BPMN 3023 : Strategic Management - Domino's company
Analysis of Strategic Factors (SWOT)
Dominos SWOT analysis – SWOT analysis of Dominos
One of the leading pizza chains across the world, Dominos is the top contender for the strongest Italian fast food chains. The brand has a close competitor in Pizza hut. However, it has long overtaken Pizza hut to become the most sold pizza brand in the market. But compared to indirect competitors like McDonalds and KFC, Domino’s still has a long way to go. Here is the SWOT analysis of Dominos.
Strengths in the SWOT analysis of Dominos
High brand recall due to its regular advertising with taglines such as ‘30 minutes nahi to free’. Such aggressive marketing has created awareness & a promise for the brand in the market.
2. Fantastic channel network:
With its 9000 franchise & company owned outlets Dominos has extensive network spread over more than 60 countries.
3. Quick service & deep menu:
Quicker than expected service delights the consumers and helps the company to differentiate itself from others. In India Domino’s is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. Those people are eager to go for an outing in any festival and want cheap and best family restaurant. Domino’s would be most preferable.
4. Low cost alternative:
They do not need high class Ambiance or amusement in the shop so the establishment cost is low for the dealers and the price of pizza is very reasonable for the customers.
5. Healthier alternatives:
To combat health awareness among consumers, Dominos is trying to change their dough by having healthier fats, which is done by incorporating more whole wheat into their crusts. The pizza toppings are also becoming healthier, and some pizzerias are introducing salads into their menus.
6. Efficient supply chain:
Due to its efficient supply chain Dominos has made it possible for quicker service so that customers don’t have to wait for long. The preference of Dominos is because the customer can have home delivery within 30 minutes. Making a small breakfast at home itself takes 15 minutes.
Weaknesses in the SWOT analysis of Dominos
1. Operations:
Large number of franchised outlets results in difficulty in handling operations. Quality control too becomes challenging. Due to this, some of the Dominos outlets got closed affecting the image of the brand.
2. Decreasing sales in mature markets:
Due to rise in health conscious population there is decrease in revenue affecting the business as a whole.
3. Low staff retention:
High attrition due to the absence of proper training & development is a major challenge for Dominos. Plus the manpower employed is also unskilled so they quickly change jobs when they cannot adjust to the hectic environment.
4. Lesser number of eateries:
Dominos has more delivery outlets then eating joints which is a problem especially in places like malls and other locations where clearly customers want a sitting place.
Opportunities in the SWOT analysis of Dominos
1. Market Expansion:
Expanding to the developing markets will be beneficial as far as Pizza industry is concerned, as developed markets are maturing. Targeting the developing economies should be the future strategy of the company.
2. Penetration:
Strengthening its outlet network by further penetrating the current market will help Dominos to increase its revenues.
3. Health conscious eatables:
Introducing health conscious menu with new flavor additives which is low in fat will result in increasing it revenues in future.
4. Restaurants:
By introducing exclusive Dominos restaurants in cream areas will help the brand with more brand recognition and will also help in getting the customers who like to eat outside in plush restaurants.
Threats in the SWOT analysis of Dominos
1. Direct and Indirect Competition:
Intensive competition from the local & national players like “Pizza hut”, US pizza and more. In fact, Indirect competition is more from the likes of McDonalds and KFC where in customers prefer burgers over pizza.
2. Changing Consumer Eating habits:
With government & NGO’s concentrating more on health awareness, people are becoming more aware of what to consume & what to avoid which is affecting the business of Dominos.
3. Cost:
As the cost of vegetables and raw materials rises, the cost of maintaining the pizza chain also goes up. Plus, competition affects the bottom line of the company. Thus managing the cash flow becomes difficult.