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About Domino's Pizza

Discuss about the Gaining And the Sustaining Competitive Advantage.

Strategies form an important part of the overall business plan of the various companies as well as business organizations. Strategies can be defined as the particular set or plan of actions which the various companies or the business organizations implement and take the help of in order to achieve their desired goals or objectives (Rothaermel, 2015). It is to be noted that the strategies can be long term or short term depending on the requirements as well as the needs of the company or the business organizations (Tanwar, 2013). The overall growth as well as the development of the company or the business organization depends on the kind of strategies which they take the help of. On the other hand, a mistimed or ill-advised strategy can hamper the prospects of the company in the longer run in a significant manner. Therefore, it is advised that the various companies as well as the business organizations should take into consideration their needs as well as requirements before the making and the implementation of a particular strategy. Strategic management , on the other hand, can be defined as the effective management of the various strategies which the various companies or the business organizations develop and implement in a bid to out-rival their competitors and also to expand their business (Tanwar, 2013). This particular report will analyze the strategic managementpolicies of the company Domino’s in the country of New Zealand. The purpose of this report is shed light on the internal as well as the external business environments of the organization Domino’s in the nation of New Zealand and also the strategies followed by them for the process of their business in this particular nation. The limitation of this report can be said to be the fact that it sheds light only on the business operations of the company Domino’s in the nation of New Zealand and not on a worldwide basis.

The company Domino’s Pizza, Inc was founded in the year 1960 in Michigan, USA by Tom Monaghan (Dominos.co.nz, 2018). The company is an “American pizza restaurant chain” and in the year 2012 became the largest pizza restaurant chain in the world in terms of the annual sales as well as the annual revenue which the company generated (Dominos.co.nz, 2018). It is to be noted that in the year 2003 the company Domino’s Pizza Inc., started their first outlet in the countries of Australia and New Zealand (Dominos.co.nz, 2018). The company has gone on to expand since then in the nation of New Zealand and is currently the largest pizza chain in the nation (NZ Herald, 2018). Another interesting fact to be noted about the company in the land of New Zealand is that the company uses “drone-delivery” system in this particular country in a bid to cater to the needs as well as the requirements of the customers in the best possible manner.

Mission and Vision of Domino's Pizza

It is to be noted that although the company was originally founded in the land of the United States of America yet presently the company boasts of more than 8,200 outlets in the various nations of the world with more than 1,000 outlets in the nation of India itself and an annual revenue of more than “$1.4 billion in gross income” (Dominos.co.nz, 2018). According to the Forbes Magazine (2018), the company is the 86th largest company of the world in terms of the revenue which it generates. The main business of the company is in the genre of the pizza industry and it is interesting to note that the company Domino’s was ranked by the magazine “Pizza Today” as the "Chain of the Year" in the years 2003, 2010, and 2011 (Dominos.co.nz, 2018). Some of the financial statistics of the company Domino’s Pizza Inc.

The operations of the company Domino’s in the nations of Australia and New Zealand is controlled by “Domino's Pizza Enterprises Limited” and according to a recent data the organization has more than 1900 in these two nations itself. In addition to the pizzas which they offer to the customers the company also offers “Oven Baked Sandwiches”, chicken wings, lasagna and other products as per the preferences of the customers of the nation of New Zealand (Dominos.co.nz, 2018).

The mission of the company Domino’s as listed by its official website is to “Maintain high standards of the international chain of pizza delivery and provide the experience of an excellent product with excellent customer service. Exceptional People serving the best pizza in the world” (Dominos.co.nz, 2018). The vision of the company, on the other hand, is to become the largest pizza chain not only of the nation of the USA but also of the world and at the same time to provide the best quality services to the customers from the different parts of the world (Dominos.co.nz, 2018). The company follows a wide range of values for the process of their business not only in the nation of New Zealand but in the other nations of the world as well. Some of the key values which the official website of the company claims that the company follows are listed below-

  • Treating the customers as well as the individuals associated with the organization in the same manner as the organization wants itself to be treated (Dominos.co.nz, 2018).
  • Providing the best quality food items to the customers at the lowest possible price (Dominos.co.nz, 2018).
  • To measure, manage as well as share the things which are important (Dominos.co.nz, 2018).
  • Taking the help of strategies as well as individuals who would enable it to “think big and grow” (Dominos.co.nz, 2018).
  • Incentivize the things which need to be changed within the framework of the organization (Dominos.co.nz, 2018).
  • To set up high standards and to inculcate an environment of continuous learning wherein the individuals associated with the organization would be able to achieve the goals and the objectives set by the organization (Dominos.co.nz, 2018).

The organization tries to take the help of a continuous learning culture as well as collaborative culture wherein all the individuals associated with the organization would get equal opportunities for growth. This particular work culture not only helps the organization for the achievement of the goals as well as the objectives set by them but at the same time helps in the achievement of the individual goals and objectives set by the individual employees who are associated with the organization as well.

Values of Domino's Pizza

In terms of human resources the organization is one of the largest recruiters of the world and every year recruits thousands of new employees from the different parts of the world with the objective to meet the increasing workload which the organization is having on the score of its increasing business in the different nations of the world. The recruiters of the organization during the process of recruitment and selection thus try to recruit the kind of individuals who show a capability to multi-task, are comfortable to work in different rotational shifts, have good communication skills and others (Slack, 2015). In short, the major focus of the recruiters during the process of the recruitment is to hire the kind of people who are likely to contribute a positive value towards the organization.

The organization under discussion here has been able to attain a significant amount of competitive advantage in the fast food industry in the recent on the score of the various factors. Firstly, the excellent taste of the pizzas as well as the other food items offered by the company has contributed in a significant manner towards the attainment of the competitive advantage which the organization have currently over its rivals operational in the same field of business (Teeratansirikool et al., 2013). In addition to this, the long past history of the company as well as the positive brand image which the company enjoys also contributes in a significant manner towards the competitive advantage which the company have at the current moment (Verbeke & Tung, 2013). Furthermore, the use of the recent technologies as well as innovative for the conduct of their business as well as the process of effective management have also contributed much towards the competitive advantage which the company holds over its rivals.

  • The positive brand image which the company can be seen as one of its primary strengths.
  • The company has been operational for more than 50 years and is operational currently in the majority of the nations of the world. This is generally seen as one of the major strengths of the company (Dominos.co.nz, 2018).
  • The excellent taste of the pizzas as well as the other food items which the company offers to the customers is another key strength of the company.
  • The company follows the strategies of cost leadership as well as product differentiation for the process of their business operations in the different nations of the world including New Zealand. This has helped the company in a significant manner not only to expand its business in the other nations of the world but at the same time to gain competitive advantage as well.
  • The primary weakness of the company can be said to be fact that the company depends heavily on the various kinds of items for the process of their business operations and it has generally been seen that because of the economic recession which the world is facing at the current moment the customers are spending less on the fast food items and this has affected the business of the company in a negative manner.
  • It is generally seen that the company has failed to maintain adequate hygiene as well as safety regulations in its various international outlets and this particular fact has affected the prospects of the company in a significant manner.
  • The organization can enter into collaborations with the other soft drink as well as beverage companies and others with the objective to not only enhance the prospects of its business but at the same time to offer a wide range of products to the customers, which will further enhance the prospects of the concerned company (Rothaermel, 2015).
  • The use of the recent innovations as well as technology for the process of their business operations in the different nations of the world acts an opportunity which the company can utilize to further enhance the prospects of its business operations.
  • The company can also design the food items offered by them as per the area or the nation in which they are operational and this will not only enhance the customer base which the concerned company has but at the same time will significantly enhance the annual profit gained by them.
  • The nation of New Zealand is one of the largest democracies of the world and enjoys a very stable political climate with minimum amounts of political unrest as well as political struggles.
  • The government of the nation takes active initiatives for the promotion of trade as well as commerce.
  • The nation of New Zealand is the host to some of the largest companies and business organizations of the world because of the stable political environment which it enjoys and also on the score of the initiatives taken by the government of the nation.
  • The political associations of the nation with the other nations of the world like the United Kingdom and others provides a wide range of trade as well as commerce opportunities to the business organizations of the world which if effectively utilized can lead to the overall growth and development of that particular business organization (Mckeown, 2012).
  • Therefore, it would be apt to say that the stable political climate of the nation of New Zealand actually acts an opportunity for the company Domino’s which if effectively utilized can lead to the overall growth of the concerned company.
  • The nation of New Zealand has one of the most stable economies of the world because of the fact that the nation is dependent on both the agricultural system and the other modern industries.
  • The economy of the nation is the 53rd largest one of the world in terms of the GDP of the nation (Teeratansirikool et al., 2013).
  • The growth rate of the economy of the nation is 3.5% whereas the inflation of the nation is only 1% (Teeratansirikool et al., 2013). In addition to these, the unemployment rate of the nation is only 4.5% which is one of the lowest ones of the world (Teeratansirikool et al., 2013).
  • The economic recession which has adversely affected the economies of the various nations of the world has very little effect on the economy of the nation under discussion.
  • Therefore, it can be said that the economic framework of the nation of New Zealand acts an opportunity for the company Domino’s since the concerned company can utilize the stable economy of the nation for the process of their business.
  • The society of the nation of New Zealand is a multicultural one and the nation is the home to the people from the diverse nations of the world.
  • The people of the nation generally like to try out new food items and since the majority of the population of the nation belongs to the employed section thus it is more likely that they would be willing to spend on the various kinds of food items offered by the company under discussion (Slack, 2015).
  • Pizzas and other food items offered by Domino has formed the major food items consumed by the people of the nation for a very long time and thus it is more likely that they would enjoy the food items offered by the company under discussion here.
  • Thus, it can be said that the social factors of the nation of New Zealand act as an opportunity for the company Domino’s.
  • The nation of New Zealand is one of the most technologically advanced nations of the world and it is the end result of this particular fact that the nation is the home to some of the largest business organizations of the world.
  • The people of the nation generally like to take the help of the recent innovations as well as technologies in their day-to-day lives with the tool of social media being one of the most commonly used ones among them (Verbeke & Tung, 2013).
  • Thus, it would be apt to say that the technological environment of the nation of New Zealand acts an opportunity for the company Domino’s. It is a reflection of this particular that the company takes the help of the latest technology for the process of their business. The use of social media for the process of business and the use of the drones for the delivery of the food products ordered by the customers are two instances of the use of recent technologies by the company for the process of their business operations.

It is to be noted that the food industry in which Domino’s Pizza is a very saturated one and the choices as well as the loyalty of the customers are very fickle. There are various factors which influence the choices of the customers. The primary factor which the various customers take into consideration is the taste factor. It is to be noted that the quality as well as the taste of the pizzas and other food products sold by the company Domino’s Pizza have been much appreciated by the various customers in the nation of New Zealand. Moreover, the saturation of the pizza as well as the food industry itself is a huge plus point for the company Domino’s Pizza as that discourages the various companies and the business organizations to enter in this particular industry. The concept of the “product differentiation” is another factor which favors the company Domino’s Pizza (Mckeown, 2012). It is to be noted that the company Domino’s Pizza is a well established one and much appreciated by the customers. The company as well as its products offered by them has been much appreciated by the customers. Another fact which the new entrants need to take into consideration is the factor of cost differentiation as well as capital requirements (Lo, 2012). It is to be noted that the various new entrants in the market will have to take into consideration various factors like the cost of the setting up of the business and others and thus it would be very hard for them to offer their products at the same price which will be on part with the price of the products offered by the company which is a well established one in the land of New Zealand (Lo, 2012). It is to be noted that the company Domino’s in a bid to attract as well as retain its customers in the land of New Zealand follows an effective pricing strategy by means of which it provides pizzas and other products to the customers at a relatively very low prices.

Competitive Advantage of Domino's Pizza

According to Porter, “supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. ... Furthermore, a strong supplier can make an industry more competitive and decrease profit potential for the buyer”(Lee, Kim & Park, 2012). It is to be noted that the company Domino’s Pizza operates in the food industry and therefore the various suppliers exerts a considerable influence on the company not only in the nation of New Zealand but worldwide in general.  It is to be noted that a decrease in the amount of raw materials offered by the various companies related to the company Domino’s is likely to adversely affect the productivity of the company as well as the products offered by the company to its customers (Carroll & Buchholtz, 2014). It is to be noted that the since the company Domino’s operates in the food industry therefore most of the raw materials are procured by the company from the local markets itself. Therefore, if the prices of the raw materials in the local market are increased or the shortage of the raw materials in the local market is likely to adversely affect the business of the company Domino’s Pizza (Carroll & Buchholtz, 2014). It is to be noted that if the bargaining power of the customers is high then that is likely to act as a threat to the company as the customers will have more options to choose from. Therefore, in a bid to reduce the bargaining power of the suppliers the company Domino’s uses a number of suppliers for the procurement of the raw materials. Therefore, a high level of competition among the various suppliers is likely to reduce their bargaining power considerably.

The company Domino’s Pizza Inc. faces a significant amount of threat on the score of the bargaining power of the buyers as the choices of the customers are very dynamic and they change their needs as well as requirements on a constant basis. The choices which are available to the customers in the present day environment of New Zealand are more varied in comparison to the ones which they had a few years back. It is to be noted that it is very easy for the customers to switch from one company to another and there are no significant costs involved in the process (Fassin, 2012). Therefore, it is often seen that many customers often switch from the company Domino’s Pizza to others in a bid to try out new options. It is to be noted that in a bid to reduce this, the company Domino’s Pizza follows a low price strategy while keeping the quality of its products very high. In addition to this, in order to attract more customers and also to retain them the company provides discounted offers to the customers.

Factors Affecting Customer Choices

It is to be noted that the if similar kind of products are available to the customers then the business of a particular company like Domino’s Pizza Inc is likely to get impacted in a negative manner. Therefore, “the threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry”(Lee, Kim & Park, 2012). Therefore, it would not be too far-fetched to say that the company Domino’s Pizza faces a considerable amount of threat as there are a number of companies in the nation of New Zealand which provides the same products to the customers.

The company Domino’s Pizza Inc also faces a considerable amount of threat on the basis of the rivalry from its competitors. The main rivals of the company Domino’s Pizza in the nation New Zealand are Pizza Hut, McDonalds, Hell Pizza, Eagle Boys and various others (Walters, 2018). Therefore, it would not be too far-fetched to say that the company Domino’s Pizza Inc faces a considerable amount of threat from its various competitors. However, it is to be noted that the company Domino’s Pizza Inc has developed various strategies in a bid to counteract the threat which it is facing from its rivals by “building a sustainable differentiation”, providing better as well as quality services to the customers and others.

It is true that the company Domino’s is one of the largest ones not only of the nation of New Zealand but also of the world however there are certain key areas in which there are scopes for improvement. For example, in order to reduce the high level of competition faced by them in the business market of the nation of New Zealand the company can take the help of various kinds of strategies like cost leadership, product differentiation and others. The strategy of cost leadership will enable the company to offer superior quality of food products to the customers from the different parts of the nation at very affordable prices. In addition to this, the use of the strategy of product differentiation is likely to help the concerned company to the customers which are different from the ones that are being offered by the other companies operational in the same field of business. Furthermore, the use of the strategy of product adaptation is also likely to help the concerned company in a significant manner since it will help the concerned company to manufacture products as per the demands and the requirements of the customers. Moreover, the use of social media and other electronic media for the process of their business is also likely to help the concerned company to further enhance the prospects of their business in a significant manner.    

Supplier Power

The various stakeholders associated with a particular business organization are the individuals or the groups of individuals who not only take an active interest in the business processes of the concerned business organization but at the same time contribute in a significant manner towards the business of that particular organization (Hitt, Ireland & Hoskisson, 2012). Therefore, it would be apt to say that within the context of the present day business world the various stakeholders have emerged as an integral part of the various business organizations and thus it becomes important for the various business organization to convey the information about the strategies as well as the policies which they are about to implement to their key stakeholders (Hitt, Ireland & Hoskisson, 2012). The company Domino’s has various kinds of stakeholders who are associated with the concerned company and they can be broadly grouped into two categories, namely the external stakeholders and the internal stakeholders. The external stakeholders of the company include the various suppliers, customers, creditors, government of New Zealand, society and others to which the concerned company is associated whereas the internal stakeholders include the employees, the owner of the company, the managers, directors, executive teams and others associated with the company.   

In the contemporary business world it is generally seen that the various business organizations need to engage the diverse stakeholders who are associated with their business organizations in the various strategic decision undertaken by them (Hill, Jones & Schilling, 2014). This particular policy is being followed by the company Domino’s as well because of the various kinds of benefits which it renders to the concerned company. Some of the major benefits which the use of this particular process renders to the concerned company are firstly it not only helps in the process of the resolution of the various kinds but at the same time helps in the avoidance of various kinds of conflicts (Hill, Jones & Schilling, 2014). As has already been mentioned that the stakeholders are the most important part of the various business organization and it is important for the various business organizations to convey information about the relevant strategies as well as policies adopted by the concerned organization to them. Therefore, if the organization is able to effectively engage the various stakeholders who are associated with the organization then the process of conveying information to them becomes relatively very easy for the concerned organization to the shareholders. Secondly, the various stakeholders associated with a particular organization are the ones whom the decisions of the concerned organization affects the most and thus the process of stakeholders engagement becomes very important in this particular context.

The effective engagement of the stakeholders is very crucial for the success of the recommended strategies which have been listed above. The company Domino’s for the effective management of the various stakeholders who are associated with them can take the help of the various platforms offered by social media and others for the process of conveying the relevant information to them since the effective engagement of the stakeholders depends on the process of effective communication (Wheelen et al., 2017). Secondly, the company under discussion here can also take the help of the process of annual seminars as well as meetings for the process of conveying information about the above mentioned strategies and the benefits that they are likely to render to the company.

Conclusion

Therefore, from the above discussion it becomes clear that the various strategies form an important part of the companies as well as the business organizations. It is to be noted that the various companies as well as the business organizations take into consideration various factors for the formulation as well as the implementation of their strategies. The primary consideration which the various companies as well as the business organizations take into account is taking into consideration the various needs as well as the requirements of the customers. It is to be noted that the various companies as well as the business organizations also need to take into account the interests and the requirements of the stakeholders as well. It is to be noted that in the present times an analysis of the current market scenario as well as the competition analysis also forms an important aspect of the overall strategic management plan of the various companies as well as business organizations. Therefore, with this particular interest in view the various companies as well as business organizations conduct regular internal and external environment analysis in order to understand their situation in a much better manner.

The “outcomes and result based” strategic management techniques have gained a considerable amount of significance within the framework of the contemporary business world and it is a reflection of this particular fact that the majority of the business organizations of the present times are increasingly turning towards the use of this particular concept for the process of their business. Many experts are of the viewpoint that the use of this particular technique of strategic management enables the various business organizations from the different parts of the world and more particularly from the nation of New Zealand enables them to achieve better results since the focus of this particular method is on the results which the concerned business organization wants to achieve (Wheelen et al., 2017). The use of this particular method for the business process requires the various business organizations to have a clear idea about the results which they want to achieve. Thus, it can be said that the use of this particular method requires the identification of the results which the concerned business organization intends to achieve through the use of this particular method. The success of this particular method has compelled the various business organizations of the contemporary business to take the help of this particular method for the process of their business operations (Hitt, Ireland & Hoskisson, 2012). However, it is generally seen that many business organizations fail to identify the correct results which they intend to achieve and this leads to ineffective techniques which they end up resorting to. Therefore, it can be said that the use of this particular strategy for the process of business operations requires the various business organizations to first of all effectively analyze the business environment in which they are operational and also the needs as well as the requirements of their business so that they can effectively decide the results which they want to achieve since the entire effectiveness of the techniques used by them depends on the results that they are trying to achieve.

The various business organizations of the contemporary business world not only to sustain themselves in the ever competitive business world but at the same time to gain competitive advantage within the framework of the business world need to take the help of various kinds of effective strategies for the process of their business operations. It is generally seen that the use of effective strategies help the concerned business organization not only to bring about the overall growth as well as development of their business process but at the same time help them to enhance the effectiveness of their organization (Hill, Jones & Schilling, 2014). The concept of change has gained a considerable amount of significance within the framework of the contemporary business world and it is generally seen that the various business organizations take the help of the concept of change to further enhance the performance of their organization (Hill, Jones & Schilling, 2014). However, the implementation of change often requires the use of effective strategies for the management of the change which is being implemented. Thus, the company Domino’s takes the help of various kinds of policies for the effective implementation of the changes within the framework of its organization. The first method which is being used by it is the process of effective leadership (Rothaermel, 2015). This particular policy helps the concerned company not to effective manage the change but at the same time enables it to curb the resistance which the process of the implementation of change often faces from the various employees who are associated with the organization. Secondly, the use of effective management techniques is another strategy which is being used by the concerned company for the process of the effective management of the change (Hill, Jones & Schilling, 2014). Thirdly, making the various entities associated with the company about the need for the change and the various benefits which the implemented change is likely to provide them can also help the concerned company in a significant manner. The company under discussion here in order to achieve the processes of sustainability and competitive advantage can take the help of the above mentioned strategies in the recommendation section.

Conclusion

Therefore, from the above discussion it becomes clear that the concept of “outcomes and result based” strategic management techniques have gained a considerable amount of significance within the framework of the present day business world. It is a reflection of this particular fact that the various business organizations of the world like Domino’s and others are increasingly taking the help of this particular process for the purpose of their business operations. In addition to this, the process of change and change management has also gained a considerable amount of significance within the framework of the contemporary business world. However, it is generally seen that the various business organizations like Domino’s and others need to take the help of effective strategies for the proper implementation of the changes which is likely to help them to bring about the overall growth as well as development of their business process.

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