CEO Doyle and his management team should consider the following strategies for the future direction of Domino’s: 1. Domino’s should consider its aggressive market development strategies and accept the risk associated with expanding into markets it has little expertise operating within. Aggressive market development strategies will keep the company’s focus on ever changing customer opportunities, emerging markets and economies. 2. Domino’s should focus on new geographic regions. Since they do not provide dine-in restaurants, there would not be a huge expenditure to opening stores in new geographic regions, particularly in Europeans areas such as Germany, Ireland and Wales. 3. Domino’s should follow Pizza Hut’s international rollout of stores. Pizza Hunt is Domino’s number one rival in the international market (David & David, 2015).
Although many of the international countries have a large number of mom and pop restaurants, Domino’s has 5,337 international franchises and Pizza Hut has 5,600 international establishments.
Domino’s realized their highest growth in 2012 in their International segment and should continue rolling out new stores. 4. This rollout would positively affect the corporate structure of Domino’s. Domino’s as international stores are franchises. The company’s revenue from the international stores is from royalty payments, advertising and the sale of food and supplies. Revenue from international franchises has increased 8% from previous years. 5. Restructuring by geographic division and establishing offices in Asia, the Middle East, and South America would better enable Domino’s to manage these more risky environments. Domino’s has realized increased international revenues and increased number of stores these areas, particularly in India, Turkey and Japan (David & David, 2015).
The Essay on International Financial Market
This paper will discuss the advantages and disadvantages of starting a Greenfield Production Facility in one of two places Estonia or Turkey. The paper will then conclude with my recommendation to Acme as to which foreign country is best suited for their investment. International Financial Market As a multinational enterprise that is considering establishing a Greenfield Production Facility in or ...
6. Domino’s can afford this financially. Domino’s total revenue increased by 2.6 percent in 2012 with only a small increase in long-term debt (David & David, 2015).
International store sales growth in 2012 was lower than previous years; however at 5.2 percent was the highest growth percent of the Domino’s segments (David & David, 2015).
7. Domino’s should consider continuing to offer healthy menu options. This does not, however need to include salads and pastas as competing companies are providing. Domino’s is currently offering a thin-crust gluten free veggie pizza. This pizza allows the choice of vegetable ingredients such as baby spinach, fresh mushrooms, diced tomatoes, onions, and peppers with no hydrogenated oil and 133 calories per 1/6 pizza slice, which is a healthier pizza option (Domino’s, (n.d.).
8. Domino’s should not purchase trucks to deliver its products and should continue leasing trucks. Leasing does not required an initial down payment as most purchases do. Ownership of trucks requires ongoing maintenance, repairs and replacement costs which would need to be incurred by Domino’s. Additionally, Domino’s can expense the lease cost of trucks on a monthly basis and not carry the truck inventory liability on their balance sheets (Penske, n.d.).
References
David, F. & David, F. (2015).
Strategic management: A competitive advantage approach, concepts and cases (15th ed.).
Pearson Education, Inc. Saddle River, New Jersey. Domino’s. (n.d.).
Home page (online).
Retrieved 4/10/2015 at https://order.dominos.com/en/pages/content/nutritional/nutrition.jsp Penske. (n.d.).
The Essay on Pizza Delivery And Domino
Domino’s Pizza, Inc. (NYSE: DPZ) is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960, Domino’s is the second-largest pizza chain in the United States.[1] Domino’s currently has nearly 9,000 corporate and franchised stores[2] in 60 international markets[3] and all 50 U.S. states. Domino’s Pizza was sold to Bain ...
Lease vs. own. Retrieved 4/10/2015 at
http://www.pensketruckleasing.com/northamerica/canada/PDF/lease-vs-own.pdf
