creativity Research in Management Accounting: A
Commentary. Journal of Management Accounting Research.
Melnyk, S. A., Bititci, U., Platts, K., Tobias, J., & Andersen, B. (2014). Is performance
measurement and management fit for the future?. Management Accounting
Research, 25(2), 173-186.
DRURY, C. M. (2013). Management and cost accounting. Springer.