Domino's Pizza Case Study Essay

Domino’s Pizza Case Study Domino’s Pizza Company was originally owned by Tom Monaghan and his brother James, first purchased as a mom and pop store in 1960 named Domi-Nick’s. Tom traded his car for the other half of the business in 1961, and changed the name of the store to Domino’s in 1965. Domino’s targets its sales toward middle and lower class customers that are looking to stretch their dollar and feed their family affordably. Although Domino’s has many positive aspects, it also has some downfalls. This essay will identify problems within the business, analyze what has to be done to address each issue, propose alternative solutions, and make recommendations for what Domino’s needs to do next.

Identifying Problems Domino’s has been a successful

Instead of an open restaurant style, the company only allows for carry out and delivery. While this approach is less costly than the alternative, the company is losing potential sales to competitors from customers that are looking for a sit down pizza meal out with their family.

Strategic Analyses Domino’s faces some strategic issues that need to be addressed. For instance, their competitors in the pizza industry are gaining strength. To name a few, Pizza Hut, Papa Johns, Pizza Inn, and Little Caesars are all catching up in sales to the company. Pizza Hut is the largest competitor in the industry, with revenues more than 60% greater than Domino’s, whereas Little Caesars was the fastest growing pizza chain in 2010. Domino’s, Pizza Hut, and Papa Johns together make up 51% of all customer spending on pizza delivery in America. Another strategic issue that the company faces is that competitiveness among firms in the pizza industry is very high. Not only are other big named establishments such as Papa Johns, Pizza Hut, and Little Caesars stealing away customers, Mom and Pop Pizza shops are as well. There are numerous Pizza shop options for customers to choose from when they are in the mood for pizza. For this reason, there is a huge price competition among rival

Domino leaders and employees need to come together and discuss what will be best for the company, and what efforts it will take to resolve the issues at hand. Perhaps they can come up with ways that they can raise their sales, and surpass competing firms revenues. On top of this, it will be necessary for them to spread their name more, make it better known; they need to figure out how to beat out competing firms prices without losing money. Perhaps investing in more technological ordering services would help to solve the issues at hand. Allowing easier mobile and online ordering will allow customers to order on the go, and attract more people. More advertising is likely to help Domino’s as well, with customers viewing images of delicious pizza in newspaper advertisements, and television commercials. Also, some sort of rewards system would draw in regular customers; receiving points towards free pizza, pop, or breadsticks would keep customers coming back.

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