Domino's Marketing: SWOT, Competitive & Situational Analysis

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This report provides a comprehensive marketing analysis of Domino's, a globally recognized pizza company. It begins with an introduction and background of Domino's, highlighting its establishment, mission, and global presence. The report then delves into a SWOT analysis, identifying the company's strengths, such as its market leadership and quality products, weaknesses like high overhead costs, opportunities for market share enhancement through product variation, and threats from competitors like Pizza Hut. A situational analysis follows, encompassing company, market, environmental, and competitive aspects. The company analysis considers strategies for increasing profits, while the market analysis discusses Domino's extensive global reach. The environmental analysis examines economic, sociocultural, and technological factors influencing the company. Finally, the competitive analysis compares Domino's with competitors like Pizza Hut, emphasizing the importance of promotion and strategic pricing to maintain a competitive edge. Desklib offers this student-contributed report alongside a wealth of study resources.
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Running head: marketing
Marketing
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Table of Contents
Introduction and background......................................................................................................................1
SWOT Analysis.............................................................................................................................................1
Strength...................................................................................................................................................1
Weaknesses.............................................................................................................................................2
Opportunities..........................................................................................................................................2
Threats.....................................................................................................................................................2
Situational Analysis......................................................................................................................................2
Company Analysis....................................................................................................................................2
Market analysis........................................................................................................................................3
Environment analysis...............................................................................................................................3
Competitive analysis................................................................................................................................3
References...................................................................................................................................................4
Introduction and background
Domino's is considered as one the biggest and famous company globally. The services
and products that are given by Domino's are innovative and it encourages customers to purchase
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the product. Domino's also provided door to door facility and take away service to its customers
so that the satisfaction level of the customers can be enhanced. The Domino's Australia provides
Italian American food to its customers and also provides various types of pizza. Domino's was
established in 1960 by Tom Monaghan and the 25th anniversary of the company was celebrated
in the UK in 2010.
The mission of the company is to give proper services and to achieve a large market
share. In 1960 Domino's began its activities from a single store and known as the leaders of the
pizza business. The activities of Domino's are conducted in more than 11,000 stores and in more
than 70 countries. Approximately more than 400 pizzas are supplied to the customers globally in
each day. Earlier pizza was only the product that is offered by the company but to survive in the
competitive market Domino’s has prolonged the product line and there are many products like
pasta which are available on the outlets. The market share of the company is large and it needs
more dominance to enhance the operations of the market.
SWOT Analysis
Strength
By considering the present scenario, it is seen that the company is the leader in the
market that offer varieties of pizza to its customers. The image of the company is good in the
market that induces customers to consume the quality product. It is seen that the company offer
quality and taste in the products. The employees of the organization are motivated by the top
management so that they can give their best to achieve the overall goals and objectives.
The company offer home delivery services and also good products. The major strength
influenced by Domino's is that they have proper infrastructure and delivery services. There are
competitor who does not have a good infrastructure and delivery services. By the restaurants,
the organization gives emphasis on altered segments that are not done by the other competitors
of the company. Like the target is on all the age group people (David and David, 2016).
Weaknesses
It is related to the high over costs just because of the good location of the restaurants.
This cost is not acquired by the competitors of the company. If the overhead cost is high then the
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cost of the product will be raised. It is evaluated that Domino's is measured as a low-cost
producer. They offer products by giving emphasis on quality and the satisfaction of the
customers. The company considers the techniques that are related to the innovation of the
products. Due to saturation in the Australian market, the company has also faced problem in
conducting the activities. Domino's should emphasize on reducing the weakness and it is done if
proper steps are taken so that Dominos can easily accomplish goals and objectives (Hamouda,
2016).
Opportunities
There are various opportunities that are prevailing in the market. Domino's has many
chances but the right time is required to grab it. It is seen that if the product is varied then the
share of the market can be enhanced. The Domino’s should take into consideration many
opportunities so that the utilization can be done in a proper manner. Product innovation is also
the strategy that is helpful to conduct the activities in the Australian market. Domino's should
approve new product line strategy for growth (Syed, 2016).
Threats
It is evaluated that no organization can survive for a long time without the problems or
threats. The threat to the company is that the competition level in the market. The competition
level is so high that it reduces the overall profitability of the company. The competitor of
Domino's is pizza hut who is establishing many branches in various locations in a speedy
manner. The organization should focus on a different pattern so that the risks can be minimized
in a proper manner.
Situational Analysis
Company Analysis
It is seen that there are many competitors in the market that gives negative impact on the
overall profitability of the company. By taking into Consideration Company analysis of
Domino's it is analyzed that there are many effective strategies that increase the overall profits.
The strategies like offering products at fewer prices or giving discount vouchers to the customers
will be an advantage for the consumers.
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Market analysis
Domino's has more than 11,000 stores in more than 70 countries. There are more than
400 million pizzas that are sold by the company globally. The market share of the company is
large that helps to achieve profits in an effective manner.
Environment analysis
By considering the economic environment it is seen that the economic recession has
given bad impact on many industries. The overall profits and revenue are minimized and the
requirement of the customers is also reduced. In the Sociocultural environment, the customers
are giving focus on their health so the company should offer menu by considering the health of
the customers. In the technological environment, the company offers 30 minutes delivery to its
customers and this strategy gives benefit so that the customers can be attracted (Armstrong et al.,
2014).
Competitive analysis
There are many competitors of the company like pizza hut. It is evaluated that bot the
brands gives emphasis on enhancing the satisfaction level of the customers. Domino's is known
for its quick delivery and also if the comparison is made with pizza hut it is seen that the costs of
the products and services are low (Guido et al., 2016).
Domino's has covered a large market share and enhanced the activities by considering
the requirements of the customer. To compete effectively it is important to promote the product
so that the benefits and profitability can be achieved. Due to tough competition in this industry, it
is important to take correct strategies like promotion, offering products at a low price so that the
clients can be induced to avail the services and products (Aaker and Biel, 2013).
References
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Aaker, D. A., & Biel, A., 2013. Brand equity & advertising: advertising's role in building strong
brands. Psychology Press.
Armstrong, G., Adam, S., Denize, S., & Kotler, P., 2014. Principles of marketing. Pearson
Australia.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases.
Guido, G., Peluso, A.M., Mileti, A., Capestro, M., Cambo, L. and Pisanello, P., 2016. Effects of
background music endings on consumer memory in advertising. International Journal of
Advertising, 35(3), pp.504-518.
Hamouda, M., 2016. Company-Customer Interaction via Social Media: Contributions to the
Marketing Mix. In Managing Public Relations and Brand Image through Social Media (pp. 160-
170). IGI Global.
Syed, I., 2016. SWOT analysis and operation management decisions of Domino's pizza.
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