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Domino’s Pizza SWOT & PESTLE Analysis

ID : 52766153| Sep 2020| 15 pages

COMPANY PROFILE -Domino's Pizza

Business Sector :Restaurants

Operating Geography :United States, North America, Global

About Domino's Pizza :

Founded in 1960 by Monaghan brothers Tom and James, when they purchased an old restaurant in Ypsilanti, Michigan, United States, it was initially named DomiNick’s. The company operates a network of franchise owned Domino’s pizza stores across the globe that has both delivery and carryout business segments. In 1983, Domino’s opened its first international store in Winnipeg, Canada. It has grown into a global enterprise with over 17,000 stores in more than 90 markets as of 2020.
Their mission statement reads ‘To be number one’. They are already world leaders in global QSR pizza, with 15% market share in global QSR pizza market. They have surpassed its largest competitor Pizza Hut with highest global retail sales. Domino’s sells 3 million pizzas on an average, globally. Initially, Domino’s only offered two sizes of pizza and one drink for around 30 years. It now offers varying crust types and sizes along with a long list of side orders, desserts and beverages. Their pizza toppings vary according to country and culture and often feature regional specialty items.
In 2004, Domino’s Pizza, Inc. became a publicly traded company at New York Stock Exchange (NYSE). With prime focus on pizza delivery, the company’s business model feeds on quality food at competitive price, with easy ordering access and efficient service aided by technology innovations.

Domino's Pizza Revenue :


US$ 3,618 million – FY ended Dec 2019 (YoY growth of 5.41%)
US$ 3,432 million – FY ended Dec 2018
(Does not include franchise revenues)

Competitive Analysis of Domino's Pizza

SWOT
PESTLE
The SWOT analysis for Domino's Pizza is presented below
Strengths
Weaknesses
1. Strong Franchise Business Model
2. Strong Brand Name in the QSR Industry
3. Continuous Product Innovation led to company’s growth
4. Established technological innovation and capability
5. Developed operational efficiencies over the years
6. Strong international master franchisee partners
1. Short term contracts with suppliers
2. Inconsistency in quality has brought the company under fire
3. Indebtedness has limited their borrowing ability
Opportunities
Threats
1. Strong growth in Quick-Service Restaurant (QSR) pizza category
2. Cut delivery times by adding more locations
3. New partnerships for delivery of essential items
1. Health concerns arising from coronavirus outbreak
2. Highly competitive QSR category
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Domino's Pizza

 

Strength

1. Strong Franchise Business Model: Domino’s runs on a 100% Franchise model internationally and 95% in the United States. The stores outside the U.S. are operated by master franchises with distribution rights for the entire region or country. With strong unit level economics, franchise profitability is at the center of everything they do. Over the years they have developed a cost-efficient store model with moderate capital requirements. Their focus is on the carry out and delivery business rather than the dine-in experience, thus making the stores generally smaller and less expensive to build. This combined with strong sales volume has led to strong store-level economies of scale, making Domino’s an attractive business opportunity across the globe. Same store sales increased by 3.2% in the U.S. stores and increased by 1.9% in international stores. They have strong International Franchise partners like Jubilant FoodWorks Limited, Domino’s Pizza Group PLC and Alsea SAB de CV that operate over 1000 stores in South Asia, UK and Mexico respectively. The franchise model has produced strong and consistent earnings for Domino’s through royalty payments.

2. Strong brand name in the QSR Industry: Domino’s is the largest pizza company in the world based on global retail sales. Consumers associate the brand with timely delivery, quality food at affordable price. They are recognized as world leaders in pizza delivery. Their scale and market coverage ensures timely delivery. They have provided unmatched value proposition for over a decade. Data driven consumer behavior analysis has helped Domino’s to gain over 20 million loyalty users. They reinforce their brand with best-in-class advertisements through various media channels. In 2010, the brand was exposed to harshest critics of the taste of their pizza. Since then the company has rebranded itself, driving inspiration from the critics. Bold, transparent, uncommon honesty in the marketing campaigns has built trust in their brand, telling consumers that they listen to their negative feedback and they aren’t just a pizza delivery company, the product also matters.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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SWOT & PESTLE (combined)
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Domino’s Pizza SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Domino’s Pizza SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/dominos-pizza/ [Accessed 05 Dec, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

Domino's Pizza SWOT and PESTLE analysis has been conducted by Shreya Luthra and reviewed by senior analysts from Barakaat Consulting.

Copyright of Domino's Pizza SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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Domino’s Pizza SWOT & PESTLE Analysis
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