Critical Analysis Of Domino's Pizza

4. Porters (market environment)

Competition in the industry
Domino’s has several competitors and rivalry is not uncommon. Growth amongst pizza chains is very slow. This means that the customer base does not grow as fast as the industry. It’s very difficult for pizza chains to “make it” quickly, this leads to high rivalry among different firms. Many companies offer the same product.

The main competitors of Domino’s Pizza are Pizza Hut and Papa John’s. A Competitive profile matrix was done by Atacan Garip at the Yildirim Beyazit University Business School, Domino’s and its two main rivals were compared. It was concluded that Pizza Hut has power among competitors in terms of the following critical success factors (CSF).

Domino’s
Pizza

This is because new entrants in the industry brings innovation and a new way of doing things.
Domino’s Pizza can approach the threats of new entrants in several ways:
• Innovating new products and services
- Having new products will not only open up the target market and bring in a number of new customers, but it will also give old Domino’s customers a reason to continue purchasing the company’s products.
• Spending money on research and development.
- This should be done to enhance Domino’s value proposition to its customers and increase its market share.
• Better quality but at an affordable price.
- People are looking for quality food and healthier options but they want to get this through the fast food service and for it to be affordable.

Bargaining Power of Suppliers
There are several supplies where companies within the Restaurant industry can buy their raw materials from. The impact of higher supplier bargaining power is that it lowers the profitability of the company.

Bargaining Power of Customers
In other places of business, customers may have a high bargaining power. For Domino’s Pizza, however, their bargaining power is low. The smaller the customer base, the higher the bargaining power of the customers. They will also have a bigger chance of having discounts and special

The first thing is to implement new technology to keep up with their competitors. Also, looking at alternative methods of transportation to get their customers their food at a quicker time.

Pizza Hut is looking at drones to deliver their products, just like amazon prime. This is something that Domino’s can also do in order to keep up with its competitors.

Something else they can do is look at expanding their budget in order to expand their stores. This is so that the dine-in option can be made available to consumers. According to the survey I conducted, 29,4% of people prefer to sit down at the restaurant. Although it is not necessarily a large amount, I’m sure more people would be interested in sitting down to eat if the eating area is clean, tidy and nicely decorated.

Another problem that Domino’s faces and where Pizza Hut is considered to be better than them is that Pizza Hut offers a banting menu. Domino’s South Africa should look into expanding their menu further in order to provide for the customers who have a healthier