Comprehensive SWOT Analysis of Domino's Pizza: Business Report

This report presents a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Domino's, a leading global pizza restaurant chain. It begins with an introduction to the SWOT framework and provides a company background, detailing Domino's history, founding, and current market presence. The core of the report is the SWOT analysis, which identifies Domino's strengths, such as strong brand equity and technological innovation, and weaknesses, including fewer stores compared to competitors and operational challenges. Opportunities, such as expansion into emerging markets and a focus on healthier menu options, are also explored. Threats, including intense competition and changing consumer habits, are examined. The report then applies a TOWS matrix to generate strategic combinations, leveraging strengths to capitalize on opportunities, mitigating weaknesses, and addressing threats. The analysis also includes a detailed discussion of the internal dough making and supply chain resources to respond to changing demands. The report concludes by emphasizing the importance of the SWOT analysis for strategic decision-making and future growth, providing insights into how Domino's can achieve a competitive advantage in the fast-food industry. The analysis considers the continuously changing environment and the evolving tastes and preferences of consumers in the global fast-food sector, suggesting that Domino's needs to modify its production strategies to satisfy health-conscious consumers. References to relevant academic research are also provided.

Article Work: SWOT Analysis of
Domino’s
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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Company Background of Domino’s:...........................................................................................3
SWOT Analysis of Domino’s:.....................................................................................................4
Strengths:.................................................................................................................................4
Weaknesses:.............................................................................................................................5
Opportunities:..........................................................................................................................5
Threats:....................................................................................................................................6
TOWS Matrix Analysis of Domino’s:.........................................................................................6
Strength-Opportunities (SO):...................................................................................................7
Weakness- Opportunities (WO):.............................................................................................7
Strength-Threats (ST):.............................................................................................................7
Weakness-Threats (WT):.........................................................................................................8
Conclusion:......................................................................................................................................8
References:......................................................................................................................................9
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Introduction:
SWOT Analysis is a tool that is used by many of the modern business establishments for
determining the external and internal factors impacting the business operations. It reflects the
internal factors such as the strengths and weaknesses of the business and also identifies the
external factors such as the opportunities and threats of the organization. The objective of a
SWOT Analysis is to enable a business entity to understand all the influencing factors impacting
the business that impact on business decision-making. The tool is used to analyze several
activities of the business such as exploring new opportunities, redesigning internal policies or for
undertaking any other forms of change management strategies. The tool should be used by a
business organization for selecting the recommended strategies for leveraging the areas of
strengths and opportunities for overcoming the areas of weaknesses and threats. This article
demonstrates the SWOT Analysis for Domino’s, one of the leading global pizza restaurant
chains in the world (Helms & Nixon, 2010).
Discussion:
Company Background of Domino’s:
Domino’s was founded in 1960 in Michigan, US. The company is one of the leading pizza
restaurant chains in the world. The company has been founded by James Monaghan, Tom
Monaghan, and Dominick DiVarti. The company is headquartered at Michigan and it currently
serves across 16, 000 locations around the world. David. A Brandon is the Chairman and Richard
Allison is the CEO of the company. The company is a specialist in a variety of pizzas but now it
serves other delicious food items such as chicken wings, pasta, submarine sandwiches, and
dessert. There are around 14, 100 employees currently serving the company in its company-
owned stores and offices. The figure comes to around 2, 90,000 when the franchises are also
considered (Domino's, 2019).
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SWOT Analysis of Domino’s:
SWOT Analysis Framework
The SWOT Analysis of Domino's reflects the following outcomes:
Strengths:
The key strengths of Domino’s as a brand are as follows:
 The brand has strong brand equity due to which it can gain a competitive edge.
 The business model of Domino’s is a proven framework of global success.
 The company invests in technological innovation and undertakes continuous
development (Phadermrod, M.Crowder, & B.Wills, 2016).
 It has its dough manufacturing facility and a highly effective supply chain strategy.
 High brand recall through aggressive marketing strategies is a major advantage for the
company.
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 There is a robust channel network across several countries of the brand.
 The brand has a quick service with a variety of menu.
 The products are reasonably priced which attracts the customers.
 The brand is focusing on making healthy menus for health-conscious customers
(Abraham, Martinez, Salas, & Smith, 2018).
Weaknesses:
The weaknesses of the brand are as follows:
 The number of stores is lower than the other brands and this is causing a lack of
competitive edge.
 Often there are franchisee-related problems that are faced by the brand across its global
markets.
 The brand often faces operational difficulties in its entire supply chain activities.
 A large number of outlets in some countries are not being effectively handled by the
management creating operational difficulties.
 The sales are decreasing in mature markets which is a major issue for the brand.
 Lack of effective training and development is creating high turnover in many of the
countries.
 There is less number of eating joints and more delivery outlets which is a major weakness
of the brand.
Opportunities:
The opportunities for Dominos are as follows:
 There is a lot of opportunities for the brand to expand into emerging markets in different
parts of the world that are developing.
 The brand should focus more on healthy food menus such as the low-calorie items and
other organic ingredients for attracting more customers (Ashakiran & Kiran, 2012).
 The modern generation of consumers prefer environment-friendly products and services
that are safe for health and the environment and this is an area that the brand can focus
more (Bowman & Vinyard, 2004).
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 Market penetration opportunity is there for the brand for entering into its current markets
by enhancing its outlet network which will help in enhancing the revenues of the brand
manifold.
 The brad should open up more exclusive restaurants at important locations that will give
more brand recognition and will also offer the opportunity to the customers to enjoy their
food in cozy outlets of the brand.
Threats:
The major threats for Dominos can be enumerated as follows:
 The intense rivalry within the competitive industry encompassing direct and indirect
competition is a major threat for the brand.
 The changing eating habits owing to the health-consciousness of the consumers abstain
many of the prospective customers from eating fast food which is affecting the business
of the brand.
 The rising prices of raw materials enhance the cost to the company in running its pizza
chain across its global markets.
 The changing regulatory norms around the world impact the business in several markets
around the world.
 The lack of a high number of long-term contracts with major suppliers is a big challenge
for the brand.
TOWS Matrix Analysis of Domino’s:
The TOWS Matrix has been developed from the strengths, weaknesses, opportunities, and
threats that have been determined for Domino's in this article. The matrix can be utilized to take
advantage of the strengths and reduce the weaknesses and also for minimizing the challenges that
emerge from the major threats faced by the brand.
Strength-Opportunities (SO):
 Domino's should utilize its strong brand equity for partnering with several brands in the
emerging markets in developing countries such as in Asia. In some of the Asian markets
such as China, Domino’s has not achieved a successful market expansion and hence it
should look for developing economies in Africa and the Middle East region also.
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 Technological capacity can be utilized better by the brand to offer its products to the
millennial customers and also for increasing the popularity with the middle-class
consumers.
 Domino’s should focus more on producing low-calorie menus and organic food items to
attract the modern generation of health-conscious consumers. The internal dough making
system and the supply chain resources need to respond to changing demands.
Weakness- Opportunities (WO):
 Domino’s can utilize diverse store models for enhancing the number of stores in the
markets that are not yet fully penetrated.
 The operational problems faced by the different franchises around the world can be
resolved by strengthening the internal supply chain strategies and capabilities.
 There needs to be a unique code of conduct that should be observed by all the franchisees
of the brand around its global markets.
Strength-Threats (ST):
 Domino's should undertake more effective marketing and advertising strategies for
effectively promoting its products and services to the target customers to gain a
competitive edge in the industry.
 The brand should focus on compliance for ensuring that the threats from regulatory
principles are minimized.
 The brand can decrease its costs of operation and purchasing raw materials by improving
the supply chain management functions through optimal resource utilization.
 Domino's should make and market several low-calorie food items for global consumers
such that there are more attraction and retention of the modern generation of health-
conscious consumers.
Weakness-Threats (WT):
 Domino’s can reduce its competitive pressure significantly by enhancing the number of
outlets across its global markets.
 More eateries are to be opened up apart from the takeaway outlets for gaining
competitive advantage among the major rivals.
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 The brand should focus on developing and sustaining relationships with the major
suppliers for the long term.
Conclusion:
In conclusion, SWOT Analysis is a tool that is extremely effective for a modern business
organization in assessing its current strengths, weaknesses, opportunities, and threats. The tool
helps a business entity develop business strategies accordingly so that there is an assurance of
success. Here, a SWOT Analysis of Domino's has been executed that has helped in determining
the major areas of strengths, weaknesses, opportunities, and threats for the brand in its current
US and global markets as well. The article also reflects the TOWS Matrix Analysis of the brand
that has reflected the major strategic combinations that should be adopted by Domino's for being
able to successfully design the future operational and marketing strategies. The continuously
changing environment and the alterations in the tastes and preferences of the consumers in the
global fast-food sector is a major consideration for Domino's as it needs to modify its production
strategies accordingly so that the demands of the health-conscious consumers can be effectively
satisfied. This analysis has provided the tools to the brand for determining its future growth and
expansion strategies that will enable the brand to achieve a competitive advantage in the industry
amidst its major rivals.
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References:
Abraham, S., Martinez, M., Salas, G., & Smith, J. (2018). College student's perception of risk
factors related to fast food consumption and their eating habits. Journal of Nutrition and
Human Health; Volume 2, Issue 1 , 18-21.
Ashakiran, S., & Kiran, D. (2012). Fast foods and their impact on health. Journal of Krishna
Institute of Medical Sciences University 1(2), 7-15.
Bowman, S., & Vinyard, B. (2004). Fast food consumption of U.S. adults: impact on energy and
nutrient intakes and overweight status. J Am Coll Nutr; 23(2), 163-168.
Domino's. (2019). Domino's - About Us. Retrieved from www. dominos.com
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis – where are we now?: A review of
academic research from the last decade. Journal of Strategy and Management, Vol. 3
Issue: 3, 215-251.
Phadermrod, B., M.Crowder, R., & B.Wills, G. (2016). Importance-Performance Analysis based
SWOT analysis. International Journal of Information Management;
https://doi.org/10.1016/j.ijinfomgt.2016.03.009, n.a.
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