Case Study Essay

Submitted By brianvalen
Words: 1883
Pages: 8

Domino’s Pizza

One of the largest Pizza chains in the US and International. In the following sections, we will assess the environment analysis on ‘consumer satisfaction’ and its re-formulated pizza recipe. Within the re-formulating and the expansion of its menu, we will see how they have been able to capture some of the market with existing and new customers, with customer satisfaction and excellent delivery. Domino’s Pizza, for example, they have re-formulated their ingredients and added new items to their menu, but like Pizza Hut, Papa John’s, and Little Caesar, we will discuss their strength’s and weakness to be able to survive in the Pizza Industry. Within this report, I will cover the existing/future components of the general environment such as demographics, economics, political/legal, sociocultural, technological culture, and their efforts to remain a competitor in the industry.

Political Legal

From a legal standpoint the in the Food Service Industry, there are certain laws and regulations to be met prior to entering the food service industry. For example, Domino’s has to meet strict health and insurance requirement’s, such as Business Property, Business Liability, Business Crime, and Worker’s Compensation Insurance to Operate a business. They’re other competitors such as Pizza Hut and Papa John’s that have to purchase these insurance to protect their business. Some of the protection covered by these Insurances are property damage, incase of a fire, Business liability, that protects them from any accident that may occur at the restaurant, or illnesses that the food may cause, Business Crime, covers theft and robbery, and Workman’s Compensation, that represents the interest of injured workers in the workplace. Their main use is actually to protect the business from an economical downturn.

Economics and Technology
Within a business, the expansion of their products or service is solely meant to increase revenue. The biggest challenge they face, like food industry, is to determine whom to expand, and whom to offer to while making a successful business. From a global perspective, the industry had a strategic planning as far as researching which countries can they introduce a new product and service. Whether its pizza, wings, sandwiches, and pastry, the goal was to bring awareness that other products and services are available. In 2009, there were sales of 11.22 million dollars between the top 4 competitors; Domino’s alone had sales of 3.03 million dollars and in 2010, they had 2.95 million in international sales only. US pizza sales were dominantly shared between independently owned pizzerias, Pizza Hut, Domino’s, Papa John’s and Little Caesar’s, combined owned more than 82.57 % and in 2010, it increased to 85.48%. Another technological trend that was introduces for convenience purpose was on-line ordering. Many people love this new trend because, they are able to view the entire menu and choose exactly what they want on their pizza without being rushed, and they are able to look at the final price, not getting to the register and have a surprise waiting for them.

Social Culture and Global

Domino’s has taken the initiative the re-design their recipe, and offer new products and better service. Currently they offer services in US, Canada, UK, Africa, South America, and other parts of Europe. Domino’s networks 4,422 international franchise stores located around the world. Their competitors such as Pizza hut also offer their services in the same areas; they offer their services in 95 countries. Domino’s has also introduces social media, such as twitter, these types of applications provide users with the ability to share information. Other benefits from twitter are that people can virtually access them from any device and follow updates, events, and other information from computers, mobile devices (iPhone, androids, and tablets) as they please.

Demographics

People in general are