Strategic Analysis of Domino's Pizza Australia: A Business Report

This report provides a comprehensive strategic analysis of Domino's Pizza Australia. It begins with an executive summary outlining the report's key areas, including a SWOT analysis that examines the company's strengths, weaknesses, opportunities, and threats within the Australian market. The report delves into Domino's competitive advantages, strategic options, and financial performance. The analysis covers the market size and trends, corporate and financial performance, and situational analysis of Domino's. The report highlights the company's strong brand, distribution network, and speed of service as key strengths, while acknowledging weaknesses like staff retention and the balance between delivery and dine-in options. Strategic options such as product diversification and technology integration are discussed, along with recommendations for improvement. The report concludes that while Domino's holds a leading position, continuous adaptation of strategies is essential to maintain its market dominance in the competitive pizza industry. The report references various sources to support its analysis.

Running head: STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
Executive Summary
The analysis in the report is based on the strategies that are undertaken by Domino’s Pizza
Australia. The organization is analysed based on the SWOT framework, where the strengths,
weaknesses, opportunities and threats of Domino’s with respect to the other organizations in
the market are discussed. The competitive advantage of Domino’s over the other
organizations is also analysed in the report. The strategic options of Domino’s are also
analysed in the report and the ways by which the organization tries to increase its market
share is discussed in detail. The report is concluded by saying that Domino’s holds the first
position in the market, however, the organization needs to bring changes in their strategies so
that they can maintain this position.

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Table of Contents
Introduction....................................................................................................................3
Size and trends of the market Domino’s........................................................................3
Corporate and financial performance.............................................................................4
Situational Analysis of Domino’s Pizza........................................................................5
SWOT Analysis of Domino’s Pizza..........................................................................5
Competitive advantage of Domino’s.............................................................................7
Strategic options of Domino’s.......................................................................................7
Recommendations..........................................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................9

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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
Introduction
Domino’s Pizza was established in the year 1960 by two brothers James Monaghan
and Tom Monaghan when they started a pizzeria named “Dominick’s Pizza” located in
Ypsilanti, Michigan. The two brothers then separated their businesses and James sold his
business for Volkswagen Beetle for the purpose of deliveries. Tom acquired two more
pizzerias in the year 1965 and the organization was further renamed as Domino’s. The
organization established its branches in Australia in the year 1983 and the first store was
opened in Springwood, Queensland. The food chain had to face many setbacks during the
first few years, however, they expanded their branches in many other areas of the country
including, Sydney, Brisbane and Perth. The franchise of Domino’s was purchased by Silvio’s
Dial-A-Pizza and around 70 stores of the company were converted to Domino’s
(Dominos.com.au., 2018).
The analysis in the report is based on the discussion of different factors related to the
business which include, competitive advantage of the organization, performance of the
organization financially and the SWOT analysis.
Size and trends of the market Domino’s
The size of the market of an organization mainly determines the market share of that
company in the country. The dominance of an organization in the market is determined by the
market size and market share of the company in the country. Domino’s has the highest
market share in the pizza selling industry of Australia. Pizza has become the highest selling
takeaway option for the last few years. This has made Domino’s the highest selling pizza
brand in the country. According various researches, more five million Australian citizens
have ordered pizza once in a week. The market share of Domino’s has increased considerably
from 2012 to 2016. The sales of pizzas in Australia has been dominated by Domino’s and the

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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
second position in the market was taken by Pizza Hut followed by the other pizza brands
(Rutsaert et al., 2014).
Figure 1 (Dominos.com.au., 2018)
Corporate and financial performance
The financial performance of Domino’s has improved in the year 2016 and the profit
was recorded as $92 million and the increase in the profits was determined as 43.6%. The
overall network sales of Domino’s have increased by 32.7% and the store sales of the
organization had increased by 10.9% all across the stores of the group and the growth was
highest in New Zealand and Australia (Bharadwaj, Varadarajan & Fahy, 2015).

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Figure 2 (Kolbina, 2015)
Situational Analysis of Domino’s Pizza
SWOT Analysis of Domino’s Pizza
Domino’s is leading the pizza chain business in Australia and it is considered to be
the strongest among the fast food chain that originate in Italy. However, Domino’s still has to
improve a lot in their profits when compared to other food chains like KFC and McDonalds.
Strengths – The brand of Domino’s is strong and this has been achieved with the help
of heavy advertising policies formulated by the organization. The distribution and marketing
network of Domino’s is another major strength of the organization. The network of the
organization is spread across over 60 countries with more than 900 franchises (Kolbina,
2015). The speed of service that is provided by the organization is also helpful in
differentiating the organization from the others in the market. Domino’s also provides many
alternatives to satisfy the needs and demands of the consumers. The supply chain of the

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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
organization is also quite efficient in nature and help in providing quick service to the
customers.
Weaknesses – The maintenance of operations of the organization becomes difficult
due to the huge number of outlets all over the world. The staff retention policy of Domino’s
is also not efficient in nature. Domino’s has less eateries and more delivery options as
compared to the other companies, which acts as a disadvantage for the organization
(Martikainen, Niemi & Pekkanen, 2014).
Opportunities – The expansion of the operations of Domino’s to the other countries
of the world is a huge opportunity for the organization. Domino’s can penetrate the market so
that they can increase their revenue and profitability as well.
Threats – The direct competition and the indirect competition of Domino’s in the
market can act as a threat to their sales and revenue. The health factor of the food products
and the increasing consciousness of the customers related to the health impacts of food is a
major threat to the operations of Domino’s. The increase in the costs of raw materials is
another factor that can exert pressure on the sales and profitability of Domino’s (Wagner III
& Hollenbeck, 2014).

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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
Figure 3 (Dominos.com.au., 2018)
Competitive advantage of Domino’s
Domino’s is leading the pizza market in Australia for the last few years with a market
share of 35% and they are enjoying the competitive advantage in the market based on the
pricing as well as the quality of the food products. The strong brand name and extensive
advertising is the major competitive advantage of the organization (Baker & Sinkula, 2015).
Strategic options of Domino’s
The major strategic changes that has occurred in Domino’s in the recent years is the
change in the product offerings with low cost products and the health related products. The
marketing policies of the organization has also been changed and they have found ways to
engage the customers in the processes of the organization. Domino’s has brought changes in
the technology related to the processes of the organization. This has been done to improve the
experience of the customers who are eating their pizza (Laszlo & Zhexembayeva, 2017).

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STRATEGIC ANALYSIS OF DOMINO’S PIZZA AUSTRALIA
Recommendations
The major recommendation that can be given to Domino’s is to improve their
marketing policies to attract more and more customers. They can also expand their operations
in Australia by opening more outlets in the other areas of the country.
Conclusion
The report can be concluded with the learning that Domino’s is already a successful
organization in Australia. The organization holds the topmost position in the pizza market of
Australia. However, the organization can further increase its profitability by increasing the
number of eateries in the country. Domino’s needs to open more restaurants along with the
delivery options. This will help Domino’s to compete with the other organizations which are
direct or indirect competition for them. This will further enable them to maintain the top
position in the pizza market in Australia.

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References
Baker, W. E., & Sinkula, J. M. (2015). Maintaining Competitive Advantage Through
Organizational Unlearning. In Proceedings of the 1999 Academy of
Marketing Science (AMS) Annual Conference (pp. 206-209). Springer,
Cham.
Bharadwaj, S. G., Varadarajan, P. R., & Fahy, J. (2015). Sustainable competitive advantage
in service industries: a conceptual model and research propositions.
In Proceedings of the 1992 Academy of Marketing Science (AMS) annual
conference, Springer International Publishing(pp. 441-443).
Dominos.com.au. (2018). Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. Dominos.com.au. Retrieved 16 January 2018, from
https://www.dominos.com.au/
Kolbina, O. (2015). SWOT Analysis as a Strategic Planning Tool for Companies in the Food
Industry. Problems of Economic Transition, 57(9), 74-83.
Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability: The next big competitive
advantage. Routledge.
Martikainen, A., Niemi, P., & Pekkanen, P. (2014). Developing a service offering for a
logistical service provider—Case of local food supply
chain. International Journal of Production Economics, 157, 318-326.
Rutsaert, P., Pieniak, Z., Regan, Á., McConnon, Á., Kuttschreuter, M., Lores, M., ... &
Verbeke, W. (2014). Social media as a useful tool in food risk and benefit
communication? A strategic orientation approach. Food policy, 46, 84-93.

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Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing
competitive advantage. Routledge.