Business Foundation: SWOT Analysis And Recommendations For Dominos Pizza Enterprises

Introduction of Organization

Discuss about the Business Foundation.

Dominos Pizza Enterprises Limited is the largest franchisee of Dominos brand, USA which operates in more than 2000 stores in several countries that are Australia, New Zealand, Japan, Germany, Belgium, France and Netherland. Dominos brand, USA started by two partners, Tom and James, which later taken over by Tom and carried on further (Domino’s Pizza Enterprises Ltd, 2016). At a later stage, Tom opened two more pizzerias and named them Domino. These three pizzerias give recognition to the logo of Dominos by representing three dots of the logo as his three pizzerias. It opened its first store in Queensland in the year 1983, after having some drawbacks that later bought by the local company Silvios Dial-A-Pizza as a franchisee. Silvios Dial-A-Pizza converted their 70 own stores to Dominos Pizza store later known as Dominos Pizza Enterprises. As it can be known by its name, Dominos pizza enterprises mainly deal in pizzas. With the growing demand, Dominos went with the other variety that is breads, desserts, chicken strips and drinks. It becomes the leading chain of pizza with revenue $1479.8 million and net profit of $64 million in the year 2015. 

SWOT analysis refers to the procedure of evaluating the four variables that are strength, weakness, opportunities and threats. These variables varies on two environments that are internal environment holds strength & weakness and external environment holds opportunities & threats (Woey, 2013). The purpose of this analysis is to know about performance within and expectations outside the organization. The SWOT dimensions explained with the ranking below: 

The ranking of the above table is made as per the criteria of checking organizational performance and growth. The dimensions of SWOT analysis are strength, weakness, opportunities and threats with the understanding of Dominos Pizza Enterprises is explained further. The first is the strength that comes to Dominos Pizza enterprises from its large networking and sales from its stronghold in Australia and participation in several countries. The dominos brand has strong hold all over the world that contributes its image to the Dominos pizza enterprise. Dominos pizza enterprise is the strong player in the pizza segment in Australia. Along with pizza, many options have been added that’s pasta, sandwiches, chicken strings that open a market for the organization and give rival a competition (Lutz, 2015). Other factors keep them above from competitors that are online training for staff, excellent service in store as well as home delivery, quantity and quality of the same products in a better way. The most important which keeps its strength going is training of staff that keeps them motivated and influences them for doing well (Host, 2012).

SWOT Analysis

Secondly is weakness, it reflects in which Dominos Pizza Enterprise is lacking. The weaknesses which giving breaks for growing to enterprise are high staff turnover, many numbers of branches with less organization, less coverage of areas for delivery that give benefit to rivals and display of products in a similar way. The most important which can be counted in weakness is pizza and other products come under the junk food, which stop people from having this as its unhealthy food. The main contributors in their earnings are in pizza and if that is stopped, it can be very harmful.

The third is opportunities for the enterprise are as per the outside environment in which enterprise is operating. There are opportunities, which can explore by correcting weakness that is providing organized culture to staff and covering new areas with the opening of branches or increasing coverage area of already opened branches (Bhasin, 2015).

The other factors, which come under the opportunities are use of recycled boxes of pizza in any state, option for more health making goods should be there, environmental consciousness that is by going for green scooters. The most important is taking part in the corporate social responsibility initiative for better and strong image. The last from the dimension is a threat, which can affect what an enterprise built. The known threat for every business is from competition that is in high volume with the Dominos Pizza enterprise. The threat should be dealt properly in the Dominos pizza enterprises by considering volatility costs and from the other brands that is Pizza hut and Papa John’s. From the past it’s seen how fast food consumer shifts to another product in highly developed nations America, Japan and Australia.

Foremost ranking and description of SWOT analysis gives several recommendations for understanding strength, weakness, opportunities and threats of Dominos Pizza Enterprise. The strength explained performance of the organization with the scenario and opportunity by giving the option for new product and a particular market. The importance is to set the structure of every branch, so that there should be clear authority and responsibility. After setting a structure, enterprise should concentrate on particular or target market that is offering a healthy food, so that it stays open for the consumer in demand for any kind of food. For example, instead of cold drinks, there should be natural juices also. The other product enterprise looks after is burger pizza, whose target market can be students and young people. Through this, a new population can be given concentration and it allows an opening of a new segment and market that gives them new rivals and competitors. This product can give competition to KFC and MacDonald’s burger. Its price should be kept nearly to the burgers of the KFC and MCD burgers (Domino’s Team, 2016).

Findings

The emerging of a new product gives an enterprise opportunity for competing new market with the new competitors. This can be achieved from the strength of enterprise that is a vast network and sale horizon. There should be luring strategies for the consumers of the products of Dominos pizza enterprises by recoding the mail, birthday, telephone no. and giving them coupons, special offers and gifts on birthday. The home delivery facility should extend to far off areas if it’s possible. Dominos Pizza enterprises can develop the new market in their own area by providing comfortable services sitting at different places easily, reinventing its products that are pastas, breads and desserts. As Dominos Pizza enterprise is operating in several enterprises, it can make their restaurants in theme based or targeting for particular segment that is children, younger people or family. The various geographical locations can be covered by opening in lesser areas that can serve the basic requirements of people with effective and efficient staff.

The various activities by the Dominos Pizza enterprise should be carried for the community for their belief to give back what they are receiving from the people of Australia and New-Zealand by helping them anyhow, though they have donated pizzas at the time of need and hunger that is through “Doughraisers”. Their mission further carried on with Dominos chocolate for charity where they donated for the purchase of cake. This initiative should be carried to other five countries in which enterprise is involved by opening branches, so that the image should carry on with the same level and enthusiasm as in Australia and New Zealand. The other known vision, mission and values of Dominos Pizza Enterprise should be carried in the same way as it’s carried on in their origin countries that are Australia and New Zealand. Their values that give them recognition are:

• Treat everyone equally
• Make best with less resource
• Check, arrange and do what is required
• Everyone is special
• Keep target high and grow
• Grow yourself

The above values should be carried to other countries with the same application in origin countries

Conclusion

To sum up the foregoing, Dominos Pizza enterprises have developed into the largest franchise chain that holds 2000 stores in seven countries since 1993. This shows how enterprise changed its strategies with the Dominos brand, USA to stay in the competition. This can be understood from the SWOT analysis strengths they have and weakness that need to be improved for constant and higher growth. In all due fairness, Dominos Pizza Enterprises should not only concentrate on the food, but should also concentrate on the staff management so that they grow well in every aspect. Their contribution towards society should keep growing with the opening of franchise in other parts of the countries.

Bhasin, H.,12 April 2015, Dominos SWOT analysis – SWOT analysis of Dominos, Dominos SWOT analysis – SWOT analysis of Dominos.

Domino’s Pizza Enterprises Ltd, 2016, Dominos official website. [Online], Available at: https://www.dominos.com.au/inside-dominos/media/feb-2016-domino-s-delivers-unprecedented-npat-growth-of-567-based-on-a-296-growth-in-revenue

Domino’s Team, 2016. Dominos vision, mission and values, Available at:https://www.dominos.com.au/inside-dominos/corporate/vision-and-mission/

Host, E., 2012, Domino’s Pizza, Inc. SWOT Analysis, Domino’s Pizza, Inc. SWOT Analysis, September, Available at: https://connection.ebscohost.com/c/articles/82534307/dominos-pizza-inc-swot-analysis.

Lutz, A., 14 April 2015, Domino’s made 3 changes to become the world’s top pizza chain, Domino’s made 3 changes to become the world’s top pizza chain.

Woey, K., 30 October 2013, Domino’s Pizza SWOT Analysis. Domino’s Pizza SWOT Analysis.