MNG00114 Assignment 2: Competitive Strategy of Domino's Pizza

This report provides a comprehensive analysis of Domino's Pizza's competitive strategy, focusing on its Australian operations. It begins with an introduction outlining the company's background and business model, emphasizing its franchise-based growth strategy. The report then offers several recommendations, including market penetration, cost leadership, and reward system enhancements. It explores market development opportunities, particularly in Asian countries, and highlights the importance of online sales and effective marketing strategies. The analysis also addresses customer loyalty, communication within the organization, and innovative strategies for improvement. The report concludes by summarizing key findings and providing a bibliography of cited sources. The report uses concepts like VRIN/VRIO and Porter's Five Forces to analyse the company's environment.

RNNING HEAD: COMPETITIVE STRATEGY 0
Competitive Strategy: Domino’s Pizza

COMPETITIVE STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
Recommendation........................................................................................................................2
Market penetration.................................................................................................................2
Cost leadership.......................................................................................................................2
Reward system.......................................................................................................................3
Market development...............................................................................................................3
Online sales............................................................................................................................3
Market strategies....................................................................................................................4
Customer’s royalty.................................................................................................................4
Strength communication........................................................................................................4
Innovative strategies...............................................................................................................5
Conclusion..................................................................................................................................5
Bibliography...............................................................................................................................6

COMPETITIVE STRATEGY 2
Introduction
The second largest franchise in the United Kingdom is Domino’s that was incorporated in
1960. The organization has stores worldwide and operates a franchise too. This assignment
will focus on the business strategy of the Domino's pizza (Australian operation). The business
model of the Domino’s is based on the franchise growing sales and not the profits with the
headquarters taking a royalty from the sale through 1 million of its pizza every week (Jolly,
2019)
This report will focus on the concept of the Domino’s company in taking consideration of
their environment i.e. internal environment as well as external environment. It will also an
emphasis on the organization resource and capabilities, various concepts such as VRIN
/VRIO.
Recommendation
As per the literature review, this the recommendation should be adopted by the company
Market penetration
In the current market Domino’s is one of the leading company in its industry. There are so
many competitors in the industry like pizza hut. Penetration on this market results in the
increase in the market share of the association. It is said that the franchise business has very
high growth in the industry, Domino's pizza can increase its market share. By enhancing the
expansion, promotion and reducing the cost can result in the company's success in the
industry (Malviya, 2018).
Cost leadership
The supply chain of the Domino's is domestic in nature with result in the company can effect
on its costs. This type of cost issue the price of the pizzas in a developing nation, reducing

COMPETITIVE STRATEGY 3
costs helps in reducing the cost and achieve customer satisfaction. In developing nation
reducing costs also effective in eliminating the competition in the market. In order to deal
with the substitutes in the competitive industry is very important to emphasize more on the
price and quality because the price along with quality is one of the components which affect
the choice of the customers (Michael A. Hitt, 2012).
Reward system
Currently, Domino’s used the premium reward system on its customers and the franchisees. It
helps the company to get back the good revenue from its sales. To increase such good reward,
it is important to the Domino’s to increase such premium system. Domino's can offer gift
cards, free drinks, combo meals to the lucky customers.
Market development
Domino’s takes the second position globally as well as locally. Domino’s operates in more
than 50 countries in the today era. There are a lot of opportunities for the fast food industry in
Asia countries. The percentage of the population is very high and the peoples living there
spend income more on fast food. Expanding the business in these countries can help the
company in getting a good return in market share. Opening new franchisees or stores will be
an effective strategy (Mullins, 2019).
Online sales
Many of the industry use the online sale as this is a very effective step for achieving success.
The company should direct consumers for online shopping as this is a very effective way of
achieving satisfaction. As per the statics, Chinese people spend $750 on online sales last year.
This is also one of the purity of the Domino's company to expand its business in China. India
and China hold 2% of Domino’s market in the market. The number of the store held is

COMPETITIVE STRATEGY 4
increased to 20% in the upcoming years, as this will help the company to meet the company
expansion (Shashidhar, 2018).
Market strategies
The marketing strategies of the domino’s are half of the pizza hut expenditure. To compete in
the competitive market, Domino's pizza should increase its market expenditure. For the
developing nation, “act local” marketing strategies should be adopted to capture the local
company and eliminate the effect of the domestic pizza producers. For the developing nation,
Domino’s should emphasis on the mobile sector. Coupons, reward system, the small online
video should be implemented as well as less costly strategies that should be applied by the
Domino’s (Özlem Sandıkcı, 2011).
Customer’s royalty
Quality of the product is one of the important factors that is considered by the company.
Domino’s should majorly focus on the quality of the products in which they deal as well as,
they should ensure that all the store should deliver the best quality of products to the
consumers. This guideline should be followed strictly if companies want to achieve the set
result in their industry (Tareq Ahram, 2018).
Strength communication
If Domino’s want to work effectively then there is a need to be synergy between franchise,
head office, and employees. This can be achieved by bringing them together franchise
owners, managers with the employees of the company quarterly, yearly or monthly to discuss
the ongoing performance of the company and steps which should be taken by the company to
achieve the set objectives. This can help the franchise to solve their business problem by
discussing & taking the suggestion of the professionals. One of the advantages from, this
meeting which can be achieved by the company is there will be the transfer of the knowledge

COMPETITIVE STRATEGY 5
within the organization which will overall help the employees and managers and find
possible ways to minimize them costs ethically.
Innovative strategies
Domino's should improve their marketing strategies as they have adopted online marketing
strategies. Pizza hut performs better in comparison to Domino's when we compare in terms of
the online sector despite investing the same money in the same sector. Domino’s current
operating hybrid model is 70 % franchise and 30 % owned. This should be changed and
franchise store should be increased to 85% and owned stores should decrease which will
result in cost reduction (Abramovich, 2018).
Conclusion
From the above analysis, it can be sum up that, Domino’s is one of the leading company in
the fast food industry. The company has acquired a good market share, a large number of
customers who acquire good control over its inventory and help in increasing the profits.
Company advertising strategies are effective and Domino’s had worked to improve the sale
of the company. Although the company has various threats, which can put the company into a
serious condition, various recommendations are given on that which should be followed by
the company as and when needed.
Bibliography

COMPETITIVE STRATEGY 6
Abramovich, G., 2018. Domino’s CDO Shares His Secret Sauce For Innovation. CMO, 18
April.
Jolly, J., 2019. Domino's sells more than 500,000 pizzas in record UK trading day. The
Guardian, 29 January.
Malviya, S., 2018. Domino’s doing ‘very well’ in India under new management. The
Economic Times, 22 February.
Michael A. Hitt, R. D. I. R. E. H., 2012. Strategic Management Cases: Competitiveness and
Globalization. 10 ed. s.l.:Cengage Learning.
Mullins, 2019. Marketing Management: A Strategic Decision-Making Approach. s.l.:ata
McGraw-Hill Education.
Özlem Sandıkcı, G. R., 2011. Handbook of Islamic Marketing. illustrated ed. s.l.:Edward
Elgar Publishing.
Shashidhar, A., 2018. Domino's pizza in growth mode. Business today, 9 May.
Tareq Ahram, W. K. R. T., 2018. Human Systems Engineering and Design: Proceedings of
the 1st International Conference on Human Systems Engineering and Design. Berlin,
Germany: Springer.