Case Study: Domino's Pizza, Inc. SWOT Analysis & Recommendations

This case study presents a SWOT analysis of Domino's Pizza, Inc., examining its internal strengths and weaknesses as well as external opportunities and threats. The analysis highlights Domino's backward integration strategy, extensive franchise network, and efficient infrastructure as key strengths. Weaknesses include limited healthy menu options and a lack of sustainability reporting. Opportunities are identified in refining organizational structure and partnering with local businesses. Threats include competition from other pizza chains and potential health regulations. The analysis suggests that Domino's should continue its expansion strategy, explore new markets, adapt to local flavors, and introduce healthier menu items. The document emphasizes the importance of nutritional value and recommends maintaining the leasing model for enhanced delivery. Desklib provides access to this and other solved assignments to aid students in their studies.

Name: ____________________________________
Company Name: Dominos Pizza, Inc.
SWOT Analysis
Strengths Opportunities
Internal External 1) There lies opportunity for the entity in terms of
refining its organizational structure. As stated,
the ultimate in charge of the operations is
Doyle. The same can be improvised with the
establishment of offices at various locations
that would refine the management of
operations.
2) In addition, there lies an opportunity to join
hands with the local businesses and snack
stores. This can be done by introducing their
flavors in the menu combined with the
nutritional aspects. This would not only reduce
the competition, but also improvise the existing
food menu of Domino’s.
1) One of the major
internal strengths is
backward integration
strategy, where the
Domino’s domestic
supply chain is
engaged in supplying
raw materials to the
franchisees. Thus, the
strategy results in
saving of time and
costs for the store
operations of
preparation of the raw
materials. It further
reduces the cost of
preparation of the
products.
2) The overhead and
investment costs are
cheaper for Dominos,
as compared to the
competitive firms that
follow the dine in
business model.
3) The company has
sound infrastructure as
evident by the
existence of the Pulse
Point-of-Sale System
which improves order
accuracy and results in
efficiency in time and
savings while
attempting multiple
deliveries.
1) The company has
range of branches,
franchises and stores
within and outside
USA. The entity
operates in the United
States with 911 stores.
Some of the major
markets of the
enterprise include that
of United Kingdom,
Mexico, and supply
chain centers in
Canada, Alaska,
Hawaii. In addition, the
entity has recently
grown in the regions of
India, Turkey, and
Japan.
2) Another external
strength can be stated
to be in terms of policy
of the store
management for 1 year
by the prospective
franchisee, before
entering into a contract
with the company
Domino’s. This policy
can be stated to give
the entity competitive
advantage over its rival
pizza firms.
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Weaknesses Threats
Internal External
1) The major internal
weakness that can be
stated for the entity is
the contents chosen
to be listed on the
menu. The company
offers very little to
almost zero healthy
food options on its
menu across it’s all
the branches. Thus,
the company is not
able to attract the
health conscious
consumers.
2) Another weakness
is that the company
does not gives the
insight of its
business operations
in the form of
sustainability
reports.
3) As the entity
operates through
the franchisee
model, the entity
has a less base of
the employees
unlike the
competitors Papa
John’s.
1) One of the
major weaknesses of
the entity business is
that it faces tough
competition from the
giants like Pizza Hut.
While the chief
competitors has more
revenues than the
entity, the competition
is further posed by
local mom-and-pop
pizza stores, other fast
food chains and the
frozen pizzas from the
grocery stores.
2) The second
weakness can be
stated to be that due
to the complex
recipes and the
number of elements
involved, it is difficult
to predict the exact
number of calories in
the products of
entity. Therefore, the
nutritional value is of
a great concern.
3) Further, the
weakness is that the
customers are willing
to pay more to the
local pizza stores in
consideration of the
quality factors.
1) The major threat for the entity is in the form
of the health and other regulatory agencies.
These agencies can anytime introduce laws
on the lines of health issues such as ban of
certain ingredients or the use of
preservatives in the products or to display
the health related information such as
nutritional value on the products. Thus
would put the revenues of entity in serious
danger.
2) Another major threat can be stated to be
that the barriers to entry are relatively low in
the industry in which the company operates
that is the food and restaurant industry.
Thus, new players can enter in the industry
quite easily and expand as well, posing
threat to the empire of Domino’s.
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How the above information will be used:
A SWOT analysis can be stated to be an integral part of strategic planning process of an entity. It gives
the managers insight of the positive and negative factors that influence the entity’s operations internally
as well as in external terms.
Looking at the competitive advantage statistics that prove that Domino’s has largely grow in terms of
number of stores especially outside US. Thus, the goodwill and existing economies in terms of the
infrastructure, expertise and finance can be utilized by the company to continue its aggressive
expansion strategy.
It is suggested to the company to explore the regions beyond the United States and UK. The company
can expand in untouched regions of Asia, China, Middle East and similar developing nations. This
expansion is backed by the reason of growing trends in fast food industry in international markets. The
company can enter there with the combination of local flavors, just like the expansion was successful in
the regions of India and Japan.
It is further suggested to the company that as the market vitals of the regions such as that of Asia, the
Middle East, and South America are entirely different than the United States, the geographical division
in terms of independent management of these regions would be more beneficial for the entity. This can
be done by hiring local expertise and managers, who are well versed with the market conditions locally
and thus, can formulate and amend the strategies more efficiently as compared to centralized group of
managers. The company can afford this financially as well with a market capitalization of $ 1.76 billion.
In addition, as stated in the SWOT analysis, nutrition value in the products offered is a major concern
for the entity; therefore it is suggested to the company to introduce items like salads and other healthy
options to combat the external threats and target the healthy customers as well.
Lastly it is suggested to the entity to continue with its leasing model which enables the company to
have enhanced delivery process and further it is company’s unique selling product, as absent in case
of any of its competitors.
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