week 8 L final

Domino’s Pizza, Inc. (DPZ)

Student Name

Institution Affiliation

Domino’s Pizza, Inc. (DPZ)

According to Domino's, the year of 2021 will be a "transformational" one because of its digital technology and the introduction of its “Domin-Oh-Hoo-Hoo” campaign (Akers, 2022). Increased funding for the promotion, which began in May to happen without plans during the pandemic especially after lifting the restrictions, followed the brands first-ever holiday commercial. As a result of hiring Sarah Barron as new CMO, Domino's digital team now reports directly to the marketing department for the first time. Digital sales will account for 91.2 percent of the corporation's total revenue in 2021, the company claims (Akers, 2022). With the debut of its new app, which allows for group orders and greater promotion of promotions, this was made possible. 42 percent of system sales came from the app, a 2.2% increase over 2020. For the next three years, Domino's will invest roughly $25.5 million to help accelerate the company's digital growth (Akers, 2022). Personalization and e-commerce app development, as well as in-store innovation, will be part of this investment. As a result of reaching an agreement with franchisees, it has also agreed to increase marketing investment in support of new national campaigns and incentives.

Resolving issues with franchisees will "unlock tremendous latent potential," as well as promoting both short and long-term growth, according to the firm. With the partnership, Domino's CEO Dominic Paul expects a new era of collaboration, with the system working together closer than ever before (Tesseras, 2022). Domino's has urged franchisees to commit to new national promotional offerings focusing on both delivery and collection in exchange for this investment they have made in their businesses. For the first time in "many years," Domino's was able to launch a national price offer in January, 2022 with a clear value message. As part of their agreement with the corporation, franchisees must agree to test and implement new technology and product advancements, such as GPS tracking. Domino's growth strategy was launched in March, 2021, and this is all part of it. With a successful start to the year 2022 and a solid senior leadership team in place, we're well-positioned to keep moving the company ahead. To ensure a brighter future, we must work together to accelerate the sustainable growth of our system."

I believe that the Domino’s Pizza, Inc. (DPZ) would succeed with the strategy because it has already developed a strong foundation in the technological growth of the firm. Working towards driving a growth strategy through technology where apps that promote group orders and promotions works in the interest of the customer. The e-commerce app has been personalized and this is what contribute to the growth of the sales in the company to grow because the focus has been directed towards meeting the customer needs. A customized technology that considers the nature of the company customers makes it possible for the customers to get their tastes and preferences in terms of the quality of the pizza products delivered to them and also promoting the time management to deliver the product within a short timeline. The growth strategy that the company launched for three years is perfect in making it possible for the company to succeed because it requires consistency and a continuous funding and implementing in stages to ensure that there is a success in the project. There is a high chances of success in the strategy because the hired team that are handling the work are professionals that understand the industry better making it possible to succeed. The current strategy that focuses on technological apps in streamlining operations and the collaboration with the franchisees targeting on focusing on national promotions together brings about uniformity that makes the business succeed in the different markets. The collaboration between franchisees and the main office of Dominos makes marketing easy and reaching the clients successful and the business succeeds in the market.

Long-Term Objectives

The Domino Pizza’s long-term objective is to become Pizza delivery giant and the company has set a 2025 goal of opening 25,000 locations and grossing $25 billion in revenue (Littman, 2018) (Kelso, 2019). The long term objective is achievable in my opinion and this is based on the strategies that the organization has in place in making sure that they meet. There is a competent team in place that runs the marketing and sales department and this makes it possible for the organization to strive and generate the revenue in the three years period. The long-term goal can be achieved because the Domino’s Pizza has invested into digital technology for advertisement and also sales making it possible to increase the number of sales that translate to revenue generation. The investment in technology that the firm has done especially the digital sales has already paid off and it represents the 65% United States sales and this confirms that the firm would be meet the long term goals (Kelso, 2019). The expansion strategy of attaining 25,000 locations in my opinion would be a success for the firm because of their already agreement with the franchisees to work together in building the brand and organization where they would also contribute in making the expansion and benefit from a good profit that the national management agreed. There was discussion about how the franchisees would conduct business and this promotes the possibility of expansion because they would be having a significant share.

Organization

A flat organizational structure is used in this domino's pizza company. The store manager supervises a staff of 14 (Lucas, 2022). Information is transmitted from the top management to the lower level following hierarchy. The company has a CEO (Chief Executive Officer) who is responsible for overseeing and monitoring every aspect of the organization. “The chairman, the Chief Financial Officer (CFO), and the Non-Executive Director are the other top-level executives, three committees make up the company's Board of Governors. Nomination, remuneration, and audit are the main focuses of these committees” (Lucas, 2022). Such committees enable the company run better. The firm's layout is also backed by this organization culture. In order to enhance the company's business plan, the above mentioned leaders design specific legislation and models. In addition, they research and put into action the most efficient methods of financial regulation. The organizational structure of the company is divided into several senior management groups (SMTs) (Lucas, 2022). It is the job of these SMTs to advocate for the finest practices and positions in the industry. The teams keep tabs on the responsibilities of each stakeholder. Research is conducted extensively by these teams in order to identify the finest methods. In a wide spectrum of corporate decisions, they keep the board informed. The major duty of each committee is to make recommendations for the best business practices. Certain rules must be adhered to in order to maximize productivity. When it comes to Domino's organization, less really is more.

Summary of Top Current Trends

In spite of the fact that its business approach is cutting-edge, Domino's has had to cope with franchisee concerns. It was recently under investigation for allegedly aiding franchisees in defrauding their employees of their wages. The issues that the company is experiencing especially with the franchisees violating the culture and legislation that contribute to incompliance to laws and ethics damages the reputation of the brand and also threatens the future of the company (Pratap, 2021). Managing the increasing number of the Domino’s Pizza franchisees is becoming a challenge and they are continuing to grow and failure to put the best strategies in managing the firms would result to a failure in the systems. There are strategies that are in place for the company to cooperate with franchisees and when they enter the agreement then the risks would be reduced. An innovative business model has been built by Domino's. Quality control and other operational difficulties have to be dealt with because there are so many franchised stores. There are challenges of compliance and legal that are likely to be experienced in future because the company is entering different markets and countries and have complex laws structures and this might commonly occur on the aspects of labor and also franchisees laws and regulation that should be complied with.

Top 3 Competitors

Pizza Hut (YUM), QSR companies and McDonald's are top three of Domino's competitors. Additionally, these companies are challenging Dominos in profitability, quality, product innovation, marketing and customer service in addition to selling similar products. Furthermore, they are all in it for the same prize: a sizable slice of the market (Pratap, 2022). Apart from many QSR companies operating abroad, there are more local QSR brands operating in several major economies. The QSR sector has grown extremely competitive. Quality, product innovation, technology innovation, marketing, and customer service have become more important as a result of increased competition. It is because of these causes that Domino's operating costs have risen and its profitability has decreased. The competition of the top three firms are a potential threat to the Domino’s Pizza in future because the competitors comes with different tastes and preferences that targets similar customers and they reduce the market share making it challenging for the firm to reach its targets (Pratap, 2022). Competition is healthy but comes with huge challenges that include decreasing the sales and also forcing the firm to consider the competitors during pricing and also when developing products to always look unique and competitive to remain relevant.

Competition is a threat because the customers would have a strong influence about pricing and their buying behavior because of the presence of alternative solutions. In a market where customers has to consider choosing from variety firms becomes a threat to the business in making sure that the products developed are of high quality as compared to competitors and are appealing meeting the customer demands. There are possibilities that the top competitors increases the company expense in the form of advertisement, branding and pricing strategies to be competitive reducing profits. Additional resources must be allocated to marketing, logistics, and human resources (HR) in order to remain competitive and sustain market scope to experience a stiff competition (Saraf, 2022). In significant markets, competition can also act as a roadblock to expansion, necessitating increased marketing and other efforts on the part of the organization.

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