Competitive Strategy of Domino's Pizza: A Business Strategy Report

This report provides a comprehensive analysis of Domino's Pizza's competitive strategy, focusing on its Australian operations. It begins with an executive summary and table of contents, followed by an introduction that outlines the report's objectives. The core of the report examines Domino's business strategy, including its internal environment, analyzing strengths, weaknesses, opportunities, and threats (SWOT). The report also explores the company's value chain and utilizes the VRIO framework to assess its resources and capabilities. The external environment is analyzed through macro-environmental factors, including political and economic conditions, and a PESTLE analysis. Finally, the report concludes with recommendations for Domino's to improve its competitive position and achieve greater success. The report also references the company's online sales figures and its strategic use of technology.

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

COMPETITIVE STRATEGY 1
Executive Summary
Incorporated in the year 1960, Domino’s Pizza Inc. was established by two brothers. In 1983,
Domino’s became global and hires about 10500 people among their 8700 stores globally. The
pizza organization is highly competitive and has a well-established market. The popularity of
technology and the internet is changing the procedure of ordering a pizza. Inside the
Domino's industry, numerous attributes make it emerge from other industries. Domino's takes
a very solid brand image. They can grip clients because of their image. Nevertheless, the
reduction in the economy has forced numerous consumers to keep down in their spending,
bringing about lower revenues. By this, Domino's could use the spreading development in the
inexpensive food organization in China and India further strengthening their good wealth.
In any case, a new marketplace comes up with a new challenge, which is a threat to
Domino’s industry. Within a short period, the company should emphasis on providing then
more coupons, and enhance sales and combat with tough competitions. The organization can
also an emphasis on refining the online procedure. In the long term, Domino’s should focus
on their customer's relationship which will result in increasing the market share. This report
reflects the competitive strategy of the association the factors affecting the organization
performance and the recommendation which should be followed by the company to achieve a
huge success.

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Table of Contents
Introduction................................................................................................................................3
Domino’s- Business Strategy.....................................................................................................3
Internal environment..............................................................................................................3
External environment.............................................................................................................7
Macro environment............................................................................................................7
Industry environment.......................................................................................................10
Recommendations................................................................................................................12
Recommendation 1...........................................................................................................12
Recommendation 2...........................................................................................................12
Recommendation 3...........................................................................................................12
Recommendation 4...........................................................................................................12
Recommendation 5...........................................................................................................13
Recommendation 6...........................................................................................................13
Recommendation 7...........................................................................................................13
Recommendation 8...........................................................................................................14
Conclusion................................................................................................................................14
Bibliography.............................................................................................................................16

COMPETITIVE STRATEGY 3
Introduction
The resolution of the report is to emphasize the focus on the business plan of Domino's pizza
(Australian operation). Domino’s pizza is a global pizza delivery organization whose
headquarters are in Ann Arbor, Michigan, United States. Domino’s pizza has the unique chief
franchise privileges for their brand and their network in France, Australia, and the
Netherlands.
Management of Domino’s organization has communicated locally, nationally and
internationally. Domino’s pizza consists of the detailed store development program which
able to find out the geographical area in which new stores are to be developed. The report in
2003 of future foundation shows that adults in the UK eat out /take-away approx. 70 times in
a year. This reflects that there is no need for many shops in one particular area. Domino’s
pizza emphasis more on the phone-call system (Kollewe, 2016).
This report will emphasis on the theoretical concept of the Dominos company in relation to
their environment i.e. internal environment as well as external environment. It will also focus
on the organization resource and capabilities, various concepts such as VRIN /VRIO.
Domino’s- Business Strategy
Internal environment
If an association want to achieve a competitive benefit, then the organization should utilize
their assets, capabilities and core capabilities to its advantages. One of the examples of this is
Domino’s pizza; Domino’s pizza has used their resources and their efforts in such a way that
they now have a tag that Domino's has received it a competitive gain in the market. Dominos
has well established a developed technology platform that helps them in making sales to its
customer’s worldwide. According to the recent information, their online sales hit a 60% mark

COMPETITIVE STRATEGY 4
of their total deals. Among Domino’s core capabilities are abilities to make new products,
their manufacture. This is confirmed through enlarged shops globally by 43%. Dominos with
their online discount coupons and on time delivery able to achieve the high market in this
competitive world in most of the countries (Jolly, 2019).
Internal analysis of Domino's pizza SWOT (Syed, 2016):
Strengths
• Innovative
• Powerful global brand
• Strong Distribution Centre
• Strong social media presence.
Weakness
• Fall in the domestic profits
• Fall in the consumer’s loyalty
• The menu card does not worry about health-conscious persons.
• Bad goodwill in the marketplace.
Opportunities
• Increase in the international presence
• Restructured pizza recipes
• Efficient ordering process

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“Surpassed $1 billion in digital sales in one year in the US”
Threats
• The upsurge in the prices:
- Commodities
- Transportations
• Obesity charges on the rise
• The task to meet customer’s beliefs
The value chain of Domino's pizza includes a mixture of prime as well as secondary
functions (Samarakoon, 2018).
Primary activities comprise operation, marketing and sales, inbound activities, and outbound
logistics; whereas, secondary activities comprises human resource, the technology of the
organization. Marketing plan of the Domino’s has few new ideas for example, it has a policy
of supplying the pizza in 30 minutes otherwise pizza will be supplied free of cost. This policy
results in increasing the sales figure of the organization.
The company also provides various type of services to the customer’s, for example, the
company has payment policy via credit card as well as gift card option is also available which
help the consumers to gift anyone with pizzas. Their structure provides the convinced to the
public at large. Overall, we can state that Domino’s has an outstanding brand when associated
with its participants. Customer’s relation shows a vital role in the growth of the organization
in the long term (Watts, 2018).
VIRO concept is a resource based strategic analysis tool. Leaders in pizza world such as
Domino's pizza can use VRIN concept to achieve a more competitive advantage by better

COMPETITIVE STRATEGY 6
understanding the role of resources. Resource-based strategic is one of the strategies that is
based on the assumption that strategic resource can provide an opportunity to the Domino's
pizza to build a sustainable competitive benefit over its rival in the marketplace. This
sustainable competitive advantage supports the Domino’s pizza to a treaty with the
competitors and earns above-average profits in the organization. VRIO is an operative
instrument in analyzing the interior atmosphere of the Domino’s. If the company importance
is extraordinary and hard to find in the marketplace then the organization has a good modest
benefit whereas, if company value is less then there is a competitive disadvantage (Jham &
Tandon, 2012).
Components of VRIO:
Valuable: Domino’s has goodwill and unique brand value which is the only thing can be
considered as the strength of the company. Domino's consist of the second rank in the pizza
chain brand which functions in the about 65 nations. The reputation of the Domino’s has led
them to spot its existence worldwide. The license policy of the organization has numerous
hundreds of openings worldwide (Business Analyst learnings, 2017).
Rarity: Domino’s follow their personal value chain structure and possess plans which is very
uncommon in the organization environment. For example, Domino’s has unique plans by
operating the technology by joining up with AT & T network which assist the organization in
recognizing the receiving calls that track the discourse of the close openings which allows the
faster supply of pizza. This tracing process takes approx. 7-11 seconds.
Imitable: It will be very expensive to copy the structure of the Domino's organization has its
own structure which supports in achieving effective administration of the organization
starting from the manufacturer to logistics separation of the organization. The supply chain of

COMPETITIVE STRATEGY 7
the Domino’s has framed in such a way that it helps in the deployment of the assets to the
extreme possible which will result in more cost if some other organization copy.
Organization: Domino’s efficiently and efficiently utilized the asset from the raw material to
end well. Domino's always relied on the honesty and has trust in the employees which result
in a positive effect in the goodwill of the company to the shareholder and the investors.
Another extension of VRIO analysis is VRIN where “N” stands out for the non-substantially.
A resource is not sustainable if the competitor cannot able to find out the alternative ways to
gain the benefits that a resource provides. An ideal source which cannot be replaced by any
other resource is termed as a non-sustainable resource (Khurana, 2014).
External environment
Macro environment
Rising of the inflation and downturn in the world economy which is being skilled in the
present, are the best joint factors that can disturb the organization. Equally, factors which
affect the other company has also affected the Domino’s UK, the most prominent distribution
franchise (BT Bureau, 2017).
The two macro-environment factors are:
The political environment in Australia
In the recent period, Australia emerged as a smart investment goal because of a party-
political framework that has been assessed as being profoundly successful in reacting to
monetary difficulties. The versatility of Australian administration arrangement to financial
changes has been positioned in the main two nations in the area (Domino's, 2019).
Economical environmental in Australia

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Australian economies are one of the largest economies in the worldwide. Australia is the 19th
biggest importer as well as exporter.
The key contribution of the Australian economy with 68% of GDP is from the service sector.
Economic growth mainly depends on the agricultural and mining subdivision (Taylor, 2016).
Unemployment and interest rate
The jobless rate in Australia changed between 5% to 5.4% from 2010 to 2012; this is an
acceptable indicator of the development. As the usual rate of unemployment is 5%
particularly in this present situation where the rate of unemployment is reaching 7.8% &
11.8% in US & Europe respectively. The interest rate in Australia reflects the decrease in
during the year 2011-2012; this result that the economy encourages capital market and
investment (Trade Economic, 2019)
Evaluation of macroeconomic on Domino's pizza
Through the overhead analysis, this can be specified that the Australian economy is a very
positive effect on the organization, Domino’s is not the only exception.
In addition to this, the low-interest rate and an unemployment rate is a good indicator of
Domino’s because it can have easy entree to the monetary and human result-races which are
the main of the business (Liao, 2014).
The changes in the factor of a macro-environmental factor not only impact on the Domino’s
pizza but also consumer services.
Pestle Analysis
Political

COMPETITIVE STRATEGY 9
Political factors include the controlling frame functioning in a legal system which posses to
disturb the business in various methods. There are no such issues in the UK which might
affect the business of Domino’s. While the factors like affluence and assessment apply on the
organization should be followed nicely. The beverage and food organization of UK have
increased the process due to introduced of Goods and service tax (Amoafo, 2015).
Economic
The demand of the person directly linked to their income. If the GDP of the nation is good
then it will overall result in an increase in demand for food & beverage. The customers of
Domino’s pizza do not want to go out. They just command and take away. In the UK, the
ingesting capacity of the customer is not restricted. The report of the UK published by the
assembly published that there is an upsurge in the customers spending.
Social
Domino's pizza ought to get important info from the independent market not just by the
single clients of the company. The statistical surveying ought to be complete before arriving
in the marketplace, so to set up the protests that fit in with open arrangements, countless
customs, and morals of the common public. The social abilities consistently change after
some time.
Technological
Domino's pizza ought to get the applicable info from the independent marketplace not just by
the single clients of the association. The helping tools for Domino's pizza are commercial on
telephone selling, Google promotions, Facebook and TV ads, and so on. The advance union
in the task of Domino's pizza likes to upsurge the value of the article. The overseeing data

COMPETITIVE STRATEGY 10
framework (MIS) in Domino's pizza gathers material from the clients, day by day
connections and basic leadership (Haseeb, 2017).
Environmental
Effectively environment should be was known by the Domino’s pizza that oversees the
market actions in every marketplace. The main factors of environmentally friendly changes
are the change in the climate and the shortage of water, as well as changes in the prices of the
commodities. The clients who live in the U.K for the most part they give request drove on the
web and in the most the recent year 2012, the deals were expanded by 5%.
Legal
Domino’s pizza is the food organization, so it must carefully track the rules and regulations
as well as events. So of the laws which should be surveyed are labor and employment laws,
business registration, and it must be specialized by the ISO regarding the value (Meiners, et
al., 2011).
Industry environment
Industry environment brand identification creates barriers to force the entrance to devote
heavily to overwhelmed customer faithfulness. Customer’s service, being first in the
corporate world and the item changes are the issues for the fostering brand review.
Domino’s is a reputed company for 44 years. They are known by their slogan, “get the door.
It is Domino’s” (Domino's, 2019).
Porter’ Five Forces
The Porter's five forces help in identification the types of an organization that influences the
competitions. It helps in determining the profitability of the business.

COMPETITIVE STRATEGY 11
Competitive Rivalry
Competitive competition defines the economical struggle among the marketplace share of the
industry. In an organization, there are many no. of competitors creating the same items due to
which the development rate of the Domino’s is decreasing as there is much other business
like Pizza Hut in the economy. In the food industry, the members have the same mindset in
terms of dimension, power, and cost of origin. Exit fences are more in the industry. This
result in high rivalry among firms in the industry (Bidgoli, 2014).
Suppliers
The negotiating intensity of dealers in Domino's pizza is little since the items providing to the
Domino's pizza need huge size yet not separated. There are many alternates for the provider
items in the business. There is a high varying outlay starting with one worker then onto the
following and make colossal welfares out of industry buying keeping rates that are more
expensive in the business. In Domino's pizza, there is no difficultity for workers as of
recently (Bidgoli, 2014).
Buyers
Buyers cost of substituting to competitive pizza is approx. zero. As the buyers of the
Domino’s pizza can prefer its substitute like microwave pizza. The purchasers will have
complete data about the items and the marketplace. The clients mostly center around the
nature of the item. The clients bartering control is probably going to be small (Bidgoli, 2017).
Substitutes
Substitute items are the foodstuffs which satisfy the consumer’s needs efficiently. Domino’s
pizza additional is easily available in the market. More substitute present in the market results
in a threat to the company, as it results in profit reduction (Bidgoli, 2017).