Dominos Pizza Competitive Advantage

In: Business and Management

Submitted By buffett90210
Words 1492
Pages 6
Finding a company with Durable Competitive Advantage: Domino´s Pizza Group plc Value Investing. Autumn 2013

Author: Jero R. Marin. September 2013 Introduction Domino´s Pizza Group PLC (DPG) is the UK and Ireland's leading pizza delivery company and holds the master franchise to own, operate and franchise Domino's Pizza stores in these markets and also in Germany and Switzerland. It is a company based in UK and it is totally independent from the US Domino´s Pizza Corp with which it just holds an agreement to use the Domino´s brand name. With a Gross profit margin of 36.6%, a Sales compounded average growth rate in the last 5 years of 15.9%, and a Return on Equity of 48.6% it is worth a thoughtful analysis to determine

Finding a company with Durable Competitive Advantage: Domino´s Pizza Group plc

whether this company has really a sustainable competitive advantage. The stock performance in recent years has been spectacular after going from 200p in 2009 to 600p at last close:

1. Screening Process and Competitive Advantage “signals” Using a financial database we have first determined what parameters should be entered to screen…...

Similar Documents

Dominos Pizza

...Domino’s Pizza Demand and Forecast ECO550 Rigo Benitez Dr. Atia Yasmeen Strayer University Demographics and Independent Variables Analysis Domino’s Pizza is planning to open a store in Annandale, VA, a median-size town about 10 miles outside of Washington D.C. Domino’s Pizza will do a demand and forecast to determine if it’s a good decision to open the store. The independent variables are population, mean household income, and pizza price as the independent variable. Annandale’s census population was 41,008 at the 2010 census, down from 54,994 in 2000 due to the splitting of the western part form Wakefield and Woodburn CDP's. The population and household income should help determine if people are willing to pay the pizza price and how much is the demand for pizza. The population helps determine the demand for pizza because of the law of the demand, the larger population the larger the demand. The household income will help also because the more disposable income the more people will buy a common good. Pizza is a common good that people will buy more often if they have more disposable income. The following chart display the variables used to determine pizza demand. Testing Coefficient of Determination Analysis Using Data Regression Analysis tools on Excel, the following results are used to determine the pizza demand in Annandale and if Domino’s Pizza should go ahead with the decision open the store. Domino’s Pizza Final Analysis to Open the......

Words: 578 - Pages: 3

Dominos Pizza Growth and Strategy Part 1

...3/23/13 Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Username Passw Submit Forgot your password? | Not a member? Please register tutor2u Economics Business Stds Politics Sociology IB Diploma Law Religious Stds Blogs Management History Geography Physics Give It a Go & Other AQA BUSS2 & BUSS4 | AS & A2 Economics | GCSE Business Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Friday, November 26, 2010 by Geoff Riley Print Email Tweet This! Save to Favorites Despite or perhaps because of difficult economic times, the pizza delivery company Dominos UK & Ireland has enjoyed rapid growth over the last couple of years. The company, which owns the Master Franchise to the Domino’s brand in the UK and Ireland, now operates through over 130 franchisees with an average of 4.5 stores each. And their long-term strategy contains the target of rolling out at least one new Dominos store per week in each of the next ten years, growing the business into a billion pound brand in the UK – almost double the current size. Shareholders in Dominos are happy! The company floated on the Alternative Investment Market (AIM) in 1999 and moved into the FTSE-250 mid-cap index in 2007. It now trades at £5.20 per share contrasted with an initial floatation price of 17 pence. Measured by turnover, Dominos is now bigger than the combined income of its largest four rivals including Perfect Pizza and Pizza Hut. The sheer scale of the...

Words: 589 - Pages: 3

Dominos Pizza

...Pizza Delivery Position Paper “I’m damned if I do, and I’m damned if I don’t,” (Old Saying). Life is filled with hard choices. In fact, the line between right and wrong action can be so blurred at times, that the morally correct action can truly be a mystery. This is why ethics is so important; because it allows one to sharpen their intellect and be able to discern right action from wrong. However, one part which even gives ethical reasoning a run for its money, is a decision where both outcomes are, by all estimations, equally as bad. In summation, Domino’s pizza has started a practice with one of its branches which disallows drivers to deliver pizzas to certain neighborhoods in their zone. As a part of this practice, Domino’s has created a map of its deliver radius and marked areas where it will allow drivers to deliver to and where it won’t allow drivers to deliver to. This policy was first implemented, because many employees where being robbed and murdered in these particular neighborhoods. Eventually certain members of the community, who lived in these “bad” neighborhoods, protested and said that these practices were pronounced acts of racism. Eventually other political groups got involved, such as the American Civil Liberties Union, who criticized this practice because all the targeted neighborhoods were predominantly minority neighborhoods. When first examining this problem, we see that there is one single underlying issue at the heart of the problem; is this......

Words: 988 - Pages: 4

Dominos Pizza

...Pizza Delivery Position Paper “I’m damned if I do, and I’m damned if I don’t,” (proverb). Life is filled with hard choices. In fact, the line between right and wrong action can be so blurred at times, that the morally correct action can truly be a mystery. This is why ethics is so important; because it allows one to sharpen their intellect and be able to discern right action from wrong. However, one piece which even gives ethical reasoning a run for its money, is a decision where both outcomes are, by all estimations, equally as bad. In summation, Domino’s pizza has started a practice with one of its branches which disallows drivers to deliver pizzas to certain bad neighborhoods in their area. As a part of this practice, Domino’s has created a map of its deliver radius and marked areas where it will allow drivers to deliver to and where it won’t allow drivers to deliver to. This policy was first implemented, because many employees were being robbed and murdered in these particular neighborhoods. Eventually certain members of the community, who lived in these “bad” neighborhoods, protested and said that these practices were pronounced acts of racism. Eventually other political groups got involved, such as the American Civil Liberties Union, who criticized this practice because all the targeted neighborhoods were predominantly minority neighborhoods. When first examining this problem, we see that there is one single underlying issue at the heart of the problem, which asks...

Words: 1171 - Pages: 5

Domino Pizza Case

...Domino’s Pizza Case: Geographical integration facing local specificities The U.S. Pizza Industry is not really attractive due to a lack of concentration¹ in the domestic market according to Porter’s five forces analysis. Despite this obvious lack of attractiveness, Domino’s Pizza (later referred to as «Domino’s») were able to make a 8% profit² relying on an inimitable competitive advantage: the 30-minute delivery guarantee made possible by a very specific computer system developed by the company. Facing few growth opportunities in the domestic market, the company decided to adopt a geographical integration strategy in order to increase market shares. Since market entry is riskier when there are cultural differences between the company and the new market, Domino’s adopted a master franchise model of operations that allowed the company to minimize its risks in foreign markets while earning higher returns through the royalties system. This memo addresses the question why Domino’s Pizza have been so successful in some countries and failed miserably in others whereas it was using the same franchising agreement system in every foreign country. To this end, we will highlight key success factors of geographical expansion through the franchise system: the company’s ability to transfer their resources to franchisees and to adapt to local tastes. We will then suggest Domino’s to improve their appraisal of the local environment and ensure better respect of their procedures to achieve......

Words: 1617 - Pages: 7

Competitive Advantage

...Competitive Advantages MGT/498 - Strategic Management February 9, 2014 Competitive Advantages Paper Economy today is highly competitive; increasingly competitive as more companies acknowledge that domestic landscape is shrinking. As the opportunities decrease in the domestic market, organizations are making the changes to gain a competitive advantage in the global market. In this paper, team B will discuss the advantages of Riordan Manufacturing and how there related to other organizations in the market, such as Starbucks, and Apple Inc. In addition to determining the competitive strategies of Riordan, they must improve innovation and sustainability in their business operations of both the United States and global market. Furthermore, Riordan has to establish particular strategies and determine the numerous ways in which they will accomplish sustainability of long-term organizational performance. Competitive Advantages The company Riordan has the competitive advantage of product differentiation because their producing computer fans, heart valve stems, and injected molded products, such as water bottles, etc. Their competitive advantage caters to any retail household store, office buildings, and even medical centers. Furthermore, Riordan has several locations, which can be used to implement production efficiencies, which lower costs. To identify opportunities, the organization holds a comprehension market study to gain knowledge and establish directional......

Words: 920 - Pages: 4

Competitive Advantage

...Darlene Ulmer Greta Miquelena 05 March 2014 Competitive advantage is a very important concept that seems very simple but it can bring lots of profitable benefits to a company. Competitive advantage means to have some sort of advantage over the industry competitors; in other words, when a company is able to create an innovative product that the competitors cannot imitate. For example, iPad tables are a hot item in the market and everyone from any age wants this item; therefore, it has been proven to have competitive advantage over any other table in the market. Now days all the companies are very competitive and only a few are able to succeed. Therefore, companies must use all the sources available to maintain the customers within the company. Brand names and costs switching are sources of competitive advantage; nonetheless, a brand name is not just created overnight. It takes dedication, consistency and interpersonal skills to create customer inertia. At the end of the day, if I get personalized treatment and every time I go to that store I get the same service, my expectations start to increase. Therefore, I would start spreading the world about my fascinating experience with families and friends. It is important to have more than one source of competitive advantage because this provides the company market share stability and profitability. The pharmaceutical industry has three major sources of competitive advantage, customer satisfaction, complaint resolution and...

Words: 459 - Pages: 2

Domino´S Pizza

...1. ¿Qué pasos muestra el Pizza Tracker para el usuario? Pasos: 1. Orden puesta 2. Preparación 3. Cocción 4. Control de calidad 5. Entrega Finalmente para darle seguimiento el cliente introduce su número de teléfono para poder darle seguimiento a su pedido. 2. ¿Cómo mejorar el Pizza Tracker hacia el usuario? El pizza traker de Domino’s permite a los clientes hacer sus pedidos en línea y a su vez rastrear los mismos. Este sistema permite a los clientes ver una versión fotográfica simulada de su pizza mientras esta es personalizada, Pizza Tracker muestra una barra horizontal que rastrea el progreso de un pedido en forma gráfica ; A medida que Domino´s completa cada paso del proceso de cumplimiento del pedido. Cabe señalar que también tiene la ventaja de que no tiene que moverse a la pizzería, esto le ahorra tiempo y dinero. 3. Sería una influencia del servicio del Pizza Tracker para pedir una pizza de Domino’s, en lugar de una cadena de la competencia? ¿Por qué o por qué no? Sí, porque con este servicio, el cliente puede darle seguimiento a su orden para saber en donde encuentra exactamente, es una forma de convencerlo para que las pizzas de Domino’s en lugar de elegir alguna otra pizzería de la competencia   4. ¿Qué mejoras le haría a la característica de la realización de pedidos? Integrar un sistema de software, para mejorar la coordinación y la toma de decisiones. También muy importante los sistemas de administración de la cadena de suministros ya que...

Words: 332 - Pages: 2

Domino Pizza Service

...HOA SEN UNIVERSITY FACULTY OF ECONOMY AND COMMERCE MARKETING MAJOR SYNOPSIS Our purposes in doing this report are to learn about the aspects of Domino’s Pizza delivery service and the ways Domino’s Pizza deal with the provider gaps to meet the customers’ expectations, also creating the perceptions of its service along the way. By using the Internet and other related sources as tools to dig deep into one of the most famous foreign pizza delivery brands in Vietnam, we have collected and totalize a great amount of useful and precise information about both Domino’s Pizza Company itself and the delivery service that it provides. Thanks to that, the result is the broad, both general and detailed view about Domino’s Pizza Company with its market segment, target customers, positioning and the ways it executes its service process through closing the provider gaps to better serve its customers. From that, we have drawn some conclusions and given out some proposals for Domino’s Pizza to further modify its service to match the unique features of Vietnamese customers and market. CONTENT SYNOPSIS i CONTENT ii ACKNOWLEDGEMENTS iii INTRODUCTION 1 COMPANY INTRODUCTION 3 LITERATURE REVIEW 5 MARKETING ENVIRONMENT AND SWOT ANALYSIS 7 I/ Marketing environment: 7 1. Microenvironment: 7 2. Macroenvironment: 8 II/ SWOT analysis: 9 CUSTOMER-DRIVEN MARKETING STRATEGY 11 I/ Market Segment: 11 II/ Target market: 11 III/ Differentiation: 11 IV/ Positioning: 12 ...

Words: 9665 - Pages: 39

Domino Sizzles with Pizza Tracker

...Management of Information Systems Domino Sizzles with Pizza Tracker. 1) What kinds of systems are described in this case? Identify and describe the business processes each supports. Describe the inputs, and outputs of these systems. Domino’s proprietary described the point-of-sale system, Pulse, which is an important asset in maintaining consistent and efficient management functions in each of its restaurants. A point-of-sale system gain the control of purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices. Domino’s implemented pulse in a large portion of its store, and those stores reported improved customer service, reduced mistakes, and shorter training times. Since that time, Pulse has become a staple of all Domino’s franchises. Domino’s introduced a new hardware and software and platform called Pulse Evolution which is now in use in a majority of Domino’s, which is easier to update and more secure only because one machine in the store needs to be updated. Inputs: Customer orders that describe the type of pizza crust, pizza ingredients and toppings, side orders, and delivery location data. They described their inputs as TPS, Pizza tracker and Pulse etc. Processes: Data updates the system's database. The older software used a thick-client model, which required all machines using the software to be fully equipped personal computers running......

Words: 386 - Pages: 2

Dominos Pizza

...item to a customer. (Appian, 2015) Domino's Pizza Inc. main business process is linked to sales, which has different interrelated systems to be written below: 3.1 TRANSACTION PROCESSING SYSTEM A transaction process system (TPS) for Domino's is the registration where all the transactions involving the collection, adjustment and recovery of all transaction data are done. The Characteristics of a TPS consist of performance, consistency and dependability. The main aim is to take and customize orders utilizing a touch screen interface, overseeing sales record and assimilating client data. (Bidgoli, 2014) Business process of Transaction processing system Inputs In this system, it take the order from the customers, as which sort of pizza crust, defined flavour of pizza and toppings, any side orders and name of the location where it is to be delivered. Processing All the required information is updated in database and processing of information through machines, so it starts preparing of pizza in the moment Outputs Outputs includes the status of delivery, received money, client feedback, the quantity of pizza's sold (Bidgoli, 2014) 3.2 MANAGEMENT INFORMATION SYSTEM Management information system largely refers to a computer-based system that gives managers with the tools to arrange, assess and productively manage divisions within domino’s pizza. With a specific end goal to give......

Words: 2666 - Pages: 11

Dominos Pizza

...MARKETING STRATEGY OF DOMINOS PIZZA SUBMITTED BY HEMANTA DAS ROLL- F-028 SUBMITTED TO PROF. AJAY PANDIT 1 COMPANY PROFILE DOMINO’S PIZZA Domino's Pizza is an international fast food pizza delivery corporation. It was founded by Tom Monaghan. There are currently about 8,500 corporate and franchised stores in 55 countries, including all 50 US states. It was the second-largest pizza chain behind Pizza Hut in the United States. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti. Domino’s continued to grow and in 1978 opened its 200th store. On May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international locations. In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and ceased being involved in day-to-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer. Involved in day-to-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer. In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the system. Also that the Domino's Pizza store in Tallaght, Dublin, Ireland,......

Words: 3404 - Pages: 14

Dominos Pizza Management Issues

...Luis Molina Writing 2 Ms. Katherine Hubbard 10/23/2015 Business communication issue Domino’s Pizza communication issue Effective communication is essential to the success of any business organization. Since the world is becoming a global village it is of utmost importance to effectively communicate within and outside of an organization. However, due to the large organizational sizes and the many organizational structures it becomes very difficult to get any message across. Effective communication can improve relations, motivate and ultimately best results for the company in the long run. The business communication issue that I am going to talk about happened in the year 2009, in North Carolina. Two employers of the fast-food Domino’s Pizza restaurant thought it was going to be funny to record and post a video playing rudely with the food at the same time they were cooking it. This video was posted on YouTube and automatically became to one of the most popular videos of the moment. This wasn’t that funny for the company, because this video made them lose all the good reputation they gained during the years with the hard work of many workers. The duo created a total of five videos, one of the videos showed an individual sticking mozzarella cheese up his nose and then blowing the cheese on a sandwich, among other unsanitary and stomach-turning activities. An estimated 1 million people viewed these videos before they were pulled two days later. (Justin Gray, 2011) This...

Words: 1830 - Pages: 8

Competitive Advantage

...Cost advantage/ Competing in distinctive way “If a company cannot be more operationally effective than its rivals, the only way to generate higher level of economic value is to gain a cost advantage or price premium by competing in a distinctive way”. Does this apply to the digital economy? Assess critically. It has been claimed that “value can be created with Internet communication either through finding ways of reducing costs or, on the demand side, by improving the match between buyer preferences and the goods they purchase”. Do you agree? “Internet technologies tend to reduce variable costs and tilt cost structure towards fixed cost, creating significant greater pressure for companies to engage in destructive price competition.” Do you agree? INTRODUCTION o It is argued that “If a company cannot be more operationally effective than its rivals, the only way to generate higher level of economic value is to gain a cost advantage or price premium by competing in a distinctive way”. o I will first give a definition of the digital economy and what is economic value. o This is followed by a briefly discussion on operational effectiveness. o I will then talk about the importance as well as limitation about cost advantage and price premium strategies. o The last part of the essay will look at other strategies and other elements besides cost advantage and price premium a firm can consider gaining competitive advantage. MAIN......

Words: 1498 - Pages: 6

Competitive Advantage

...Competitive Advantage and Pro Sports LaChandra Nicole Gaines MGMT 488 June 5, 2011 Ronald Morritt Competitive Advantage and Pro Sports Sustainable competitive advantage is the main purpose of an organization’s corporate strategy. Sustainable Advantage permits the preservation and development of a company’s competitive location within market (Strategy Fundamental: Determining Sustainable Competitive Advantage, 2010). Competitive advantage facilitates an organization to outlast against its competitors for an insignificant amount of time. Competitive advantage may originate in many forms. The competitive characteristic stems from the likeness of other alternatives (Strategy Fundamental: Determining Sustainable Competitive Advantage, 2010). I chose the Miami Heat as my pro-sport team to discuss competitive advantage. Because signing the very talented LeBron James to its 2010-2011 rosters, the Miami Heat established competitive advantage over all other professional basketball teams in the league (Waller, 2011). Alongside Dewayne Wade, the Miami Heat has the potential to bring home another championship to the city of Miami. There is a unanimous conformity that both Dewayne Wade and LeBron James are two of the best players in the NBA (Waller, 2011). The talents of James and Wade can dominate any team to secure a win for by making all the shots, rebounds, and playing aggressive defense. Both James and Wade signify sustainable competitive advantage for the reason that...

Words: 574 - Pages: 3