Domino’s Pizza Inc SWOT Analysis
Domino’s Pizza Inc. currently operates in more than 60 countries across the globe. It owns a well-knitted network of both company owned as well as franchise stores worldwide. It is one of the leading and most popular pizza delivery companies in the USA. The 8773 global outlets are spread across all the USA’s states and the 60 countries of the world. Currently about 10,500 people are employed at the Domino’s Pizza Inc.
The Domino’s Pizza Inc. reported an increase of 0.6 % in its operating profits during the fiscal year 2008 a compared to the previous year. The operating profit has been $195 million during 2008. An increase of 42.5% in net profit has been reported during the year 2008 over the previous year. The net profits during the fiscal year 2008 were worth $54 million.
Domino’s Pizza Inc. strong brand equity gives it a competitive advantage over other industry players. The intelligent marketing strategy of heavy advertising is a key strength to make its brand image retained and differentiated in the minds of its customers.
Domino’s Pizza Inc. efficient and effective supply chain management enables it maintain its goodwill and promises. Its extensive distribution channels add to its plus points. In the global era of e-commerce and online shopping it has enabled to keep pace with the technology by offering online menus, click order placement services etc. it has been reported that in UK, 21.8% of the domino’s pizzas have been delivered through online orders paced on the web
The company is faced with crucial issues of weakening bottom lines due to slow growth and decline in the sales. The company experienced decline in its operating and net profits during the year 2007 as compared to the previous year’s reports. 9.5% drop down in operating profits and about 64.3% decrease in net profits was recorded.
There are favorable market expansion opportunities for Domino’s Pizza Inc in India and China where currently it have very few franchises moreover new product development by introducing new products in the current menu are a step that can be taken. Especially introduction of new flavor additives and pizza toppings that are region specific can be a good stride for Domino’s.
The distribution network should be further strengthened so as to ensure market penetration in the existing markets at maximum optimum levels.
Intensive competition and franchise management which vary with currency fluctuations pose a threat to the company. Apart from that Domino’s operations in countries like India, where there is unruly traffic system, are greatly affected to reach its claim.