Case 6 – Domino’s Pizza: A Case Study in Organizational Evolution
Overview of Domino’s Pizza Domino's Pizza is an international pizza delivery corporation headquartered in Michigan, United States. Founded in1960, Domino's is the second largest pizza chain in the United States and has more than 9,300 corporate and franchised stores in 65 international markets and all U.S. states.
Question 1: Internal Analysis of Domino’s Pizza
The internal analysis will look into how Domino’s Pizza uses their resources to create value in their products and services while gaining a competitive advantage against their rivals. The RCC Model is used in this analysis to look into the different set of resources and capabilities that Domino’s Pizza is equipped with.
Resources
Resources are made available for the use of the firm, both tangible and intangible resources while capabilities are the concerted effort to purposefully integrate resources together. In Figure 1a below, we will identify the tangible and intangible resources of Domino’s Pizza.
Figure 1a
Tangible Resources
Physical 454 company-owned stores, 4,475 franchise stores and 4,422 international franchise stores Own Commissaries
Technological Niche in their ordering and delivery processes Implement mobile application or ordering
Financial Net income has increased from 2007 to 2010 Reduction in total debt over the past 4 years US$170,000 in revenue per store for 2010
Intangible Resources
Human Resources/Leadership Strong leadership of David Brandon Inclusive management technique One size does not fit all leadership style
Reputation No. 2 in the Top 50 U.S. Pizzerias No. 1 in the pizza delivery segment Known not only in U.S. but worldwide
Innovation Formulation of their own pizza recipe Expansion of their traditional pizza only menu “Tate” – the secluded chicken chef within a pizza company
Tangible Resources
a. Physical
References: Textbook: Ireland, R.D., Hoskisson, R.E., & Hitt, M.A. (2011). The Management of Strategy: Concepts and Cases. (10th ed). South-Western, Cengage Learning. Internet: http://www.slideshare.net/DavidSorianoMcGuinness/creation-and-development-of-a-mobile-application-for-dominos-pizza-espaa http://www.wikinvest.com/stock/Domino%27s_Pizza_%28DPZ%29/Business_Strategy http://online.wsj.com/article/SB10001424052748704779704574552080042033284.html