Dominos Pizza: Strategic Examination and Recommendations

Tom Monaghan and his sibling James founded Domino's Pizza Incorporation in the entire year 1960 after they purchased DomiNick's. DomiNick's was a tiny pizza store in Michigan and specifically at a place called Ypsilanti. Tom Monaghan became the only real owner of the business enterprise after his brother traded half of the business for a used Volkswagen Beetle and later renamed the business enterprise Domino's Pizza Inc. in the entire year 1965 (Daszkowskii). The business deals in the NYSE under the name DPZ and it includes a number of stores internationally. The company's headquarters is Ann Arbor, Michigan, in the United States of America.

Domino's Pizza Inc. has been regarded as the second-largest pizza string in america matching to Forbes Journal. The position of the company is that they have over 9, 000 franchised and corporate stores tin over 60 international market segments including the 50 states in the United States. It's important to note that the company was bought Bain Capital back the entire year 1998 and shares were exchanged in 2004 after the company went general population. Some of the delicacies highlighted on the Domino's menu include pasta, oven-baked sandwiches, boneless hen, wings, breadsticks, salads, a number of desert items, cheesesticks, and undoubtedly pizza (Daszkowskii).

Since its inception, the business has grown from durability to power. Domino's Pizza Inc. started out its first franchise business in 1967 by beginning a first store in Ypsilanti. Regardless of the original idea to include a dot to the emblem of the business on every opening of a new branch, the idea was quickly experienced out because the company was quickly experiencing immediate growth. By the entire year 1978, the business enterprise opened its 200th store. This confirmed how first the business was growing. However, it's important to note at this time that the company has underwent a major challenge during its infancy periods that threatened to hamper the expansion of the business and even its existence. The 1975 lawsuit registered by Amstar Organization, that was a manufacturer of Domino Sugars at that time, made a issue arguing and alleging that Domino's Pizza Incorporation had violated and infringed its trademark and acquired therefore instituted unfair competition to their company. This legal challenge lasted for five years and on, may 2, 1980, the judge of appeal or federal government appeals judge ruled and only Domino's Pizza Incorporation (Daszkowskii).

Domino's Pizza Incorporation proceeded to go international in 1983 when it exposed its first international store on, may 12, 1983 in Winnipeg, Manitoba, Canada. During the same year, the Domino's got managed to open up its 1, 000th store generally. The company also were able to reach a whooping 1, 000 international stores by the entire year 1995 and further stretched this number to at least one 1, 500 stores in the next two years. One of the greatest achievements of the company in terms of growth was the beginning of seven stores across five continents in just one day (Datamonitor).

Domino's Pizza Company rolled out its mobile and online placing your order services in the year 2007 while at the same time delivering and bringing out their Fantasy franchising programs and at tits Veterans respectively. These occasions made a significant impact in the business pushing company functions a notch higher. Each other significant event in 206 was the performance of Domino's store in Tallaght, Dublin in Ireland: the store made a turnover of $3 million and become the first store ever in the annals of the company to hit the make (Daszkowskii).

It is of equivalent importance to observe the fact that the business was ranked the previous tying with Chuck E. Cheese's in a study that was conducted by Brand tips on all consumer preference preferences among countrywide chains in 2009 2009. This arguably meant bad results for the company and strategic issue needed to be developed a few of which are still under current implementation as will b e discussed later in this newspaper (Datamonitror). In 2008, the Dominos used a diversification strategy through the advantages of non-pizza fare where they offered oven-baked sandwiches in four unique styles. The strategy was designed to contend with toasted submarine sandwiches prepared or made by Subways, a first food restaurant. One of the marketing strategies modified by the company in marketing these sandwiches was to provide them freely to people who were known as "Jared" which was a mention of one an employee of Subways, its targeted competition (Daszkowskii).



The reason for this survey is to identify tactical planning issues in Domino's Pizza Incorporation that your management or the business plans to attain or is already undertaking to achieve within a given span of another three to five years. The survey explores some of the primary goals of the business and develops a knowledge of how the company will probably achieve a few of its set goals or objectives in enough time span given. The business appointed a fresh chief executive officer in 2009 2009 as part of a strategy to develop its potential customers in the junk food string industry. Dominos Pizza Incorporation is currently facing a great deal of completion from well-established competitors like the MacDonald Incorporation and Subways, which are biggest players in the fast food industry. The efficiency and efficiency of the strategies presently performed by Domino's are essential in determining the dynamics of the business in future: this is the goal of this article as it seeks to provide an appraisal of the strategies and lastly giving the suggestions.

In order to develop a clear understanding of the strategies implemented by Domino's, the report develops an evaluation of Domino's company as compared to Pizza Hut. This analogy is essential because the two businesses operate in the same segment within the wider fast food industry. The newspaper finally highlights some advice that the company should adopt to be able to understand their prospects due to increasing competition. Some of the recommendations created by this are accountable to Domino's Pizza Inc. include redefining of in-store eating strategies in accordance with online sales that are growing significantly in today's global trend, capitalizing on socio-cultural shifts that are currently being experienced in america where it is majorly founded (Datamonitor).

In addition, the record recommends that the company should consider constant reinforcing and building up of its brand to be able to increase and be competitive effectively in the market, Domino's should also drive up a series of same-store sales to attain customer devotion and at exactly the same time reducing customer churn. The suggestions given are highly based on the current prospects on the market, as explained earlier, and the strategies that the business is executing or is yet to attempt.

Strategic Issues for Domino's

It is quite important to notice that some of the strategies implemented by the company started back 2009, as part of an ambitious program to increase its competiveness in the market and on the market as a whole. Among the strategies that the company adopted in 2009 2009 was the release of American Tale type of pizzas, that was significantly their niche line of pizza (Daszkowskii). These pizzas included over 40% of cheese over and above the normal or regular pizzas that the company used to sell at the time. In addition, the company made some additives, which made up of a variety of toppings. Within the same year, Domino's created the Bread Dish Pasta entree which was mainly a gently seasoned bread dish that was solely cooked with pasta inside. In another successive twist, Domino's released the Lava Crunch Cake dessert which was composed of warm fudge that was filed on crunchy chocolate shells (Young).

As a way of promoting the strategy above, Domino's flew in about 1, 000 cakes to deliver at their store, which is situated at Hoffstadt Bluffs Visitor center that is near Support St. Helens. The complete idea of producing these delicacies was an integral part of the strategy of diversifying the range of procedure of the business to add other competitive delicacies like other companies in the fast food industry business (Daszkowskii). Furthermore, the business made great changes to its pizza recipe: "from the crust up" this season, 2010, which ushered in new changes in the cheese, sauce, and dough that are used in setting up their pizza (Young). The release of this new formula was seen by many consumers as a correction to their early mistake where the company's product had been criticized in conditions of flavour by a lot of people. This had influenced the perception of the merchandise of the business and indeed the company affirmed this view in one of its advertising campaigns, which marketed the new recipe (Daszkowskii).

Currently, Domino's is planning to take on expansive strategies with strategies to open yet another 55 stores within this season at various tactical locations in its major regions of operation. The company aims to attain its needed development and development in the fast food industry amid its growing revenues that increased by 8. 1% in the first 1 / 4 of the entire year 2010 by itself. The programs were declared by the company at the beginning of April this year, 2010, after efficiently appointing a fresh Executive Vice Chief executive to control its supply string. Based on the company, the necessity to mange fully their supply chain was mainly because of the increasing need to control supply string routes which have been attributed as major contributors to boosts in operational costs in businesses, especially in the United States (Associated Press).

The company has performed strategies to improve supply string management and programs are currently underway to build up fully automated management systems to keep an eye on the resource chains of the business. The company bases this reason on the fact that its source chain contributed closely to the operational costs regarding to its financial survey for the year ended 2009. The costs resulted in a decrease of 1. 5% in company income to $1, 404. 1 million when compared to the income that the business earned in 2008 (Daszkowskii).

Domino's Company has also intensified its competitive strategy by driving their battleground to pay up press with the business's registration amounting to 94% against 92% from its close rival Pizza Hut according to the survey released by TNS Press Intelligence. According to the company analysis, the multimedia advertising strategy is justified because the consequences were evident on the market place. The Domino's TV adverts have been designed to be tactical and market-oriented, which places on the system the menu range and the quality. This simple truth is recognized by the TNS Marketing Brains who says such adverts could have an impact on the marketplace in terms of responsiveness of the consumers to the products of the company (Globaldata).

The company is making ideas to invest heavily in media advertising campaign with significant concentrate on content and creativity for their adverts. It's important to note at this point that the company has been targeting Subways in most of its advertisements with the comparability advert, which proved that many customers preferred products from Domino's than from Subways. As motioned before, this plan has been employed by the company for a number of years now and the company seeks to continue pursuing this plan as a way of eluding its competition (Daszkowskii).

In 2009, Domino's Pizza Inc. almost tripled the amount investment in internet marketing and the key focuses on being the cultural advertising like Facebook, College Humor, and MySpace. In future ideas for the company are to keep in this type of investment since it has witnessed incredible growth in sales predicated on this type of investment. In August, Domino's introduced an application that allows consumers to order for pizza immediately from their iPhone. Through the launch, the business recorded large downloads but according to the company's CEO, the business is currently commencing measures to boost the range of customers or users utilizing this exciting service (Globaldata).

Domino's Incorporation was a little bit behind in conditions of users making use of this service behind their bitter competitor Pizza Hut. Pizza Hut maintained over 100, 000 downloads of the application form in only two weeks after the unveiling, which was almost 24% more than what Domino's achieved. That is the primary reason that has activated the company's strategy of utilizing search engines such as Yahoo and google through the Ppc system, which the company hopes it will improve the customer traffic with their request download (Young).

In the past, most sales of the company have been recognized by the promotional activities that have supported every strategy that the company has ever introduced. Domino's happens to be counting on the promotional promotions it has implemented basing its argument on the idea that extensive deals will keep good fruits like the promotional marketing campaign that the business held following the unveiling of its "American Legend" area of expertise pizza in '09 2009, as previously mentioned (Daszkowskii).

Generally, the company's strategy are geared towards expansion and getting a competitive benefits in the junk food industry (Young). Domino's is also camping on the charges strategy that it introduced back in 2009 that was aimed to recreate some price-sensitive customers under their "barbell" technique. Furthermore, Domino's is likely to continue the advertising wars, which are aimed at targeting major competition like Subways and Pizza Hut.

Action Recommendations

It is important to consider Domino's SWOT examination before considering making any action suggestion for the business. In order to achieve workable strategies, it is essential a business or an organization consider its weaknesses, opportunities, dangers, and strengths. Some of the advantages that are noticeable in Domino's business are the fact that the business or incorporation possesses stores, that are positioned in over 60 countries and it has a well-established network interconnection for both sections of the business: company owned or operated and franchised. It has also been rated typically the most popular and leading pizza delivery companies within america borders and utilizes about 10, 500 employees (Young).

Domino's Pizza Incorporation has a solid brand equity, which gives it an overall advantage over other industry players in the industry. An added significant durability is the sensible marketing services followed by the company. These advertising strategies have contributed to its brand image in the company, which has an impact of instigating a sense of retention and differentiation. The business continues to adopt the effective source chains, which has given it an advantage in making sure effective supply of all its stores. The business also offers one major weakness, which is principally the weakening or decreasing bottom line credited to decline in sales and gradual growth (Datamonitor).

The company has development opportunities in India and China where they have hardly any franchises and stores generally. Furthermore, the company comes with an opportunity to present services in its existing menu especially pizza toppings and flavour additives that are given for a given region, this will give the much needed impetus. A number of threats can be found within the company and they are the increasing awareness of by consumers on the disastrous effects of fast food items which have high calories within them. The ongoing researches on ramifications of additives like flavours are yet other hazards for the Domino's. In addition, medical sector has extended to criticize the junk food products on grounds that they are saturated with substances like sugar, oils, fats, and sodium: this is constantly on the pose serious threats for the future of the business (Young).


Having considered the SWOT research above, it is now possible to give the following tips to the business. First, the company should concentrate on increasing its network coverage in India and China to be able to seize the looming opportunity in both appearing economies. India and China take less than 2% of the total stores under the Domino's company (Globaldata). The amount of stores should be risen to more than 20% in the next three years to be able to meet the company's enlargement strategy that it is currently pursuing. Second of all, Domino's should target completely on customer commitment through insisting on quality and ensuring that all stores deliver the best delicacies. These recommendations on quality should be adhered to strictly if at all any good email address details are to be performed. These two tips are based on the reason why that the amount of competition in the fast food industry keeps growing progressively (Young).

Thirdly, Dominos Incorporation should think about utilizing their intelligent advertising ways to focus on all the players or opponents on the market apart from only concentrating on one competitor, Subways. Focusing on one competition may have serious repercussions to the company especially where set up businesses like Macdonald may come up with ingenious strategies which may affect the stability of the business and growth generally (Datamonitor). Fourth, Domino's should enhance their innovative strategies they have used their online marketing and offering. Pizza Hut performed better when compared to Domino's company in conditions of online rewards despite having invested almost the same amount of money in their online services section.

The current operating company hybrid model is projected to be at 70% franchised while 30% of the stores are possessed. The number should be fine-tuned to reduce operational costs by increasing the amount of franchised businesses to about 85% to be able to reduce the overall operational costs. Fifth, Domino's Inc should give attention to enhancing its brand image because this is one of its advantages; this is achieved through ongoing strengthening and reinforcing their brand in the market (Young). One essential factor that should be carefully taken into account by the business is the highly strong socio-cultural change or the changing standards of living of the individuals in america and the across the globe as well. Their products should echo these changes if the business is to achieve continuity. Companies like MacDonald Incorporation focus on social changes that occur and eventually train their employees to be able to meet up with the needs of changing standards of living (Datamonitor).

In regards to the tips above, Dominos Incorporation should focus its attention on online sales and utilize this impact to redefine their own in-store eating strategies to match the expansion in online sales as mentioned above. The usage of internet in the world today is increasing at a faster rate and the growth in online sales of the business which may have been noted can only be reinforced through going for a keen go through the in-store dining strategies. Finally, the Domino's should look at available options in their customer combine or churn: the company should actually reduce it to be able to remain competitive and realize its strategies and aims as well (Daszkowskii).

Achieving goals requires a definite avenue that is plainly built on the talents and focused on the opportunities of the business (Young). The suggestions given above reflect on the current strengths and opportunities of the business: they may be aimed at overcoming any dangers and the weaknesses that the business faces presently.


It is visible at this point that Domino's Pizza Incorporation has a good brand image, which is one of its strongest points. In addition, the organization has already established a good record despite a few lawsuits and criticisms on taste as stated above. Domino's advertising strategies are very effective and have worked to improve the sales of the business as well as its competiveness in the market. However, the business faces major risks that might put the continuing future of the company to dire test. The sociocultural changes that continue to occur in the world today require that the business make swift changes and constant monitoring of the lifestyles of the individuals in various elements of the planet: especially where they operate. There degree of competition in the fast food industry is growing more robust by day and maintaining dedicated customers is the best technique for any business in the industry today.

Appendix A: External Analysis

Social changes

There are changes in life-style of the people in america for example which continues to impact on the company; this also happens in the areas as well.

Technological changes

The need for online sales is currently on the increase.

Economic trends

The company underwent the 2008 tough economy, just like a great many other companies, but remained stable.

The progress rate is expected to increase in the near future to about 20. 6 % (see Global data)

Political/ regulatory trends

Given the fact that the company manages in many countries, political interferences are common. The health issues have also been affecting the company.

Potter's forces


Other substitutes to pizzas are available even in restaurants which affects the business.

Threats of competitors

There are numerous competitors available including companies like Subway, MacDonald, and Pizza Hut.

Appendix B:

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