Analyzing Business Model Innovation and Development at Domino's Pizza

This essay analyzes the existing literature to identify relevant business models and disruptions used in modern business, focusing on Domino's Pizza in Australia. It emphasizes the importance of business models in today's business landscape and examines the influence of smart connected products on Domino's business strategies. The essay explores the application of a business model framework, highlighting the opportunities and threats faced by Domino's during implementation. It concludes by discussing the future of Domino's Pizza in Australia, emphasizing that business model innovation is crucial for maintaining customer loyalty, stability, and profitability in the competitive fast-food industry. The analysis also touches on the company's CSR activities, technological advancements like GPS tracking, and employee training as contributing factors to its success.

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
Name of Student
Name of University
Author Note

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INNOVATION AND BUSINESS DEVELOPMENT
Introduction
The essay helps in analysing the literature that exists in identifying relevant business
model and disruption used for modern business. The essay helps in identifying the
importance of business model in the modern business scenario. The essay focuses on
Domino’s Pizza and describes the influence of smart connected products with that of the
business models. It analyses the business model framework and focuses on illustrating the
findings of the study. The opportunities and threats received by Domino’s over the
implementation of the business model. The future of Domino’s Pizza in Australia is
highlighted with the help of the business model. Domino's is the largest pizza chain in
Australia in terms of a franchise, stock number and network sales. It has over 1900 stores and
in May 2005, it became the first publicly listed pizza company in Australia
(Dominos.com.au, 2018).
Application of business model on Domino’s Pizza
The business model is considered as a tool by which operations in business can be
recognised along with the key internal and external capabilities. The resources that exist in a
company are judged with the help of the business model. According to Dudin et al. (2015),
the business model can help in analysing the revenue as well as the profit an organisation can
earn. The business model helps in depicting the competitive positioning of an organisation
and provides an assessment of the value of logistics. In the case of Domino’s, due to the
impact of modern business requirements, the application of the business model has changed
considerably. The company does not have any fixed business model and therefore it finds it
difficult to operate in the competing market of Australia in a proper manner.
Hence, as stated by Hong and Fauvel (2013) the need for a disruptive business model
is required to combat the high involvement of technology in the modern business world.
Hence, to gain high revenue, Domino’s have changed their business model and have started

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to focus more on the needs of the customers. de Jong and van Dijk (2015) is of the opinion
that disruption can be considered as a total displacement and destruction of a particular
business or product. Thus, in the modern day, with the advancement of technology,
companies face a high chance of adopting the disruptive strategy.
In the modern day, the stability of the business model is in doubt particularly after
comparing it with the past. The internal and external environment in the business market
needs to be considered as it has a great influence on the implementing changes in
organisations. According to Johnson, Christensen and Kagermann (2008), different
organisations have an influence on the changes of the existing business model. Similarly, the
changes in Domino's can also be influenced by the help of proper analysis. With the rapid
development of technology, Domino’s have seen staggering effects in its business model. The
connected products are considered as the physical devices that are interfaced with the
software technologies.
With the help of the smart connected products, Domino’s can have a significant
opportunity to ensure that the business model remains flexible and stable. This can help in
maintaining the sustainability of the business. Domino’s can become streamlined and easily
recognisable in the business industry so that it becomes more competing in the business
market. Domino’s can also make the business model more advanced and innovative. Porter
and Heppelmann (2015) are of the opinion that the application of the smart connected
products in the existing business of Domino’s can help the company become more flexible
and ensure that the external operations of the company are well maintained.
However, some threats may be seen due to the application of the model. Porter and
Heppelmann (2014) were of the opinion that investment in maintaining the security of a
company can be considered as a huge threat while applying this particular model. In the case

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of Domino’s the application understanding the operations of the employees can be a threat.
The level of security that the company has can be compromised with the application of the
business model process. At the same time, taking in resources for the development of the
company can also be a threat to Domino's as maintaining the resources require proper
management of inventories.
Hence, the managers of the company need to be aware of the fact that if the
application fails, then total disruption may be required for Domino’s. Hence, it can be said
that the business model canvas developed by Osterwalder and Pigneur (2010) can be used to
identify the effectiveness of the business models and its elements. Different strategies and
operations are laid in a manner that helps in making proper decision to analyse the elements
of business in a proper manner. Thus, Domino's can illustrate the findings of the ideas
presented with the help of the business canvas and try to develop a business model that can
help in addressing the potential challenges it may face.
It has been seen that the existing business model of Domino's in Australia creates a
value proposition that can assist in the growth of the company and the satisfaction of the
customers. Veit et al. (2014) stated that with the help of the business model, Domino's have
managed to generate high revenue by streamlining of operations and gain proper stability in
its financial matters. The profitability of the company can be determined by the application of
the business model. Thus, Domino’s can operate easily in the fast food industry of Australia.
Hence, it can be said that the role of the customers in the business model is of vital
importance.
The customers add value to the product and service by providing feedback about it
whether it is old or new. Dominos' have seen a massive improvement in the application of the
smart connected products. The introduction of new products, innovative recipes and various

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other products has had a massive impact on the minds of the customers. The application of
technology has also provided great value to the company. Domino’s in Australia are involved
in the CSR activities by providing charitable services as well as free education to the
students. The introduction of GPS tracker and pizza delivery within 30 minutes has benefited
the company.
According to Zott, Amit and Massa (2011), Domino's have talented and trained
employees that can provide high-quality services to the customers. The stores of Domino's
are mainly located in the central regions that can help in the timely delivery of the products.
This provides an opportunity to interact more with the customers and earn their trust and
loyalty. Another important advantage of the company is that it has fewer inventories that help
in reducing the overall cost of the company. Thus, Domino’s can extend its operations in the
global context. The fact that the company can provide online services and home delivery
makes it one of the biggest companies to order food from in the modern world. It also
maintains selling of the products via the assembly line. Domino’s possess the capability of
locating the customers easily with the help of GPS tracking device.
Chesbrough (2010) observed that the business model implemented in Domino’s is
dedicated to achieving the goals and objectives of the company. Alignment of the process and
activities must be done in a manner so that it can help in maintaining a proper system in the
company. Hence, Domino’s need to maintain an existing business process framework, that
can help to identify the systems so that it can improve in its overall goals. It needs to ensure
that Domino's have a more stable approach to the betterment of the company. Therefore, the
development of a system process can help in identifying the business operation of the
company in a proper manner.

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At the same time, gaining profit is considered as another important factor for the
company. The profit helps in identifying the usefulness of the stakeholders towards offering
values to the customers. Joyce and Paquin (2016) opined that the application of the revenue
model canvas could help in determining the ways to improve profitability. The importance of
the application of this particular model consists of understanding the strategies adopted by the
competitors. Domino’s can formulate the revenue model that defines the prices required for
selling the products to the customers. This involves identifying the target market and
identifying opportunities for a convenient pizza delivery route and time.
Conclusion
Hence, it can be said that business model plays an important role in influencing the
operations and system processes of an organisation. The usefulness of the business model is
that it can help a company, such as Domino’s to analyse the revenue it consists and the
usefulness of the structure. It can be concluded that innovation in the business model can help
Domino’s to maintain the loyalty of the customers. Therefore, the business model utilised by
Domino’s provides stability and an innovative method to improve its profitability in the
business. This can provide the company to remain as the leading pizza-serving restaurant in
Australia.

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References
Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range
Planning, 43(2–3), 354-363.
de Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model
innovation. McKinsey Quarterly.
Dominos.com.au (2018). Dominos.com.au. Retrieved 21 April 2018, from
https://www.dominos.com.au/
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting.
Hong, Y. C., & Fauvel, C. (2013). Criticisms, variations and experiences with business model
canvas.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business
model. Harvard Business Review, 86(12), 50. Scroll down to find the article.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. New Jersey: Wiley (the
unit textbook). The textbook is available from the CQUniversity library for free.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming
competition. Harvard Business Review, 92(11), 64-88.
Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming
companies. Harvard Business Review, 93(10), 96-16.

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Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., ... & Spann, M.
(2014). Business models. Business & Information Systems Engineering, 6(1), 45-53.
Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future
research. Journal of Management : JOM, 37(4), 1019-1042.