Economics Essay: Dominos Business Study In India" (54 Characters)

Locations and target customers

Discuss about the Economics Business Study Dominos in India.

This particular study has provided an in-depth overview on the importance of analyzing the business environment for running an organization successfully. Dominos India has been selected as the chosen company in order to evaluate the entire business process in the current market. Dominos is one of the largest pizza delivery centers occupying a predominant place in the international market. This particular study has focused to highlight the business environmental analytical strategies and policies of dominos India. Started their journey in the year 1995, this particular company has expanded their wide spread wings in multinational countries. In 1996, dominos has launched their wings in India in order to draw the attention of Indian customers from different geographical boundaries. As per the report of 2010, this particular company is considered as one of the India’s fastest growing food delivery companies occupying a predominant place in 230 cities of India (dominos.co.in, 2017). The company has placed a recognizable place in organized pizza market with 70% market share.

In most of the metropolitan cities of India such as Delhi, Chennai, Bangalore, Pune, Kolkata, Abohar, Agra, Ahmedabad, Bijapur, Bijnor, Boisar, Cochin, Cuttack and so many are possessed with the Dominos food center (dominos.co.in, 2017). The primary target customers of Dominos include young boys and girls, government service holders, businesspersons, private service holders and so many. Among the 230 cities of India, most of the target customers of this organization belong from Delhi, Chennai, Bangalore, Pune, Kolkata locations.  ‘Yeh Hai Rishton Ka Time’ is the key tagline of Dominos with the help of which the business experts have drawn the attention of customers of various geographical boundaries.

The primary vision of Dominos India has focused on “exceptional people on a mission to be the best pizza delivery company in the world!" After launching their entire process of business in the various geographical areas of India, the service providers have aimed to deliver superior quality of products by maintaining its delicious tastes in affordable price range (Adeoye & Elegunde, 2012). People from average level of income can easily purchase the products and services of Dominos. India being a developed country is constituted with the inhabitants of average income level. Therefore, the business experts have decided to implement moderate cost strategy with the help of which low cost customers can be attracted for purchasing the products and services of Dominos.

Mission and Vision of Dominos India

As per the current scenario, Dominos has become a major threat for most of the contemporaries. MacDonald, KFC, Pizza Hut, Telepizza, The Little Caesar’s are the major competitors of the Dominos. The business strategy of Pizza Hut has become a major threat for Dominos as Pizza hut has drawn the attention of large number of Indian customers by providing superior quality of products and services.  The entire process of business of Pizza Hut has been widely spread in most of the cities of India including Delhi, Chennai, Bangalore, Pune, Kolkata, Abohar, Agra, Ahmedabad. As a result, Dominos has faced a major competitive market for maintaining organizational image and reputation (Bosdriesz et al. 2012). In addition, the service procedure of Dominos was very effective based on which the customers could enjoy the essence of their food sitting at the drawing room. In a word, the home delivery process of Dominos is very much fast and systematic. Customers do not have to wait for a long time in order to receive the service process of Dominos. However, recently it has been observed that Pizza Hut has also changed their market policy in order to give a major threat for Dominos. The service providers have also launched the home delivery process for providing an effective service to the customers (Budhwar & Debrah, 2013). As a result, the customers have received ample options for choosing their products from different food centers. Therefore, the marketing managers of Dominos have decided to implement innovative business strategies and policies for maintaining organizational image and reputation so that customers do not have to think twice for using the products of dominos.

As per the business scenario, the economy of scale is highly dependent on the size, output or scale of operation, which is based on the cost per unit.  Economy scale varies from organization to organization (Cant & Wiid, 2013). Most of the large producers tend to fix their production while maintaining a short-term business. On the other hand, variables in the production cost are highly dependent on the long-term business. This particular part has focused to highlight the production cost and scale strategy of Dominos.  

A large number of branches of Dominos are situated in different places of India. The business experts have to invest a fix amount of money behind some of the major equipments (Daniel, Cieslewicz & Pourjalali, 2012). The equipments include house rent, bill of electricity, cost of physical resources and so many. Therefore, the company has to bear these costs effectively while running the entire process of business. This particular short-term cost can never be avoided even if the company’s revenue growth becomes decreased for this particular year. In this kind of situation, the cost remains fixed (Döckel & Ligthelm, 2015). In addition, it has also been observed that the production cost has been fixed in terms of short-term business process. The production manager has to pay the same cost to the raw material suppliers’ even rate of product selling decreases for that particular year. Therefore, it can never be denied that company like Dominos should concentrate on the quality and reliability of their products so that the chances of revenue loss can be reduced (Franceschini, Galetto & Turina, 2013). At the same time, it cannot also be denied that the revenue growth of Dominos in the current market scenario is high. As per the revenue growth of 2015, this particular company has received 20.819 billion per year that has created a high market demand.

Location of the Competitors

Production cost is variable in terms of long-term business. The production cost of Dominos varies on three major factors. With the long-term business process, the cost of raw material becomes flexible time to time (Haidar, 2012). With the upgrading progress of raw material cost, the business experts of Dominos have to increase their operation cost as well. As a result, it has a major effect on the business profit and revenue growth (Hoffman & Bansal, 2012). If the operation cost becomes high, the company has to compromise with the profit making level as well. Therefore, the business experts of Dominos always intend to maintain a good relation with the distributors so that the organization can receive a good raw material from the suppliers.

Depending on the market demand, the product cost varies. For an example, India is currently possessed with high range of market demand where a large number of customers are craving for purchasing the products of dominos. In this kind of situation, the business experts have decided to fix the price range of Dominos in moderate level so that both the low cost customers as well as Premium customers can equally get attracted towards dominos product (Hutchison & Sushko, 2013). On the other hand, if the market demand would be low, the business experts could have used another business strategy to draw the attention of customers. Therefore, the product cost is highly dependent on the current market demand.

On the other hand, product cost varies with the rapid progress of labor cost as well. With the dynamic progress of business, the needs and demands of the labors are changing gradually. Dominos is not exceptional to that. If the power of labor becomes very high, the company has to increase the labor cost (Kazlauskien? & Christauskas, 2015). In India, the scenario is completely different. As per the current scenario, the power of the labor is low as a large number of people have to through the situation of unemployment level. However, due to the low labor cost, the business experts of dominos India can maintain an affordable price range to the products (Kolapo & Adaramola, 2012). With the help of this affordable price range, people from different geographical boundaries are successfully able use products and services of Dominos. Therefore, product cost and scale is highly dependent on the market demand, operation cost, supply chain cost, raw material cost and labor cost of the particular company. Dominos is not exceptional to those particular situations.

Production cost and sales

Overall stability of the political system India:

Liddle (2014) opined that it is undeniable that India is not very much stable in their governmental growth due to the instable progress of politics. Due to the unpredictability of foreign investment in India and tax issues most of the business organizations have to face innumerable challenges for running their entire process of business successfully. Most of the foreign direct investors tend to show their intense dissatisfaction for investing money in Indian companies. On the other hand, Sannajust (2014) has differed the point of view of previous eminent scholar. As per the point of current author, the current market scenario of India has been changed drastically. The tax issues and government trade regulations have become very much flexible right now with the help of which the foreign businesspersons of different business organizations have showed their interest for launching their business in India. Dominos has followed the same (Sakarya et al. 2012). This particular business organization has expanded their process in various cities of India. This particular country being still developing is possessed with large number of unemployment status. As a result, people from different geographical boundaries with high skill and competency level tend to apply for the different posts.

Srinivasanc et al. (2013) stated that the political status of India is not very much influential. The government never tends to show their interest for imposing any decision on the employees. Therefore, the business experts have immense opportunities for recruiting the employees as per their level of skills and competencies. As a result, people having skills and efficiency get the scope to become the part of business organization. While recruiting the employees of Dominos, the human resource managers never intend to focus on the cultural and religious backgrounds. Skills and competencies becomes the first priority for this particular organization.   

The general level of inflation, unemployment, average interest rate of the countries

As per the current market scenario, the inflation level of Dominos is low. The marketing managers tend to follow low cost strategy with the help of which customers from average income level can purchase the products and services of Dominos. At the same time, it is also undeniable that Dominos is possessed with a high range of revenue growth. Therefore, the production managers are able to use the advancement of technology while manufacturing products and services. Consequently, sufficient number of products can be manufactured in limited time. As a result, the service providers are successfully able to maintain a balance between customers supply and demand.

On the other hand, in comparison to the current competitive market, the demand of Pizza Hut is also very high. Therefore, the customers get ample options to choose their products and services. The customers never tend to show their interest for purchasing products and services in high cost.

India is possessed with excessive unemployment status. As per the current market scenario, the number of skillful candidates in India is high in range in comparison to the number of business organizations. Therefore, Dominos would not have to invest a large amount of money in labor cost due to the excessive rate of unemployment status. In this kind of situation, people from different geographical boundaries tend to apply for the different organizational posts. After expanding their entire process of business in various geographical areas of India, the human resource managers have immense opportunities to hire competent employees for their organization in affordable cost (Trequattrini, Russo & Lombardi, 2012). Therefore, the business experts are successfully able to effective business strategy and policy for the business growth. On the other hand, as per the organizational business strategy, the managers of Dominos India tend to follow participative leadership style at the workplace with the help of which the organization is able to take collective decision.  

Dominant has already occupied a recognizable place in the global market. Therefore, this particular organization has already expanded their widespread wings all over the World. The business experts do not have to maintain export system for raising the economic growth of Dominos. Rather, Dominos India likes to import the raw material from foreign such as breads, equipments, finance and human resource in order to reduce the product cost for the low cost consumers.

As per the Macro-economic condition of Dominos of India, it can be evaluated that this particular food center has immense opportunity for expanding their entire process of business in multinational countries (Trequattrini, Russo & Lombardi, 2012). In addition, this particular business organization is very much stable in India due to the stability of current political conditions. At the same time, this particular country has become very much advanced in technology. Therefore, people from different remote areas can use the products and services of Dominos sitting at their home. As a result, the revenue growth of the Dominos will be raised expectedly. The business experts would be able to involve more employees within the process of business for maintaining a balance between customers’ supply and demand.

References

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