Domino's Pizza: Business Models, Innovation, and Competitive Edge

This essay explores the business models employed by companies to achieve a competitive advantage, focusing on Domino's Pizza as a case study. It highlights the importance and benefits of a robust business model, particularly in a competitive environment. The analysis covers Domino's Pizz...Read More

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
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INNOVATION AND BUSINESS DEVELOPMENT
Introduction
The purpose of the essay is to understand the business models that companies apply
while trying to gain a competitive advantage in the business world. The importance and
benefits of the business model are provided in the essay along with the application of it in a
competitive environment such as Domino's Pizza. Domino's Pizza is the largest pizza
restaurant established in Australia in 1983. It has over 1500 locations all across Australasia,
Europe and the USA (Dominos.com.au, 2018). It achieved a distinct mark of becoming the
first Austrian pizza company to become listed in the public. The essay applies the effects of a
business model in the company and the influence of smart connected products. The business
model framework is analysed and opportunities that Domino’s can receive with the
application of the model is analysed.
Evaluation of business model on the success of Domino’s Pizza
According to Chesbrough (2010), a business model can be method every operation
that takes place in a business is identified. The capabilities and resources of a particular
organisation are analysed with the help of the business model along with the success that the
companies may gain. In the case of Domino’s Pizza, the business model can be used to
identify the success it may get in the business market of Australia. It has been seen that the
business model used by Domino’s Pizza can help the company earn more revenue. This can
help Domino’s Pizza to continue its expansion in the market and ensure that innovative
techniques are applied. Bernstein (2015) stated that business model could help in analysing
the logistics department of a company. Domino's Pizza can apply a stable business model so
that it can earn profit keeping in mind the logistics factor.
In this case, it can be argued that every business organisation needs to undergo a
disruptive business model so that the involvement of technology can be utilised. In the
modern world, this is one of the key factors as technology is required in the modern world for

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success. However, the focus of Domino’s Pizza has been to satisfy customers rather than
making a profit. Its motto is simple in gaining profit for the improvement of the business.
Vargo, Wieland and Akaka (2015) are of the opinion that disruptive innovation can help
companies identify the threats by undergoing a total change in the existing business of a
company.
Analysis of the modern day business model provides doubt among the people as the
past manner of analysing competitiveness and stability is different from the existing source.
According to McLuskie (2017), the external and internal business market influences
innovation. Domino's Pizza can be influenced by these factors and ensure that the changes
made in the company are based on the proper analysis of the environment and are aligned
with the business model suitable for the success of the company. The biggest concern of the
company needs to be the effect of technology in the market along with the manner based on
which Domino’s Pizza can combat it (Drucker, 2014).
One way of combating this challenge is the application of smart connected products.
In the words of de Jong and van Dijk (2015), Dominos’s Pizza can ensure that the business
model used by the company can be made flexible as well as stable. This is mainly due to the
fact that the company lacks stability in the application of a proper business model. The
recognisable factors of the company can improve due to the flexibility in the market and the
streamlined manner by which Domino’s Pizza can remain advanced and innovated in the
market. Thus, in the words of Clark, Osterwalder and Pigneur (2012) business model can
help in providing opportunities for increasing the revenue of the company.
With the opportunities presented by the business model, the threats involved in the
application of the connected product model can also be analysed. As observed by Porter and
Heppelmann (2014) the biggest threat is involved in investing in the security of the products.

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For Domino’s Pizza, it is necessary that the company gain an idea of the security that it may
be able to provide to the employees and the customers. Understanding the demands of the
employees can be another threat factor that Domino's Pizza needs to deal with. Along with
this inventor, management is another factor that needs to be considered by Domino's Pizza, to
ensure that proper production and management of resources can be obtained.
After the analysis of the opportunities and threats provided by the application of
innovation, it can be said that a proper business model can be applied for identifying the
effectiveness of Domino's Pizza. In this regard, Osterwalder and Pigneur (2010) proposed a
business model canvas that highlights certain key areas that every company need to analyse.
The managerial decisions regarding the improvement of companies can be based on the
application and analysis of this model. Hence, it is necessary for Domino’s Pizza to apply this
particular business model so that it can gain competitiveness over any new competitor in the
Australian market (West et al., 2014)
The analysis of the business model canvas of Dominos’ Pizza in Australia highlights
the effectiveness of value proposition. According to Porter and Heppelmann (2015), value
proposition can help a company to grow in the business market and ensure that the
satisfaction of the customers is maintained. Thus, Domino's Pizza can maintain both the
mission it has and ensures that it continues to be the number of one Pizza delivery company
in Australia. The company needs to consider the roles of the customers for making a profit
and ensure that stability is maintained in the financial matters. Johnson, Christensen and
Kagermann (2008) are that profitability of Dominos’ Pizza can be analysed and evaluated
with the application of business model canvas.
One of the traditional manners by which customers can provide value to a company is
by providing feedback about the products and services. It is for this reason that the customers

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are considered as one of the main stakeholders of the companies (Abraham, 2013). In the
case of Domino’s Pizza, one of the important things that the company need to keep in mind
that most of the people in Australia are conscious of their health. Hence, it is necessary that
Domino’s Pizza produce the food items keeping in mind the health and wellbeing of the
people.
As observed by Christensen, Raynor and McDonald (2016) one of the advantages of
Domino’s Pizza is the fact that it has various talented employees that can help the company to
progress. Providing high quality of service to the customers is one of the most important
aspects that drive the satisfaction factor. Hence, the fact that Domino’s Pizza is located in
places that are easily accessible by customers helps in the interaction with the customers and
the timely delivery of products. De Reuver, Bouwman and Haaker (2013) is of the opinion
that Domino’s Pizza has a proper set of inventories that can help the company to maintain the
overall cost of the company. This is important to continue and expand the business in the
global context and ensure that customers can get the food items of Domino’s Pizza from
anywhere in the country.
Hence, the analysis provides an idea about the application of the business model and
the manner in which Domino’s Pizza can apply it in the company. It has been seen that the
company applies the model to achieve its goals and objectives. As stated by Veit et al. (2014)
achieving goals and objectives need to be the primary aim of a company. Accolades can be
provided to Domino’s Pizza to maintain the existing business model and develop a
framework that can help in achieving the overall goals of the company.
Another important factor that can be derived from the application of the business
model is that it helps in determining the profit of the company (Chesbrough, Vanhaverbeke &
West, 2014). The managers of Domino’s Pizza are of the opinion that increased satisfaction

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level of the customers can provide the inflow of profit in the company. At the same time, the
strategies adopted by the competitors can also be determined by the application of the
business model canvas. This can help Domino’s Pizza to target markets and develop a proper
business model helpful in reaching out to the customers. West and Bogers (2014) are of the
opinion that identifying the business opportunities and target market can help Domino’s Pizza
to continue its dominance in the market.
Conclusion
The business model is important as it helps in analysing the importance and system
process of a company. For a company like Domino's Pizza, the focus of the company is more
in improving the satisfaction level of the customers. However, with the application of the
model, the amount of revenue generated by the company can be analysed easily. This
provides an opportunity for Domino’s Pizza to maintain its business in the competitive world
and ensure that it is dependent on innovation and stability.

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