Strategic Analysis of Domino's Pizza: BMA6104 Organization Strategy

This report provides a comprehensive strategic analysis of Domino's Pizza, examining its external environment through PESTEL analysis, assessing its internal situation using a SWOT framework, and evaluating its competitive landscape using Porter's Five Forces. The analysis explores the challenges and opportunities Domino's faces in the UK and international markets, considering political, economic, social, technological, environmental, and legal factors. Furthermore, the report assesses Domino's internal resources and capabilities, identifying strengths, weaknesses, opportunities, and threats. The competitive environment is evaluated, considering the bargaining power of suppliers and buyers, the threat of new entrants and substitute products, and the intensity of competitive rivalry. Finally, the report proposes strategic options for future growth, utilizing the Ansoff Matrix to explore market penetration, market development, product development, and diversification strategies. The report concludes by highlighting the importance of effective strategic planning for achieving organizational goals and objectives.

Organization strategy

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
P1 Examine the key challenges confronted by organization in the external environment of
UK?........................................................................................................................................3
P2 Assess the internal business situation and resources of organization at UK?...................4
P3 Assess the competitive environments of the company in the UK and International
market?...................................................................................................................................5
P4 What strategic options and directions could the company pursue for the future growth
both in the UK and international Market...............................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................8
Books and Journals................................................................................................................8

INTRODUCTION
Organization strategy is considered as a process in which the business firm maintains
effective tactics and approach for accomplishing goal and objective in stipulated period of
time. This report is carried upon Domino’s Pizza. It is the American international pizza
chains of restaurants which is founded in the year of 190 by James Monaghan. In this report,
the PESTLE as well as SWOT analysis is a framework which is used for assessing internal ad
external environment. In addition to this, porter five force models is used for achieving
competitive advantage over rival firm at marketplace. And they also used Ansoff matrix for
future growth of company (Abbott, 2016).
MAIN BODY
P1 Examine the key challenges confronted by organization in the external environment of
UK?
For identifying the key challenges which is confronted by business organization for
achieving goal and objective in stipulated time period. In addition to this, PESTEL analysis
is used by manager of Domino’s Pizza for assessing external environment which imposes
direct impact on growth and success of organization which is going to be mentioned below:
Political factor: The political factor includes rules, laws. Regulation, bureaucracy
and many more which imposes direct influences on profitability of company. Due to stable
political condition of UK, it enforces favorable impact on success and growth of company.
They do not change their policies frequently; it is the positive sign for organization. On the
other hand, Due to increase in corruption especially in case of consumer service industry then
it negatively affects the company at marketplace (Bryan, 2017).
Economic factor: It includes factors such as exchange rate, interest rate,
unemployment rate and so on. Due to stability in exchange rate, the Domino’s Pizza does not
change their rules and regulation frequently thus it imposes positive influences on efficiency
as well as profitability of company at marketplace. Whereas. Due to enhance in labor cost, it
increases the cost for company which negative affect the organization during the period of
time.

Social factor: Social factor involves age, lifestyle, market trends as well as taste and
preferences of customer which imposes both positive and negative impact on organization.
Due to increase in awareness of person towards health, they prefer healthy food, thus it
decreases sales as well as profit of company. On the other hand, the manager of Domino’s
pizza focuses on providing high quality food to its customer at affordable cost thus it
enhances sales of company.
Technological factor: Technology plays an important role for success and growth of
company. Recently, the organization named as Domino’s Pizza implement advanced
technology in order to provide unique products and services to its customer, it helps in
gaining competitive advantage over rival firm at marketplace. Whereas, due to execution of
latest technology, it adds extra cost for company, it erodes sales in future time period.
Environmental factor: These factors involve weather, climatic condition, laws as
well as legislations and any more. In order to increase in air and water pollution in restaurant
industry, so it harms the environment which negatively affects growth and development of
organization. The manager of Domino’s Pizza use recycling process for waste management,
it helps in boosting productivity as well as profitability level of business organization
(Gębczyńska, 2016).
Environmental factor: These factors involve weather, climatic condition, laws as
well as legislations and any more. In order to increase in air and water pollution in restaurant
industry, so it harms the environment which negatively affects growth and development of
organization. The manager of Domino’s Pizza use recycling process for waste management,
it helps in boosting productivity as well as profitability level of business organization
Legal factor: Legal factor involves discrimination, employment and consumer
protection law. It is important for company to consider laws and regulation for success and
growth of company. And also focuses on providing safety to its customer in order to gain
competitive advantage at marketplace. Otherwise, if company does not follow policies in an
effective manner, it erodes profit and sales within organization (Martyn, Sweeney and Curtis,
2016). Therefore, it is necessary for Domino’s Pizza to assess external environment which
imposes direct impact on success and growth of business organization.

P2 Assess the internal business situation and resources of organization at UK?
In order to assess internal business situation, it is necessary to adopted SWOT
analysis. The manager of Domino’s pizza adopted SWOT framework in order to assess
internal environment of business firm. In addition to this, it is used for identifying strength,
opportunities, threat as well as weaknesses which is going to be mentioned below:
STRENGTH WEAKNESSES
 Domino’s Pizza is second biggest
brand across the world. They achieve
leading position which helps them in
increasing sales as well as
profitability level in future time
period.
 The manager emphasized on
providing superior quality products
and services to its customer at
affordable cost. It helps them in
retaining customer for a longer period
of time (Micheli and Mura, 2017).
 Due to effective supply chain
management, it increases brand value
and reputation of company in front of
customer.
 Herein, in comparison of Pizza hut,
the number of store of Domino’s
Pizza is less can be considered as a
weakness for organization
 Due to increase in franchised outlet, it
is not possible for company to deal
with quality in an effective manner.
And also, it arises operational issues
are the weaknesses for company.
 The implementation of advanced
technology adds extra cost for
company is the weakness for business
organization.
OPPORTUNITIES THREAT
 Due to expansion of firm across the
world, it increases sales as well as
profitability level of business firm at
marketplace.
 The manager of Domino’s Pizza offer
innovative products as per the need
and wants of consumer. It increases
reputation and goodwill of company
at marketplace.
 Due to increase in competition level
from Pizza hut, it is necessary for
company to satisfy the need and
wants of company. Otherwise, it
affects sales and profit in negative
manner.
 Due to rise in raw material and labor
cost is considered as a major threat
for Domino’s Pizza.

P3 Assess the competitive environments of the company in the UK and International market?
Domino’s pizza adopt Porter’s five force model that helps them in gaining
competitive advantage over rival firm at marketplace which is going to be mentioned below:
Threat of New Entrants: The threat of new entrants is very low in this sector. It is
not possible for new firm to take entrance because it is very expensive. The Domino’s Pizza
is operated at large scale (Jaoua, 2016). Therefore, it is not possible for new firm to take entry
in this sector. In addition to this, they offer differentiated products that help in gaining
competitive advantage over rival firm at marketplace.
Bargaining power of supplier: There are large numbers of supplier who deliver the
products n comparison to buyer. Therefore, it is crucial for organization to provide unique
and differentiate products as well as services to its customer at affordable cost in order to gain
profit and sales in future period of time.
Bargaining power of Buyer: The supplier is less in the sector in which Domino’s
pizza operates. Therefore, it has been stated that the buyer have a limited choice in which
they choose. In addition to this, the manager of company provides unique and specific
products as well as services to its customer that reduces the chances of switching the brand by
buyer in the market. It increases sales as well as profitability level in future period of time.
And also, it enhanced brand value and reputation of organization in front of customer at
marketplace (Jaoua, 2018).
Threat of Substitute products: The substitute products in which Domino’s Pizza
operates is less in this industry. There are few competitive firm provides superior quality
products at high cost. On the other hand, Domino’s pizza offer unique products to its buyer at
affordable cost thus the buyer do not switch their brand to competitive firm. Therefore, it is
important to gain competitive advantage over rival firm at marketplace.
Competitive rivalry: There is little number of rival firms which operates in this
industry. And, Domino’s Pizza has achieved leading position in the market which helps in
gaining competitive benefits over rival firm at marketplace. It increases sales and profit in
upcoming time period. And they offer products as per the need and wants of consumer in
order to satisfying them. The main motive of company is to earn more and more profit for
expanding business at global level.

From the above mentioned strategic, it is necessary for organization to gain
competitive advantage over rival firm at marketplace. It also enhances sales and profit in
future period of time.
P4 What strategic options and directions could the company pursue for the future growth both
in the UK and international Market?
Strategic planning is important for success and growth of organization rapidly.
Through effective planning, it is easy for firm to grab opportunities in the market (Johnson,
2016). Therefore, the Domino’s Pizza adopted Ansoff matrix for growth of organization in
future time period. Apart from this, Ansoff matrix contains four strategies which are going to
be mentioned below:
Market penetration: In this stage, the existing products are sold in available market.
Herein, the manager focuses on providing high quality pizza, non veg pizza, pizza mania as
well as other beverages to its customer for increasing sales and profit t marketplace. Their
main aim is to attract the customer by offering unique products to its buyer. They offer their
services as per the need of buyer in order to satisfy them (Ligonie, 2018).
Market development: In this level, the existing products are sold in new market. It is
very risky to introduce products at new market in order to increase sales as well as
profitability level in future period of time. Therefore, it has been stated that, it is risky to
introduce available products in new market but helps in achieving higher return.
Product development: In this strategy, the manager sold new products in existing
market. It is very difficult for firm to introduce new products in market but also provide
higher rate of return. They provide the healthy products such as salads, vegetable pizza in
order to gain more profit. They provide health consciousness products to its customer in order
to satisfy their need and wants at marketplace.
Diversification: In this level, the supervisory team of Domino’s Pizza emphasized on
providing innovative products in the market. It has been analyzed that it is very risk stage in
comparison to other strategies which is mentioned above. But, they adopt promotional
technique such as advertising, publicity as well as sales promotion in order to attract large
number of customer at marketplace. It increases sales and profit of business firm in upcoming
period of time. In addition to this, it also builds positive brand image and reputation of
Domino’s Pizza in front of customer (Martí, 2017).

CONCLUSION
From the above mentioned report, it has been analyzed that it is necessary for
organization to make effective strategy for achieving goal and objective in future period of
time. In addition to this, it is important to assess external environmental factor in order to
make strategy in an appropriate manner. Therefore, the organization adopts PESTEL and
SWOT Analysis for assessing internal and external environment of firm. Apart from this,
they use porters five force model for gaining competitive advantage over rival firm at
marketplace. At last, Ansoff matrix is used for increasing success and growth of organization
in future t period.

REFERENCES
Books and Journals
Abbott, D., 2016. 19 Utilising Bank Loans as an Organisational Strategy: a Case Study of the
Annapurna Mahila. Development Perspectives for the 1990s, p.289.
Bryan-Kjær, K., 2017. Sustainability in the hierarchy: how corporate sustainability is
anchored in the organisational structure. International Journal of Corporate Strategy and
Social Responsibility, 1(2), pp.179-192.
Gębczyńska, A., 2016. Strategy implementation efficiency on the process level. Business
Process Management Journal.
Jaoua, F., 2016. Place of middle managers on the relationship between creativity in strategy
and organisational performance. International Journal of Management and Decision
Making, 15(2), pp.113-133.
Jaoua, F., 2018. Impact of strategic roles of middle managers on the relationship between
successful strategy implementation and organisational performance. International Journal of
Business Performance Management, 19(4), pp.476-499.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Ligonie, M., 2018. The “forced performativity” of a strategy concept: Exploring how shared
value shaped a gambling company's strategy. Long Range Planning, 51(3), pp.463-479.
Martí, J.M.G., 2017. An analysis of the business strategy, performance measures and
organisational performance of Spanish firms during the financial crisis (2008-
2010). International Journal of Applied Management Science, 9(3), pp.203-233.
Martyn, P., Sweeney, B. and Curtis, E., 2016. Strategy and control: 25 years of empirical use
of Simons’ levers of control framework. Journal of Accounting & Organizational Change.
Micheli, P. and Mura, M., 2017. Executing strategy through comprehensive performance
measurement systems. International Journal of Operations & Production Management.