MGMT20132: Dominos' Disruptive Business Model and Smart Products

This essay provides an overview of business models and disruption, focusing on Dominos as a case study. It discusses how Dominos has implemented a disruptive business model through the use of smart connected devices, transforming its delivery and customer service strategies. The essay examines the opportunities and threats associated with this disruptive approach, such as increased customer reach versus challenges in serving customers unfamiliar with internet-based applications. The analysis highlights the importance of digitization and innovation in maintaining a competitive edge in the fast-food industry, concluding that while disruptive models offer significant growth potential, companies must address potential drawbacks to ensure continued success and customer satisfaction. Desklib provides access to a wide range of past papers and solved assignments for students.

Running head: BUINESS MODEL AND DOMINOS
Business model and Dominos
Name of the student
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Introduction
The paper intends to discuss about business model and disruption. In order to understand
the concept of disruption and business model, the essay begins with giving the overview of
business model as well as disruption (Chesbrough, 2010). While business model alluded to the
plan of action of an organization, disruption means innovation in the plan of action by smart-
connected gadgets. In this easy, the business model of a famous fast food chain company
Dominos has been discussed. The business model which has been discussed is disruptive.
Additionally, the study sheds light on the two above mentioned perspectives in business. The
main purpose of the essay is to understand the importance of disruptive business model in
business.
Overview of ‘business model’
The term business model refers to the concept of plan of action that defines how he the
company will generate more revenue from market and will pool profit accordingly. However,
business models vary from one business to another (Caro & Martínez-de-Albéniz, 2015). For
instance, a business model for a automobile company completely differs from a business model
of a restaurant. A business model explains what products will be manufactured, what services
will be delivered and the procedure to execute the plan including the budget and so on. A
business model mainly sheds light on the rationale of the organization while addressing the
customer requirement (Clinton & Whisnant, 2018). Through a business model the organization
gets a clear idea of other companies’ business strategy and the amount of revenue they generate
from market. It also gives an insight as to what are the ideas they apply in their business to make

it successful. As per the studies, different companies have different setting of business model
with a same purpose. Therefore, it can be said that a business model helps an organization to
navigate the path of success by mapping a plan of action. There are three different components
of a successful business model that are value proposition key resources and processes and profit
formula. These three elements are the essential part of a business model.
Disruption
The term business disruption alludes to the innovation in the plan of action. Often those
innovations are implemented through smart-connected devices. Disruptive business model
rejects the traditional strategies while implementing possible changes in the business model (De
& van, 2015). On one hand, traditional business model follows the old principles without any
changes. On the other hand, disruptive business model seeks risks and takes experimental
measures for the further growth of the company. Some instances of disruptive business models
can be given which have been adopted by different well-known organizations.
The company Amazon has brought revolutionary changes by introducing Amazon Prime.
In Amazon Prime application, famous blockbuster movies are streamed (Forbes, 2018). It has
both free and paid version. Viewers can enjoy watching recent movies with the paid version of
Amazon Prime. As Amazon has changed the scenario of movies and videos, it also brought
changes in the sphere of shopping industry (Osterwalder & Pigneur, 2010). Being the leading
online shopping station in the industry, the company has made available of all the leading brands
over just one application. They have included smart-connected devices in their business and
deliver their products to the customers at their choice of location. They have made possible all
these through a single application. With the digitization, Amazon not only offers fast delivery to

the customers but also it designed their application and website in such a manner through which
the customers can keep a track of their orders. Demolishing the traditional principle of shopping,
where customers had face lot of trouble while returning the orders, Amazon made the return
procedure easy (Reinventing Your Business Model., 2018). The payment method of the
company is based on the smart connected devices; through which customer make their payments
without any hassle. The implementation of the smart connected devices means digitization of the
company. The primary purpose of the digitization is to reach out to more customers making the
extensive use of the technology. When a company adopts the strategy of digitization, it thinks
beyond the traditional practices of business strategy. Organizations incorporate smart connected
devices in terms digitization which has elevated the business innovation to a more integrated
level.
The digitization strategy can be exemplified by Amazon again. The company Amazon
not only has brought changes in the shopping industry, bust also changed the scenario of service
industry. The customer service of the company is undoubtedly satisfied a large number of
customers across the world. Over the online application n and website, the company allows its
customers to give a direct feedback of their service (Zott, Amit & Massa, 2011). Meanwhile it
provides possible assistance to the customers regarding product information, delivery services
and many other aspects. Along with that the company also gives resolves the problems that the
customers experience regarding the service. All of this is based on the technology that the
company has adopted as part of its digitization strategy.

Dominos and its digitization strategy
The popular fast food chain Dominos has implemented innovation in it business model
through which the company has changed the scenario of delivery by incorporating smart
connected devices in their business. Through the internet based application, Dominos allows the
customer to place orders without any difficulties. The main aspect of it business strategy is the
delivery of the food that it offers (Porter & Heppelmann, 2014). Within a minimum time, it
delivers pizza to its customers. The smart connected devices are able to take orders, monitoring
of the process of the making pizza and customer services. Along with that, the company through
the smart connected devices keeps track of the delivery persons so that the customers are
satisfied. Beside their own application, Dominos is also available on other food delivery sites.
T5he purpose behind this is to reach out to the maximum customer area (Porter & Heppelmann,
2014).
Its latest inclusion in terms of the digitization is its mobile application, which is easier for
the customers to make an order from anywhere. The company Amazon not only has brought
changes in the delivery game, but also changed the scenario of service industry (Zhu, & Furr,
2016). The customer service of the company is undoubtedly satisfied a large number of
customers across the world. Over the online application n and website, the company allows its
customers to give a direct feedback of their service. Meanwhile it provides possible assistance to
the customers regarding product information, delivery services and many other aspects (Pine, B
& Gilmore, 2016). Along with that the company also provides assistance to resolve the problems
that the customers experience regarding the service. All of this is based on the technology that
the company has adopted as part of its digitization strategy.

Opportunities and threats of the disruptive business model: Dominos
The disruptive business model has both opportunities and threats to the business.
Undoubtedly, Dominos is one of those companies, whose demand in the market is increasing day
by day. Most of the customers prefer placing order over mobile application and opt for the home
delivery option. Presently, in some remote areas, the company charges extra for the delivery of
its products. As a result, it has been seen that many of the customers withdraws their order for
that extra charges. If the company appoints more employees in the delivery section and provide
free delivery options to the customers, especially in the remote areas, it can gain more customers
in order to further growth of its business (Zhu, & Furr, 2016).
On the other hand, the treat emerges from the implementing smart connected devices is
that the some customers often face difficulties in understanding the concept of internet based
applications and the websites (Kavadias, Ladas & Loch, 2016). As a result, they face negative
experiences and create consequences, which in turn also create difficulties for the customer
services departments to resolve the issues. It further damages the brand image of the company
also.
Conclusion
To conclude, it can be said that disruptive business model is grossly adopting by the most
of the established organizations across the world in order to increase revenue rate. The paper
discusses about business model and disruption. In order to understand the concept of disruption
and business model, the essay began with giving the overview of business model as well as
disruption. In this easy, the business model of a famous fast food chain company Dominos has
been discussed. The business model which has been discussed is disruptive. Additionally, the

study shed light on the two above mentioned perspectives in business. The main purpose of the
essay is to understand the importance of disruptive business model in business.
References
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