In: Operations Management
Based on case study Domino’s Pizza, Inc. – 2013, by Forest R. David
Discuss the "internal analysis" existing in this case study and evaluate it.
Roughly 500words needed
Let us put forth the bullet points to discuss briefly within the scope of your query.
· Supportive internal system to develop and make sustainable business development
· Lack of healthy food servings in today’s scenario
· Government regulations tightening around the company’s business, in terms of restrictions in ingredients, preservatives, etc.
· Cheaper overheads being majorly takeaways, but giving away market share to competitors, who offer dine-in experience.
· Absence of sustainability reports and lack of sustainability statement on official marketing assets and manifestos, like the website.
· Unified ordering and transaction recording system facilitating quick assimilation and accessibility to orders and financial data helping the supply chain to be possibly the most efficient in the industry and adding to cost cutting and increased financial efficiency by integrating technology into every stage of the supply chain.
Now, let us take up one point at a time, analyse and evaluate. Not including the numerical data that has already been given in the case study. Please go ahead and include as you deem fit.
The genesis and growth of Dominos is a story of popular food chain catching the imagination of the masses and flourishing over two decades into a fast food giant.
The value chain that helped was the simple mission to provide the best possible at the cheapest. The vision of having franchisees spread all over under marketing support from the principals has been a winning strategy so far. The special condition of testing a franchisee for a year before entering into long term relationship has proven the solidity of the model.
The product, the food, by itself is becoming increasingly guilt inducing stuff for the conscious pizza lover. But at the same time still is as popular, because of the demography and Psychography of the target segment.
Dominos have maintained ethos of its business and hence should not be deterred too much subjected to these regulations. Their affinity to technology and enthusiasm towards extending the quickest service is bound to continue to win hearts through the stomach.
Market share does not seem to bother Dominos too much, as it exhibits by sticking to its business model of being majorly takeaway. The target segment, the bulk of the world opulation still searches for the cheap more frequently rather than the dine-in leisurely experience.
It is difficult to get away with the lack of sustainability on your table if you are a brand like Dominos, but honestly, that does not seem to bother the stock prices and equity of the brand and the customers of the brand either.
The negatives of Dominos, get almost annihilated by the plusses it poses to the customers and the business community at the same time; All thanks to its innovative introduction of industry firsts, like the PULSE system, which 98% of its franchisees are using enabling the back end of the supply chain to become even more aggressive and cost efficient at the same time. The same system enables the delivery boy to reach the customer on time making both ends extremely happy.
Therefore, inspite of some apparent internal issues and presence of external forces, Dominos seem to be having a smooth sailing with occasional swells to negotiate.