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Tasting the S.W.O.T Analysis of Dominos

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Domino’s Pizza, Inc., also known as Domino’s, is an international pizza restaurant chain based in the United States that was formed in 1960. It is one of the best-selling pizza and fast food companies in the world and also in India.

SWOT analysis is an integral part of a company’s evaluation to identify its strong points and overcoming its hurdles. But before we dive into the SWOT analysis of Dominos, let’s get to know the company a little better. 

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About Dominos

SWOT Analysis of Dominos - brand logo | IIDE

The company is based in Ann Arbor, Michigan, and has its headquarters in the Domino’s Farms Office Park. The pizza business began franchising in 1967, and by 1978, the firm had grown to 200 locations. 

Pizza Vest Fast Food Group, which also controlled the rights to run Domino’s Pizza in 11 Southeast Asian countries, brought Domino’s Pizza to China in 1995. The organization inaugurated its 1,000th shop in India in February 2016. Outside of the United States, India has the most Domino’s restaurants in the world. 

 

Now that we understand the company a little better, let’s take a look at Dominos SWOT analysis.

 

SWOT Analysis of Dominos

A SWOT analysis compares the strengths, weaknesses, opportunities, and threats of a company. The strategic planning technique gives you tools to examine a business’ situation. It is a tried-and-true management framework that helps a company like Domino’s improve its business and performance in comparison to competitors and the industry. Let’s peek at each of these in the coming section. 

 

1. Strengths of Dominos

Strengths define what a company excels in and what sets it apart from the competition. Let’s have a look at Domino’s strengths now. 

 

  • Domino’s has a global network of approximately 9000 franchises and company-owned locations in over 60 countries. The company employs around 200,000 people worldwide.
  • Consumers are delighted by faster-than-expected service, and it helps the company stand out from the competition. In India, the brand is attempting to attract people from the middle and lower-middle classes who want to spend money on pizza at a low cost. Those who are excited to attend a festival and are looking for a low-cost, high-quality family restaurant. It would be best if everyone went to Dominoes.
  • Apart from pizzas, the corporation offers a wide range of fast food items. Domino’s is attempting to modify its dough to include better fats, which is accomplished by integrating more whole wheat into the crusts, in order to counteract customer health awareness. Pizza toppings are growing healthier as well, and some pizzerias are adding salads to the menus.

SWOT Analysis of Dominos - dominos pizza | IIDE

  • In comparison to its competitors, it is the leader in online and mobile ordering. Domino’s has made it feasible for clients to receive faster service as a result of its efficient supply chain. Domino’s is popular because customers may get home delivery in under 30 minutes. It takes 15 minutes to prepare a simple breakfast at home.

 

 

2. Weaknesses of Dominos

Weaknesses prevent an organization from accomplishing its full potential. Weaknesses are areas that the company must improve in order to remain competitive. Let’s examine the weaknesses of Dominoes. 

 

  • There is a loss in revenue as a result of the rise in health-conscious consumers, which has an impact on the company as a whole. Food with a lot of fat and calories is not preferred by health-conscious folks.

SWOT Analysis of Dominos - domnios restaurant  | IIDE

  • Domino’s faces a significant attrition problem as a result of a lack of insufficient training and development. Furthermore, because the personnel utilized are untrained, the company frequently changes employment if the employees are unable to acclimate to the fast-paced environment.
  • The company has more delivery locations than eating establishments, which is a concern, especially in places like malls and other places where customers want to sit and enjoy a meal.

 

 

3. Opportunities for Dominos

Opportunities are external factors that can help a company gain a competitive advantage. Let’s take a look at some of the opportunities that Domino’s can seize.

 

  • Existing countries are ageing, expanding into new nations will be helpful to the pizza giant. The company’s future plan should be to focus on more developing economies.
  • The distribution network should be strengthened further in order to secure maximum market penetration in existing areas while also increasing revenue.
  • Introducing unique Domino’s restaurants in various regions will help them gain more brand recognition as well as attract clients who prefer to dine in establishments.
  • Introducing a health-conscious menu with new flavour additives can result in future revenue increases, and inventing new regionally unique pizza toppings can be a beneficial step for Dominoes.

 

 

4. Threats to Dominos

SWOT Analysis of Dominos | IIDE

  • Domino’s business may be harmed by intense competition from a limited number of minor competitors. Local and national players such as “Pizza Hut,” “US Pizza,” and others are putting up stiff competition. The indirect rivalry comes mainly from fast-food restaurants like McDonald’s and KFC, where customers prefer burgers to pizza.
  • People are becoming more aware of what to consume and what to avoid as the government and non-governmental organizations focus more on health awareness, which is impacting Domino’s business. 
  • The expense of sustaining the pizza chain rises in tandem with the cost of veggies and raw materials. Furthermore, competition has an impact on the company’s bottom line. As a result, managing cash flow becomes challenging.

 

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Conclusion

 

Since its inception in 1960, the organization has grown immensely. The decline in the economy posed a threat to the brand along with people becoming more health-conscious, forcing Domino’s to learn towards healthier options. The brand has kept growing by constantly expanding internationally. And with the well-built image that Domino’s has built over the years, it is surely going to continue to remain powerful in the industry. 

Did you find our analysis informative? Do you want to learn more? Check out more of our case studies on our website. Furthermore, if you’re interested in Digital Marketing, Karan Shah’s Free Masterclass is an excellent place to begin. Please share your thoughts on this case study in the comments section below. Thank you for taking the time to read this, and if you found it helpful, please share it with your friends and family.

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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