Domino's Pizza Australia: Market Position, Financials and Strategy

This report analyzes the market position of Domino's Pizza in Australia, examining the Australian pizza industry's market size and trends. It assesses Domino's corporate and financial performance in Australia and globally, highlighting its market share and revenue growth. The report explores strategic options for Domino's, recommending the expansion of restaurants to increase its customer base and brand value. It also discusses the implementation of this strategy, emphasizing investment in store modifications and franchising. The report concludes by stressing the importance of monitoring and controlling future performance to maintain Domino's leading position in the competitive pizza market. Desklib provides access to similar solved assignments and past papers for students.

Running head: ANALYSIS OF THE MARKET POSITION OF DOMINOS
ANALYSIS OF THE MARKET POSITION OF DOMINOS
Name of the Student
Name of the University
Author Note

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Executive Summary
This report is based on the analysis of an organization and the future expansion plans related
to the industry. The company that is taken into consideration is Dominos and its operations as
well as expansion plans in Australia. The market size of the Australian pizza industry and the
trends related to the industry are analysed in the report. The corporate as well as the financial
performance of the company in Australia and in the other countries is discussed in detail. The
expansion strategy that is being recommended for the expansion of Dominos is the opening
of new restaurants in Australia, so that Dominos can increase its customer base.

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Table of Contents
Introduction....................................................................................................................3
Market Size & Trends....................................................................................................3
Financial and Corporate Performance............................................................................4
Strategic Options............................................................................................................5
Recommended Strategy.................................................................................................6
Implementation of Final Strategy...................................................................................7
Monitoring and Control of Future Performance............................................................8
Conclusion......................................................................................................................9
References....................................................................................................................11

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Introduction
Dominos Pizza was established in the year 1960 by two brothers James Monaghan
and Tom Monaghan when they started a pizzeria named “Dominick’s Pizza” located in
Ypsilanti, Michigan. The two brothers then separated their businesses and James sold his
business for Volkswagen Beetle for the purpose of deliveries. Tom acquired two more
pizzerias in the year 1965 and the organization was further renamed as Dominos. The
organization established its branches in Australia in the year 1983 and the first store was
opened in Springwood, Queensland (Dominos.com.au., 2018). The food chain had to face
many setbacks during the first few years, however, they expanded their branches in many
other areas of the country including, Sydney, Brisbane and Perth. The franchise of Dominos
was purchased by Silvio’s Dial-A-Pizza and around 70 stores of the company were converted
to Dominos.
The international expansion of Dominos had started from the year 1983, when they
opened their first international store in Winnipeg, Manitoba, Canada. Dominos opened its
1000th store in Vancouver in the same year. The organization started its operations in United
Kingdom in the year 1985 and then they started their stores in Japan. In this manner,
Dominos started expanding its operations in the other parts of the world and they had their
stores in more than 1000 international areas. The company was able to grow its stores up to
6000 locations all over the world within the year 2014 (Al‐Hadi et al., 2017).
This report is based on the analysis of the market position and market size of
Dominos in Australia. Further, the report will be based on the strategy that can be
recommended to the organization so that it can increase its sales and revenues.

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Market Size & Trends
The pizza market in Australia has been growing immensely in the recent years and the
pizza chains have increased their marketing related expenses. The restaurants and pizza
makers have experienced huge sales growth in the last few years in spite of the economic
problems. The gourmet restaurants selling pizzas in Australia like, Crust Gourmet Pizza Bars
has proved to be one of the fastest growing chain of restaurants in Australia. The restaurants
are trying to increase the variety of their offerings along with affordable prices (Amba, 2014).
Dominos has proven to be the largest pizza chain in Australia and they have also started
adding fresh ingredients in the pizzas. This has been done to increase the revenues of the
company and fulfilling the demands of the consumers of the Australian pizza market. The
market share of Dominos in Australia is the highest among all the other companies. Dominos
holds 43% of the total pizza market in Australia followed by Pizza Hut with 23%, Pizza
Capers with 21% and Eagle Boys Pizza with 12% (Baños-Caballero, García-Teruel &
Martínez-Solano, 2014).
The size of the market of an organization mainly determines the market share of that
company in the country. The dominance of an organization in the market is determined by the
market size and market share of the company in the country. Dominos has the highest market
share in the pizza selling industry of Australia. Pizza has become the highest selling takeaway
option for the last few years. This has made Dominos the highest selling pizza brand in the
country. According various researches, more than five million Australian citizens have
ordered pizza once in a week (Buckingham & Goodall, 2015). The market share of Dominos
has increased considerably from 2012 to 2016. The sales of pizzas in Australia has been
dominated by Dominos and the second position in the market was taken by Pizza Hut
followed by the other pizza brands.

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Financial and Corporate Performance
The pizza industry in Australia has grown in size in the past few years and this has led
to the increase in the revenues of all the pizza makers in the country. Dominos Pizza has also
been successful in doubling its value in the last 12 months and they have increased their
revenues by 600 per cent. The share price of the organization has increased its value to 3.3
billion dollars, however, this growth has been taken quite well by the market watchers
(DeNisi & Smith, 2014). Dominos Pizza has climbed to the first position in the Australian
market from the fourth position within a short time interval.
The financial performance of Dominos has improved in the year 2016 and the profit
was recorded as $92 million and the increase in the profits was determined as 43.6%. The
overall network sales of Dominos have increased by 32.7% and the store sales of the
organization had increased by 10.9% all across the stores of the group and the growth was
highest in New Zealand and Australia (Eccles, Ioannou & Serafeim, 2014).
The profit levels of Dominos have been decreasing from the year 2017 due to the low
sales of the company in France and Japan. The growth in the earnings of Dominos have
slowed in the current year due to the loss in sales in many countries. The market has been
losing the confidence on the cash flow and operating model of Dominos. The underpayment
of wages to the workers of the company has been the major issue related to the loss of profits.
The complaints raised by the franchises of Dominos regarding the low payment of profits and
changing of workers within a short period of time has also added to this issue (Isidro &
Sobral, 2015).
Strategic Options
The major strategic changes that has occurred in Dominos in the recent years is the
change in the product offerings with low cost products and the health related products. The

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
marketing policies of the organization has also been changed and they have found ways to
engage the customers in the processes of the organization. Dominos has brought changes in
the technology related to the processes of the organization. This has been done to improve the
experience of the customers who are eating their pizza (Laszlo & Zhexembayeva, 2017).
Dominos pizza has been planning to make a turnaround in the recent years by opening
more and more stores in many new locations in the world. The company has the highest
position in the Australian pizza market, however, they were struggling for their position in
the market globally. The management had therefore planned for some major changes in the
policies of the company so that they can get the top position in the industry. Dominos has
opened more than 1800 new stores all over the world. The emerging markets like China and
Brazil have become a major part in the success of the company (Lins, Servaes & Tamayo,
2017). The organization is also planning to bring changes in the pizza recipes so that more
customers can be attracted towards the restaurant. The menu of the company is also being
improved so that they can compete with the other players in the market. The marketing
policies of the company are also being redesigned so that the consumers are attracted towards
the products of Dominos. The organization is aiming at providing good value to the
consumers and great quality food as well (Martikainen, Niemi & Pekkanen, 2014).
The main qualities of Dominos related to the marketing strategy is the vertically
integrated supply chain of the company. The speed of delivery of the organization is a major
factor that affects the sales of Dominos. The most important quality of Dominos are the cost-
effective outlets of the company in the entire world. The outlets of the organization are
located in a strategic manner in all the locations in different countries. The innovative
strategy of Dominos has been the major reason for the success of the company in the past
years. However, they are bringing major changes in the strategy so that they can cater to the
changing needs of the customers (Mone & London, 2014).

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
Recommended Strategy
The major strategic changes that can be brought in Dominos so that they can increase
their revenues and profitability is to open more restaurants in new locations globally. The
company does not have many restaurants in the various locations that they have in the
different countries. Dominos mainly operates with the takeaway and delivery related options
and the opening of restaurants will then in increasing their operations. The demands in the
Australian pizza market is quite high for the gourmet pizza restaurants as well as the delivery
pizza business. Dominos can increase its revenues by starting gourmet pizzas and operating
full service restaurants. This will help the company in increasing the base for the upscale type
customers. The entry of Dominos in this market area will help them in increasing their brand
value in the global market. The current ranking of Dominos in the global market is 301 and
this expansion will increase the position of the company globally.
The other competitors of Dominos in the global market already have their restaurants
operating and this acts as a disadvantage for the profits of Dominos. The market share of
Dominos can be increased with the help of the restaurant operations in the market. Dominos
already has a huge share in the market in most of the countries with the help of the offers and
discounts that are provided by them online. The on time delivery related feature of the
company has also helped them in creating the share in the market. This market share can be
further increased by creating a new customer base for the restaurants of Dominos.
Implementation of Final Strategy
The organization will first need to acquire suitable areas in the prime locations of the
various countries so that they can start their operations. Dominos can start this expansion by
modifying their already operating stores in the various global locations. The company needs
to invest in the modification related activities of the stores. This will help in acquiring in

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
customers who are more interested in experiencing restaurant services. Dominos can then
expand their restaurant operations by providing franchises so that the investment is not high
(Nollet, Filis & Mitrokostas, 2016). The less amount of investment will help in increasing
their profits and revenues. Dominos will then have their operations in the delivery areas as
well as the restaurant areas. The huge base of customers will help in the increase of profits
and improve their shares in the market. The restaurant operations will help Dominos to
compete with the other gourmet restaurants in the market (Rutsaert et al., 2014).
Monitoring and Control of Future Performance
The performance of the business plan or the strategy that has been recommended for
Dominos can be improved by assessing the market and the competition. The first step related
to the monitoring of performance is related to the creation of review dates related to the plan
implementation. The performance of Dominos after the implementation of the strategy needs
to be reviewed after six months (Saeidi et al., 2015). The main points of review in this case
are problems related to cash flows, reaching the new markets. The introduction of new
products in the menu of the restaurants and the response received for the new items is another
major point of review. The review in Dominos needs to conducted in a quarterly manner. The
review will be conducted with the help of a tracking system which will be developed to
assess the improvement of the company based on the implementation of the new systems
(Shahzad & Sharfman, 2017).
The revenues and profits will be tracked based on the weekly budget of the
restaurants. The key element of the implementation will include, market research and the
competition in the market. The marketing plans and business needs to be coordinated so that
the goals of the company can be monitored. The effect of the changes related to some of the
elements on the other elements of the marketing plan needs to be monitored regularly. The

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
demands and needs of the consumers of Dominos can change on a regular basis and this will
require changes in the implementation of plans as well. The implementation plan needs to be
revised on a regular basis so that they are always updated on the basis of the needs of the
consumers (Wagner III & Hollenbeck, 2014).
The major tools that can be used for the management of performance are the Key
Performance Indicators or KPIs. The KPIs are most widely by many organizations for the
management of performance. Dominos can also use this tool for the purpose of monitoring
their performance in the industry. The indicators of performance of Dominos in the market
can be, the increase in the revenues, increase in the number of customers, improvement in the
ratings that are provided by the customers. Performance appraisals can also be used as a tool
by Dominos for the purpose of the management of the performance of Dominos. This tool
helps in the alignment of the goals of the individuals with the strategic goals of the company
(Wang, Dou & Jia, 2016).
Conclusion
The report can be concluded with the learning that Dominos is already a successful
organization in Australia. The organization holds the topmost position in the pizza market of
Australia. However, the organization can further increase its profitability by increasing the
number of eateries in the country. Dominos needs to open more restaurants along with the
delivery options. This will help Dominos to compete with the other organizations which are
direct or indirect competition for them. This will further enable them to maintain the top
position in the pizza market in Australia. The performance of Dominos based on the
implementation of this strategy needs to be monitored with the help of the various
performance management tools as discussed earlier. The monitoring of performance will help
in judging the effectiveness of the new expansion plan of the organization. This will further

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ANALYSIS OF THE MARKET POSITION OF DOMINOS
help in planning the future moves of Dominos related to the operating of restaurants and
increasing the customers of the company.

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References
Al‐Hadi, A., Chatterjee, B., Yaftian, A., Taylor, G., & Monzur Hasan, M. (2017). Corporate
social responsibility performance, financial distress and firm life cycle: evidence from
Australia. Accounting & Finance.
Amba, S. M. (2014). Corporate governance and firms' financial performance. Journal of
Academic and Business Ethics, 8, 1.
Baños-Caballero, S., García-Teruel, P. J., & Martínez-Solano, P. (2014). Working capital
management, corporate performance, and financial constraints. Journal of Business
Research, 67(3), 332-338.
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard
Business Review, 93(4), 40-50.
DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and
firm-level performance: A review, a proposed model, and new directions for future
research. The Academy of Management Annals, 8(1), 127-179.
Dominos.com.au. (2018). Dominos Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. Dominos.com.au. Retrieved 19 February 2018, from
https://www.dominos.com.au/
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on
organizational processes and performance. Management Science, 60(11), 2835-2857.
Isidro, H., & Sobral, M. (2015). The effects of women on corporate boards on firm value,
financial performance, and ethical and social compliance. Journal of Business
Ethics, 132(1), 1-19.