Essay on Marketing: Recession and Pizza

Submitted By leo682683
Words: 3232
Pages: 13


1. Introduction---------------------------------------------------------------------------------2
2. External macro forces faced by Domino’s Pizza-------------------------------------3
1. Political factors-----------------------------------------------------------------------------4
2. Economic factors---------------------------------------------------------------------------4
3. Social factors--------------------------------------------------------------------------------5
4. Technological factors----------------------------------------------------------------------5
3. Strengths and weaknesses of Domino’s Pizza----------------------------------------6
4. Opportunities and threats faced by Domino’s Pizza--------------------------------7
5. Recommendations for Domino’s Pizza-------------------------------------------------9
6. Conclusion----------------------------------------------------------------------------------11
7. References----------------------------------------------------------------------------------12

1. Introduction
Domino’s Pizza was founded in 1960 by two brothers; it is an American restaurant chain and international franchise pizza delivery corporation. Today, Domino’s Pizza has become as the second-largest pizza chain in the US (after Pizza Hut). Domino’s Pizza delivered pizzas internationally since 1983, nowadays; it has more than 1000 corporate and franchises stores in 70 countries, such as Canada, China, India, Japan, France, UK, Poland, Greece, South Korea and many other countries. It is employing approximately 145000 employees for its daily globally operations. Smith (2007) said that the pizza industry was highly saturated by the late 1980s, which means the pizza industry is very competitive; Domino’s Pizza is facing thousands of competitors. This report firstly will use PEST framework model to analysis the pizza industry and then discuss the impacts of these external macro forces on Domino’s Pizza. Secondly, this report will indentify the strengthens and weaknesses of Domino’s Pizza. Thirdly, it is going to find out what opportunities and threats that Domino’s Pizza is having, and then recommendation will be made for Domino’s Pizza to seize the opportunities and counter the threats. Finally, this report will summarize what author has discussed.

2. External macro forces faced by Domino’s Pizza

Table 1: PEST Analysis Framework
(Source: Sargeant et al, 2010)

According to above table 1, PEST stands for political, economic, social and technological factors. For example, political factors refer to environmental regulations and protection, employment laws, government attitude, safety and health regulations etc; economic factors are including economic growth, stage of the business cycle, exchange rate etc; social factors are associated with changes in lifestyle, habit, health, culture, living standards etc; technological factors are related to information technology, internet etc (Sargeant et al, 2010). The PEST analysis framework is applied to analysis the macro environmental influences influencing the companies’ developing currently as well as in the future (Norton, 2008). Afuah (2009) indicated that PEST framework can help managers to explore the threats and opportunities faced by organizations. That will be very helpful for managers to make out appropriate strategies to survive and success. The following parts will discuss the impacts of PEST factors on Domino’s Pizza.

1. Political factors
Domino’s Pizza will be affected by different political factors in different countries, for example, the food safety is critical to the success of food industry. There are more and more countries, like the big market of China, upgrade their food safety regulation and standard in order to ensure the quality and health of the food. D’Mello (2003) said that some countries, like European countries, Japan, Hongkong, and America