Domino's Pizza Case Analysis Essay

Introduction From “Get the Door, it’s Dominos” to “Fresh, hot pizza delivered in 30 minutes or less guaranteed,” Domino’s Pizza continues to reinvent their slogans like their business strategy (Domino’s Pizza, 2015). Domino’s Pizza, once synonymous with home delivery, uses strategic management tools to manage resources and processes to continue to thrive in the ever changing world. Most businesses are affected by unexpected and sometimes uncontrollable internal and external factors. Internal factors would include retention rates, policies, and the work culture. Political, economical, and environmental factors that negatively impact an organization are considered external issues. For these reasons, an environmental analysis was conducted

For any organization, the environment consists of the set of external conditions and forces that have the potential to influence the organization, “(Mastering Strategic Management Saylor Academy, 2016, p. 20). In the case of Domino’s Pizza, the external environment consists of rivals such as Pizza Hut and Pappa Johns and the ongoing changes of social media trends and technology. Domino’s Pizza operates within a competitive supply chain industry that thrives on great marketing, good food, and competitive prices. However, the food chain industry is commonly affected by external forces like government regulations and economical changes. In 2015, when the federal government increased minimum wages to $10.00, several chain franchises suffered. Domino’s Pizza, however, increased wages to keep the “right people” in accordance with maintaining the competitive advantage. Strategically, employing the “right people” proves to increase performance levels while maintaining healthy employment levels of quality

The interactions include potential new threats of new entrants and substitutes and bargaining power of suppliers and buyers (Mastering Strategic Management Saylor Academy, 2016, p. 25). Domino’s Pizza faces tough competition because the food franchise market is saturated. For Domino’s Pizza, a strong force of competitive rivalry is based on the following external factors, high number of firms and consistent low costs. The high availability of substitutes or other pizza restaurants, causes lowers the bargaining power for Domino’s Pizza. Suppliers also have a major impact on a firm. The large population of suppliers weakens the impact on the organization. Supplies like flour and meat are in abundance within this industry. The threat of substitute products is high. The threat of local pizza shops or pizza chain restaurants with competitive prices raises major issues for Domino’s Pizza. New entrants would affect Domino’s Pizza’s market share. The impact of new entrants is relatively low as capital costs are moderate for new food chain