Innovation and Business Development: Domino's Pizza Case Study

This essay examines Domino's Pizza's successful business development and innovation strategies, focusing on the application of the business model canvas. It highlights the company's ability to maintain its market dominance in Australia through continuous innovation, including the adoption of smart connected products and a disruptive business model. The analysis emphasizes the importance of understanding both internal and external environments, particularly customer feedback, and addresses potential threats such as security and employee loyalty. By leveraging its value proposition, revenue streams, and a talented workforce, Domino's Pizza sustains its competitiveness and profitability. The essay concludes that embracing the business model canvas and disruptive innovation is crucial for Domino's Pizza to navigate the dynamic Australian market and achieve its goals of customer satisfaction and financial stability. Desklib provides access to similar solved assignments and study resources for students.

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
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Introduction
Innovation is necessary so that a company may succeed in the competing business
model. The effective use of a proper and suitable business model can help an organisation to
remain competitive and improve on its current position (Chesbrough, 2010). The current
essay focuses on the importance of innovation and the effective utilisation of the business
model canvas. For this reason, the essay focuses on Domino's Pizza and the manner in which
it has managed to remain the top brand of the pizza chain in Australia. Domino's Pizza was
set up in Queensland, Australia in the year 1983 and has managed to maintain its dominance
in the business market of Australia. It has over 1900 stores in the world and more than 1500
stores across the world (Dominos.com.au, 2018). The essay focuses on the manner in which
Domino’s Pizza can utilise the business model canvas and the highlights its effectiveness for
its success.
Evaluation of business model on the company
The concept of the business model is considered as an important tool by the
application of which an organisation can manage to develop itself. It helps in analysing the
main capabilities of an organisation. In the words of Tukker et al. (2017), the business model
can help in identifying the manner in which organisations can gain revenue. A company like
Domino’s Pizza can benefit with the application of such a model, as it needs to cope up with
the changes that take place in the competing business world. The competition that exists in
the market can be analysed and the manner in which Domino’s Pizza can operate its
functions in the market can be improved. As observed by Kogan et al. (2017) Domino’s Pizza
does not possess a fixed business model that can help in the improvement of the company.
In this regard, it can be said that every business organisation need to undertake a
disruptive business model that can help in the high involvement in the modern business
world. One of the innovations that have occurred in the business world is the improvement

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and introduction of technologies (Adams et al., 2016). Therefore, to gain profit from the
existing competition in the market, Domino's Pizza needs to adopt a disruptive business
model so that it can gain profit and meet the requirements of the customers.
Organisations in the modern world do not have a stable business model and because
of this most companies, big or small loose out against the competitors. To understand the
impact of business in the modern world, it is necessary that the internal and external
environment of the business market be considered. According to Anderson, Potočnik and
Zhou (2014), in the case of Domino’s Pizza the external environment are the customers of
Australia as based on the responses of the customers; the company can formulate a proper
business model.
It can be said that Domino’s Pizza can gain opportunities in the business with the
application of smart connected products. The sustainability of the business can be maintained
by properly analysing the factors that contribute to the effectiveness of the business models.
One of the advantages that Domino’s Pizza can have in the business market is the fact that it
can be flexible as well as have a streamlined operation in the business market (Johnson,
Christensen & Kagermann, 2008). At the same time, Domino’s Pizza can make use of a more
innovative method and apply smart connected products for the company.
At the same time, it needs to be kept in mind that Domino's Pizza needs to make
considerable research about the manner in which it can apply the business model canvas. The
research can help Domino’s Pizza to understand the threats that exist with the application of
the particular model. Porter and Heppelmann (2014) stated that one of the biggest threats that
Domino’s Pizza can encounter is the security. Every investment of the company that is made
needs to be analysed so that the threats can be mitigated easily. At the same time, maintaining
the loyalty of the employees can be challenge particular if there is less job security in the

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company. In the words of Porter and Heppelmann (2015), the security of job and
organisations is one of the major factors that can be considered by the employees. Domino’s
Pizza also needs to analyse its inventories as it is an important factor for the development of
the company.
The managers of Domino’s Pizza need to analyse these techniques and ensure that a
backup is maintained that can help the company mitigate any type of risk that may hinder its
progress (Joyce & Paquin, 2016). In this regard, Domino’s Pizza can apply a proper and
detailed business model canvas. The business model canvas provides a detailed
understanding of the type of strategies and operations that are conducted by an organisation.
In the case of Domino’s Pizza, the company can apply the business model canvas proposed
by Osterwalder and Pigneur (2010). The company can try to develop a proper business model
that can help it to maintain its status in the competitive business of Australia.
The analysis has shown that the business model of Domino’s Pizza can be related to
the value proposition factor. The evaluation of the value proposition factors can help
Domino's Pizza, to get more growth in the business market of both Australia and abroad. At
the same time, the company also takes the satisfaction of the customers into consideration.
Bain and Kleinknecht (2016) have observed that Domino's Pizza have a rich revenue
streamline and therefore maintains the proper stability of matters related to the finances of the
company.
One of the important factors that Domino’s Pizza need to consider is the responses of
the customers about the type of products that it is manufacturing. The responses of the
customers can be collected by using a survey method and feedbacks can be in the form of
products that are both new and existing. Kleinknecht (2016) stated that Domino’s Pizza has
seen growth with the application of smart connected products. The fact that the company

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have innovated new products and new systems of providing customer satisfaction have been
well received in the markets of Australia. Despite this Zott, Amit and Massa (2011) have
warned that Domino's Pizza needs to keep in mind the demands of the target market.
One of the advantages that Domino’s Pizza can receive is from the talented pool of
employees that it recruits. This can provide the company with an edge over the rivals and
help it to maintain competitiveness in the market. Among the marketing mix elements,
Domino’s maintains the placing of the stores at convenient locations. According to Lusch and
Nambisan (2015), innovation in services of a company can help it to reach out to customers.
In the case of Domino’s Pizza, the services provided by the company are an opportunity to
interact with the customers and identify the requirements. The online and home services
provided by the company provide Domino’s Pizza with an additional advantage of being
competitive in the age of technology. The GPS system for locating the customers can help
Domino's Pizza to gather information about the customers and their preferences.
The aim of Domino’s Pizza is to satisfy the customers and maintain the profitability
of the company (Dominos.com.au, 2018). The business model of Domino's Pizza can help the
company to attain its goals. Thus, the business model adopted by Domino's Pizza needs to be
aligned with the company in a manner that it provides Domino's Pizza with an advantage of
maintaining stability in the market. As observed by de Jong and van Dijk (2015) maintaining
a business process can help Domino’s Pizza to identify a stable approach that can be useful in
analysing the profitability of the company.
Van Oort (2017) is of the opinion that gaining profit is important for the survival of a
business, particularly of a private sector. In the case of Domino's Pizza, it is the first pizza
chain restaurant to have received a public status in Australia. Hence, the responsibilities of
the company grow beyond profit making. Sustainability and corporate social responsibility of

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Domino’s Pizza can also help it to gain profit by maintaining its goals of satisfying
customers. Vargo, Wieland and Akaka (2015) stated that Domino’s Pizza could maintain a
revenue model that can help the company to sell more products to the customers and provide
a convenient target market.
Conclusion
After the analysis, it can be concluded that business model is essential for influencing
the operations and system processes. Organisations need to ensure that the revenue factor of
the business model can help it to estimate the type of work progress that is carried on in the
organisation. In the case of Domino’s Pizza, maintaining the loyalty of the company is
important and it is necessary that the company attain its goals. Therefore, for existing in the
business market of Australia, Domino’s Pizza can adopt the business model canvas and
disruptive innovation so that total changes in business can help the company.

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