Business Model of Domino's Pizza Australia: An In-Depth Examination

This report provides an in-depth analysis of Domino's Pizza Australia's business model, examining its core components and strategies. It explores how the company leverages its business model to drive growth, including the adoption of online platforms, market expansion, and innovative product offerings. The report delves into the company's revenue model, cost structures, and competitive advantages, highlighting how Domino's Pizza Australia has adapted to changing market dynamics and maintained a strong market position. The analysis also covers the challenges and opportunities faced by the company, such as maintaining product quality, managing competition, and expanding internationally. The report concludes by assessing the impact of the business model on the company's financial performance and its future prospects, emphasizing the importance of innovation, branding, and customer-centric approaches for sustained success. The study references various academic sources to support its findings and provide a comprehensive understanding of Domino's Pizza Australia's business operations and strategic decisions.

Running Head-DOMINO’S PIZZA AUSTRALI’S BUSINESS MODEL 1
Domino’s Pizza Australi’s Business model
Name
Institution of Affiliation
Date

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The organization utilizes a business model which guides its process in terms of the process
of production as well as marketing of the product of the organization to ensure that the set
objectives of the organization are reached at. It is due to this that has made Domino’s Pizza in
Australia to have its own business model. The business model involves the plan for the business
showing the operation of the organization with the target of generating profits. It explains the
services and products to be offered to the market and the strategies involved for instance the
costs to be incurred in the process (Zolnowski et.al. 2013). Additionally, the model outlines
procedural plans for profitability to be realized by the business. The models vary from one
business to another, for example, the model of online business is significantly different from that
of the restaurant business. In making an effective business model, the value proposition of the
organization is regarded. It helps the organization to outline ways of offering goods and services
to its clients aesthetically in order to be outstanding in the market segment (Casadesus-Masanell,
& Ricart, 2010). Crucial aspects such as the startup costs, the sources of financing, expenses,
projections of revenues and the target strategies are considered. It should also be closely related
to the existing business for easy adaptability. Disruption of the business, on the other hand,
entails the state of the business to shift in profitability from the existing business model to the
new one. During the shift, the businesses are advised to be careful in order to prevent loss of
clients. Most of the organization is driven by the use of digital technologies to embrace change
for the organization. Organizations need to focus on the right to win, embrace new logics and
start immediately to move the organization (Thompson & MacMillan, 2010). The paper unfolds
various aspects of the business model employed by the Domino’s Pizza in Australia.

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The smart products for the company exposed the organization to new opportunities of
revamping its market sphere through the strategic steps of the model. Customers in the regard
were brought on the online platform, therefore, they had the capacity to see when the products of
the company were ready. Such goods were immediately released giving room to produce more
products, therefore, increasing the rate of selling the products (Teece, 2010). The company was
exposed globally. The steps of the model further exposed the company on the opportunities of
expanding the market of the organization, increased innovation of the products of the company
and the urge of insisting clients to stabilize the market through online approaches. Through the
online platform, the organization had the opportunity to listen to the views of its clients with the
target of promoting the growth of the product. The organization had an opportunity of improving
its recipe so as to promote the growth of the product. These led to revamped costs of the product
due to increased quality that exposed the company to stiff competition by its rivals who offered
their products at lower prices in order to stand in the market (Zott & Amit, 2010). In order for
the company to survive in the market, it was forced to improve the quality of the product and
avoided to raise the price of the product unreasonably which otherwise would have scared more
clients away. Furthermore, the organization due to its new brand of the products had the
opportunities of expanding internationally, saturating the market of the United States
(Kowalkowski et. al, 2011). Despite the fact that the home market is stagnating, it is clear that
the global market is growing rapidly. The Pizza market is growing internationally due to the
quality of the products produced. The organization has a duty not only to expand its market but
also check the technologies employed to conform to the current market. The company to combat
competition, the opportunities of changing the rivalry with the competitors by clearly drawing a

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differentiation in its market through approaches like the rebranding of the product, price tagging
that is convenient to the customers, improved quality as well as easy access of the product
(Casadesus & Ricart, 2010).
Organization in making these new brands of products is exposed to various threats that
range from production to the market spheres. It is a great challenge for the organization to
maintain the design of the product (Perkmann, & Spicer, 2010). Also, due to the profound rivalry
of the competitors offering stiff competition the organization is at risk of lowering the products’
price in order to remain firm in the marketing. These changes expose the organization to realize
small profits thus slow rates of growth. The company incorporating the new systems of
production is an expensive approach in terms of acquiring the products and training the
personnel for operating such systems. The company has a threat for not only keeping the
momentum of sales high but also expanding the company of which its competitors are working
on the same approaches. The organization has not yet achieved the quality of the Pizza as per the
standards required this is the reason as to why the local shops have offered stiff competition
barricading the growth of the firm (Björkdahl, 2009).
The model has led to the effective operation of the business, for example, the increased
market segment, high profits realized as well as advanced in the IT infrastructures are attributed
to the new business model for the company. The company due to the new model, it was the
appropriate move for the organization. The model has led to increased sales of the product by
14.3%increase in the year 2010 (Palo & Tähtinen, 2011). Additionally, the stock of the company
had an increment of 130% from December 2009. In November 2011, the organization was able
to hit a high share price of $ 32.50 per share. The domestic store of the company advanced to

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realizing an increase of 6.3% in the last quarter of 2010. Additionally, the positive consumers'
response, as well as increased store traffic, proved that the model was indeed the best. With the
new model, the company was able to post a total of revenue of $ 1.6 billion from $ 1.4 billion
realizing an increment of 11.9% (Doz & Kosonen, 2010). The increased market segment led to
increasing in the sales of the products resulting in high profits. The dominance in the market was
achieved due to the incorporation of online sector making the organization to be accessed online
by clients ordering the required products promoting the sales. These new changes in the
organization were achieved within the shortest period of time despite its initial position which
was high, realizing these changes got many experts out of surprise. The technology of the
company was revamped and the production of durable goods was achieved. However, the
company needs to fight in order to maintain the growth of the market as well as expand its hopes
of development. Additionally, based on the performance of the organization positive financial
sustainability has been realized by the company. The model achieved impressive approaches not
only on the way the organization approached the clients but also on the way it embraced change
in the organizational structure, organizational culture and the technology approaches that
encouraged service delivery to the clients (McGrath, 2010). The model ensured that the
organization rebranded itself in the minds of the public attracting new clients as well as
maintaining the existing ones of the organization. The model targeted at the innovative
approaches of the company and the creativity aspect in order to ensure that the organization
stands out aesthetically leaving its competitors far away (Thompson& MacMillan, 2010).
Basing on the analysis, the organization works smart in the utilization of the resources
available with the aim of ensuring that the costs of the resources used at low. In order for the

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organization to realize high profits working on the reduction of input is the main drive which
ensures that for profits to be made the price should not be increased profoundly. In the process of
production, resources are key to success making the Domino’s Pizza use effective technologies
and branding approaches in order to get the best end product (Gebauer & Kowalkowski 2012).
Additionally, the organization focuses on the value generations in order to enhance best returns.
The business is forced to an extent its resources basing on the specificity and perspective of the
clients in order to ensure favorable competition by the company. The clear distinction image of
the organization is clearly created by the company facilitating the firm to stand differently on the
market sphere. The organization in this regard strives to have a competitive advantage over its
competitors. Some of the approaches being embraced by the organization entail adaptive
capabilities, innovative capabilities, networking capabilities and dynamic capabilities enhancing
the growth of the organization (Demil & Lecocq, 2010).
Following the approach, the business works hard to ensure that value is provided to the
customers as it makes money for its growth. In the model, the business establishes the number of
clients it will have and the units per customers per transactions to be made. The approach is
based on revenue model aspect (Bock, et.al. 2010). In the model, both the fixed costs as well as
the variable costs are well analyzed by the business venture. The aspect of the target unit margin
is regarded too. In this aspect, the organization has been able to align transactions that yield in
order to cover the overhead costs with the view of establishing profits. The company has been
able to rework in its assumptions in order to achieve the set goals. Resources velocity is also
regarded in this aspect such that the organization designs the speed of using resources with the
target of making profits speedily (Chesbrough, 201).

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To sum up, the organization through utilization of the new model has experienced
milestones in development resulting to the expansion of the organization internationally. The
advancement in the technology, as well as improved infrastructures, are the key drives of the
model, the organization has achieved these and it is still looking at the approaches to improve on
them. The adoption of the model has led to change in pricing approaches such that the
organization has worked on how to improve the quality of production of the product while
working on the price to ensure that it fits the current market. Additionally, it is evidenced that the
organization has been able to employ new strategies of branding to initiate a difference in the
market which has been realized internationally. The market has also been reached via the online
platform, which is giving the company the best results. When these approaches being embraced
by the company are worked upon on how to improve them the way the company is doing
currently, the local market will be enhanced as well as the international markets. Therefore the
future of the organization is great.

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