Domino’s Pizza Inc.
Student’s Name
Institutional Affiliation
Domino’s Pizza Inc.
Introduction
In 1997, Domino’s Pizza was lauded as the largest Pizza delivery company and the second-largest Pizza store chain. Today, it is one of the leading contenders for the sturdiest Italian Fast Food Chains. It has grown through development from a small establishment to a chain that operates more than nine thousand, three hundred and fifty stores across the globe. In the United States, It operates in all the fifty states, and it similarly has ventured into sixty-six other international markets (Domino’s Pizza Inc. 2019). The company’s specialty includes a wide range of Pizza products, including deep-dish, thin-crust pizzas, and pan. This paper shall conduct a SWOT analysis of the company and also provide recommendations through a step-by-step process on how the entity can increase production.
Strengths
The company has several strengths and has been influential in its success over the past years since its establishment. Firstly, there is the factor of Brand Recall. This is the awareness that plays an integral part in getting the customers to stay loyal and stick with the company as well as be advocates for the company. Additionally, it also helps the organization determine one’s target audience by offering a means through which the target audience can remember the name of the organization in case of any problem (Domino’s SWOT Analysis, 2019). Domino’s high brand recall emanates from its frequent advertising using numerous taglines, for example, “30 minutes nahi to free.” It is prudent to note that it is subject to the aggressive marketing of the company that it has been able to create awareness of its brand in the market.
Secondly, the company has a vast channel network. Operating a franchise of over nine thousand stores as well as having an operation that extends to over sixty countries, Domino’s has an extensive network which makes it a label name in the market, hence, its prowess. Thirdly, the company has an in-depth menu that is augmented by quick service. Consumers delight when they get quick services, and this is one of the factors that has aided the consumers to differentiate Domino’s from its competitors. Fourthly, there is the fact that it gives its consumers a low-cost alternative. The services offered by the company are pocket friendly as well as reasonable for the consumers. This is made so by the fact that establishing the shops does not require the ambiance expected in high-end restaurants (Domino’s SWOT Analysis, 2019). Take the case of India, one of the company’s international markets. Domino’s in India is exploring the middle class as well as the low-class market. In order to do this, they have provided low-cost offers for the market, and as such, it has become the most preferable for family outings and festivals.
The organization has also ventured into the provision of healthier alternatives. With the current lifestyle diseases, most of which point to fast foods, most customers are becoming cognizant of their health. In order not to lose these consumers, Domino’s has employed the use of healthier fats and incorporating wheat into their crusts. They have also started introducing salads with their Pizzas (Domino’s SWOT Analysis, 2019). Lastly, the company has an effective as well as efficient supply chain. Domino’s has ensured that deliveries are made within thirty minutes, which is a significant plus in relation to the needs of consumers.
Weaknesses
On the other hand, the weaknesses include shortcomings in the market, failure in operations, and the failure to offer employee satisfaction. First, the initial weakness deals with its operations, where the company has faced great difficulties in handling operations, especially with quality control (Domino’s SWOT Analysis, 2019). Subject to this, some of the outlets have been closed, which has dramatically affected its image. The other weakness is in relation to the decreased sales in the mature markets. As has been established, there have been many health-conscious messages among the populations, and as such, most of their consumers are experiencing a decrease in revenue, which has affected the business.
The third issue arises from Domino’s inability to retain its staff. The organization does not offer any training or developments to its employees, and this has raised challenges in relation to job satisfaction. Similarly, the organization has been picking up unskilled workers who cannot cope with the hectic environment (Domino’s SWOT Analysis, 2019). Additionally, some of the workers at Domino’s are holding employment for some time during summer or as they await to join colleges, and therefore, leave after some time. The last weakness is the inadequate number of eateries since the company has concentrated on increasing its delivery outlets. This becomes a problem as most consumers would prefer a sitting place, especially in places like malls.
Opportunities
The opportunities present in the case of Domino’s include market expansion and penetration, health-conscious eatables as well as restaurants. The company can expand into developing markets, especially in developing economies. Targeting these economies act as a future strategy to aid the company secures its future revenues since the established markets have matured. With regard to the provision of health-conscious eatables, the company should consider introducing a menu that is considerate of health issues with flavors that have low-fat content (Domino’s SWOT Analysis, 2019). This will help reach out to the mature market that is concerned about their health. Lastly, the company should consider opening up restaurants or eateries in the established markets. This will assist in approaching the customers who prefer eating out.
Threats
The threats to the establishment include the changing eating habits for consumers. With numerous government agencies as well as Non-Governmental Organizations pushing for health awareness, a significant number of the public is becoming aware of foods that should be consumed and those which should not. This is significantly affecting the revenue collection of Domino’s due to a reduction in consumers (Domino’s SWOT Analysis, 2019). The other threat is the intensive competition from direct competitors such as Pizza Hut, where some consumers would prefer them over Domino’s. Additionally, there is also competition from indirect competitors such as Burger King and McDonald’s, and in this case, some consumers would prefer burgers over Pizza.
Recommendations for Increase of Performance
Improvement of performance will rely on the evaluation of the weaknesses and threats that face the organization. Firstly, there will be a need to identify the underlying causes of the weakness and the threats alike. Secondly, after identifying the underlying causes, brainstorming should be done on the strategic approach that is best suited to address the issues (M et al. 2013). In this regard, it should be noted that the strategic plan should factor in the objectives and goals of what is to be expected. Additionally, care should be taken to address both long term goals as well as short term goals.
Concerning the long term goals, it can be seen that the issue in relation to healthy meals is there to stay since people are considering choosing healthier lives. Therefore, in the setting of long term goals, measures to counter the health issue should be considered. On the other hand, short term goals could include the training and development of employees to encourage job satisfaction (Crandall & Crandall, 2015). Thirdly, Key Performance Indicators should be identified. This will be necessary to ensure that there is a noticeable improvement. Noting that the plan will involve a change in culture for the organization, employee sensitization on expected change should also begin as a fourth step to ensure that they are on board with the plan. Lastly, the strategic plan should be implemented.
Conclusion
Domino’s Pizza continues to occupy its niche in the market despite numerous challenges that have beset the organization. However, noting that the company has grown immensely and riding on the fact that it is a household name, the company can continue raking in revenues through a strategic plan that will seek to ensure that there is increased performance. Augmenting this recommendation is the fact that the company has numerous opportunities in the market, which will be instrumental in achieving more celebrated performances.
References
Crandall, R. E., Crandall, W. (2015). How Management Programs Can Improve Organization Performance: Selecting and Implementing the Best Program for Your Organization. United States: Information Age Publishing.
Domino’s Pizza, Inc. | Encyclopedia.com. (2019). Retrieved 7 October 2019, from https://www.encyclopedia.com/economics/economics-magazines/dominos-pizza-inc
Dominos SWOT Analysis | Competitors & USP | BrandGuide | MBA Skool-Study.Learn.Share. (2019). Retrieved 7 October 2019, from https://www.mbaskool.com/brandguide/food-and-beverages/587-dominos.html
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