SWOT Analysis of Domino’s Pizza

Introduction 

Swot analysis of Domino’s Pizza. Domino’s Pizza Inc. is a US pizza chain restaurant multinational company. Dominick DeVarti, Tom Monaghan, and James Monaghan were the founders of Domino’s Pizza, and they laid the foundation of the company on December 09, 1960. The headquarter of the company is at Domino’s Farms Office Park, Ann Arbor, Michigan, USA.

Domino’s Pizza’s main products and services are submarine sandwiches, pizza, pasta, dessert, chicken wings, oven-baked sandwiches, desserts, beverages, desserts, bread bowls, beverages, custom pizza, and much more.

According to an estimate, the annual revenue of Domino’s Pizza in March 2021 was 4.228 billion dollars, and it has increased by 15.65%. Out of which, the net income of the company was 0.487 billion dollars, and it has increased by 13.45%. However, the company has employed more than 14400 employees to manage its worldwide operations.

Domino’s pizza’s top competitors are Pizza Hut, Papa Johns Pizza, Taco Bell, Smokin Joes Pizza, Burger King, SubwayMcDonald’s, StarbucksChipotleKFCWendy’s, and others.

Today, we’ll discuss the swot analysis of Domino’s Pizza; it would analyze the internal and external factors impacting the world’s leading pizza chain restaurant company. Here’s the swot analysis of Domino’s Pizza as follows;

Strengths of Domino’s Pizza 

Innovation

Domino’s Pizza keeps updating and revising its menu according to the customers’ demands. For instance, the chain restaurant improved its product menu for the US market by adding cheeseburgers, chicken taco, and chicken wings. The diverse items in the menu provide a lot of choices to the customers when they come for shopping. It has allowed the company to build a large database of customers through the diverse menu and its offers.

Technology

According to an estimate, approximately more than 50% of the sale of Domino’s Pizza comes from the online and digital media platform in 2020. However, the company has developed a partnership for autonomous pizza delivery service since 2019. The chain restaurant company launched a new feature “GPS Tracker” and it allows user to track their order from the time of placing the order to the final delivery. All of these features have helped the company to increase its earnings during the pandemic of covid-19.

Marketing

Marketing and advertisement play a significant role in the promotion of any business. Domino’s Pizza is aware of the fact, that’s why the company spent 6% of its sales earnings on marketing and advertisements. However, the company spends a plethora of resources and uses various social and digital media platforms to reach the target audience.

Supply Chain

According to an estimate, the supply chain of Domino’s Pizza leases over 900 trailers and tractors. The company has approximately 21 and 5 dough manufacturing facilities and supply chain units in the USA and Canada respectively. However, the company has established an extraordinary supply chain and even the pandemic of covid-19 didn’t affect its sale and growth.

Global Brand

Domino’s Pizza is a multinational retail pizza brand and the company is operating its business in more than 90 countries across the world. However, the company has established the reputation of offer quality Pizza not in the USA, but also across the globe.

Brand Value

According to an estimate by Forbes, the market capitalization of Domino’s Pizza in 2021 was 17.78 billion dollars. The chain restaurant company ranks at the 1756th position of the Global 2000 companies in 2021. It ranked at the 86th position of the Innovative Growth Companies in 2016.

Weaknesses of Domino’s Pizza 

Low Diversification

As we know that Domino’s Pizza has a network of 11000 stores in over 90 countries. The international market contributes only 6% of the total revenue. However, the company overly relies on the US as its main source of income. It’s a very risky strategy and the company diversifies its business resources.

Franchising Model

Domino’s Pizza follows the franchising business model and owns only a limited number of stores. The company manages a vast number of franchisees and has to follow regulations relevant to franchising. However, the franchising business model has some flaws like you don’t have quality control over the franchisees. The franchise owners have complete autonomy over the store.

Opportunities available to Domino’s Pizza 

Global Expansion

The USA is the major earning market of Domino’s pizza. The chain restaurant company should expand its business globally by opening up new franchises. While expanding, the company should prefer to expand in those international that is growing and has great growth potential. It would help the company to diversify its earning.

Market Research

The market trends and customer preferences keep on changes. Therefore, Domino’s Pizza should conduct market research repetitively over time. It would help the company to be in contact with the customers’ needs and wants so that the company would change its offers accordingly.

Cloud Technology

Tech business and cloud industry have made tremendous growth during the pandemic of covid-19. However, Domino’s Pizza has to deal with a large amount of customers’ data every day. The usage of cloud technology would help the company to increase its speed and efficiency of the company.

Digital Media

Approximately more than 50% of Domino’s Pizza’s annual sale comes from the digital media. The pandemic of covid-19 has amplified the usage of digital and social media platforms, and it would continue to grow. That’s why the company should invest in the growth of digital and social media platforms. It would help the company to strengthen its growth and market position.

Threats Domino’s Pizza has to face 

Regulations

Domino’s Pizza has to face many laws and regulations in the US and across the world. Some of those regulations are product quality, labor standards, food safety, web laws, taxes, and many others. The complexity of these regulations increases the administration cost and makes it difficult for the company to operate its business.

Competitors

Papa John’s, Pizza Hut, McDonald’s, Burger King, KFC, Starbucks, and others are some of the main competitors of Domino’s Pizza. They’re competing with the company at different levels like customer service, marketing, tech innovation, product innovation, quality, and profitability. It puts great pressure and the company has to spend extra resources in order to stay in the competition.

Pandemic

The pandemic of covid-19, worldwide lockdown, and economic recession had a disastrous impact on many businesses and companies. The increasing regulations and SOPs have increased the cost of operating the business. If it keeps on going like this, Domino’s Pizza could be the next target.

Conclusion: Domino’s Pizza Swot Analysis 

After an in-depth study of the swot analysis of Domino’s Pizza, we’ve concluded that Domino’s Pizza is indeed the world’s leading pizza chain restaurant company. The increasing competition, pandemic, regulations, limited diversification, and franchising business model are some of the main issues. Domino’s Pizza should diversify its business market and portfolio in order to address these challenges.