Dominos Pizza Company Analysis - Paper Example

Dominos has an approximate of 13,200 sites in over eighty markets thus it stances as the second biggest pizza restaurant chain in the global competitive market. The pizza corporation was founded in 1960 whereby it began by making door to door deliveries and a substantial amount of their sales was accrued from carryout clients. Despite the fact that the organizations brand is internationally recognized, the corporate focuses on catering to the needs of the local customers and community that the Dominos corporate is established in, and conduct business via the large network of franchise proprietors and stores that are owned by the company. Averagely, it is reported that Dominos pizza corporate make sales of over 1.5 million pizzas per day throughout their global networks.

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The corporate business model is significantly featured by establishing straightforwardness strategies that adequately satisfy the clients. In that, the corporate has developed and established a culture that ensures customers are served quality food at a price that is competitive, provides easy accessibility in the ordering of food, and renders efficient services that are aided by technological innovations. In essence, the company is freshly made and distributed to other shops. The revenues and earnings generated by the organization are mostly accrued from charging royalties for its licenses. In this case, the royalties refer to the ongoing sales percentage charges used for Dominos brand marks. Furthermore, these revenues and earnings are accrued from the sale of foodstuff, tools, and commodities to franchisees particularly in the U.S.A and Canada, therefore, enabling operations in the corporate-owned stores. On the other hand, the franchisees earn their revenues by making pizza sales and other complementary products to their local clients. Internationally, the Dominos pizza corporate maintain their markets by granting geographical rights to Domino pizza original brand to master the franchisees. Thereby, the master franchisees generate their profits by operating the pizza stores and frequently they sub-franchise and sell ingredients and tools to the sub-franchises. Therefore, within this market platform and networking, it is observed that every party is benefiting including the consumers who can buy their products with convenience and it is economical.

This business model potentially enables the Dominos corporate to accrue huge returns for their franchise proprietors and the company-owned shops. In addition, the franchise significantly benefits the organization by establishing consistent royalty payments and supply chain income stream with moderate monetary expenses. The companys statistics indicate that Dominos Company has faithfully returned money to their shareholders via dividend expenditures and share buyback from when the company was legally recognized as a public trading company.

Vision

The vision of the company is to be the best operator in its systems incorporating the best talents and creativity. By doing so, the corporation aspires to be number one in producing quality pizzas as well as satisfying the needs of its chain systems and the end consumers.

Mission

The organizations mission is to strive to maintain high standards in its operations particularly on delivery and providing the experience of a qualitative product with proficient customer service. The mission enables the company and its networks to make huge sales and establishes customer loyalty.

The values and objectives

The most paramount objective of the company is to ensure that each employee, employers and the customers are treated with respect and care so as to reduce both internal and external conflicts at work. It also values its creativeness, unique strategies and providing quality food and products to its target market (Kopaneva, 2013).

In this case, the firm values delivery services by providing the fastest means of delivery in the world and distributing the global chain. Therefore, this aspect significantly differentiates Dominos corporate from other companies.

SWOT

Strengths in Dominos Pizza

The company has a strong brand recall as it has one of the best advertising strategies. The company has regular advertising that shows taglines that are enticing for instance 30 minutes nahi to free. This act of incorporating an aggressive marketing strategy has helped to create awareness as well as retain a promise to the customers for the retention of the brand in the market.

The company also has a spectacular channel network with over 9,000 franchises as well as outlets that are company owned; this has helped the company to spread to over 60 nations globally. The companys menu is broad and deep so as to attract people from both middle and lower class. Domino has also implemented prices that are low so that families and other interested parties may choose Dominos Pizza at any time. Dominos flaunts a quick service provision than the customers may expect, this serves as a delight for the customers and provides a basis for differentiation from other companies in the market.

The company does not identify itself with high-class amusement or ambiance in the premises establishment and therefore the cost that the dealers incur is relatively lower thus reasonable prices for the customers. Dominos Pizza has engaged in the campaign for health awareness amongst the consumers, they have therefore come up with healthier alternatives by changing the fats they use to make the dough.

Dominos Pizza has one of the most efficient supply chains thus making it possible for them to offer quicker services to the customers. This has made them one of the most preferred companies since they can provide the services within 30 minutes especially for home deliveries (David, 2012).

Weaknesses in Dominos Pizza

Operations become a major setback due to the high number of franchised stores that lead to difficulties in handling the operations. The aspect of quality control also becomes challenging and this led to the closure of some of the outlets thus negatively impacting on the image of the brand.

The levels of sales have decreased in the mature markets due to the increment in health consciousness among the population. This has led to a decline in the revenue collected by the company and thus affecting the company entirely.

There is low staff retention in the company due to the failure of a comprehensive training and development program. This has impacted negatively for the company as the employee's employed change jobs fast leaving Dominos Pizza once they find that they cannot handle the pressure from the working environment.

There is a smaller ratio of Dominos Pizza consumers in comparison to their number of outlets leading to lower income expected. The other problem associated with their outlets is that most of them are located in malls where their customers cannot secure comfortable places to sit when eating.

Opportunities in Dominos Pizza

There is sufficient room for market expansion as the company can expand their operations to developing markets as the developed markets continue to mature. The companys objective should be targeting the developing market economies as their taste is developing as well especially when it comes to the food industry.

Penetration is another opportunity for Dominos as they can strengthen their outlet networks in the current market. This can lead to an increase in their revenue margins and help the company expand globally.

The health conscious diet options that they are providing that has low fat with new flavor additives will lead to a tremendous growth in their revenues.

Restaurants that are Dominos Pizza branded in the cream areas would help the company in their brand recognition as well as allow room for more customers especially the ones who like eating in plush joints.

Threats in Dominos Pizza

There is a high rate of direct and indirect competition from both local and international competitors. Dominos Pizza faces broad competition from companies like US Pizza and Pizza Hut among others while international competition comes from companies such as KFC and McDonalds where customers may prefer burgers over pizzas.

Transition and change in the consumer feeding habits; the government and NGOs have engaged in endless campaigns on health awareness issues and people have become more aware of the products they should consume and ones to avoid. This has affected most of the junk food outlets where Dominos Pizza has fallen victim.

The cost of raw materials in making pizzas has consistently increased therefore the costs associated with the pizza chains have gone up plus the aspect of competition has limited the options available for the company to influence their prices. This has made the management of the cash flows difficult

References

Kopaneva, I. M. (2013). Employee constructions of organizational mission and vision (Doctoral dissertation, Washington State University).

David, F. R., & David, F. R. (2012). Strategic management: A competitive advantage approach, concepts and cases.