2. S.W.O.T analysis
S.W.O.T. stands for Strengths, Weaknesses, Opportunities, and
Threats.
A SWOT analysis is an organized list of strengths, weaknesses,
opportunities, and threats of individual or a business.
Strengths and weaknesses are internal to the company while
opportunities and threats are external to the company.
It helps in understanding your competitive advantages &
disadvantages
Finding things to improve about your organization
Understanding why some aspects of your organization are
struggling
3. Brand recall - High brand recall due to its regular advertising with tagline.
Fantastic channel network - It has 9000 plus franchise and company
owned outlets.
Quick service - Quicker than expected service delights the
consumer
Low cost alternative - The prices of pizza is reasonable with
vast variety.
Efficient supply chain - Its efficient supply chain does not
make the customer to wait.
Strength
4. Weakness
Need investment in new technology - Domino's Pizza needs to put more
money in technology to integrate the processes across the board.
Not very good at product demand forecasting - It lead to higher rate of
missed opportunities compare to its competitors.
Limited success outside core business - It has faced challenges in
moving to other product segments with its present culture.
Lower Income from International Segment - It is mainly relying on the
income generated from the United States, which holds 94% of the total
income.
Issues in Franchising Model - The franchise owners have full autonomy
over the stores, making it difficult for Domino to operate.
5. Opportunity
Digital technology - Domino’s has enjoyed growth during this period driven
by increased sales from digital channels. In 2020, more than half of its
sales were conducted through digital channels.
Market research - Consumer preferences and market trends keep
changing so domino’s also needs to focus on market research since it
operates in a highly competitive industry sector.
International expantion - The company must focus on expanding into
newer markets and particularly, the emerging, higher growth economies
Market development - The market development will lead to dilution of
competitor’s advantage and enable Domino's Pizza to increase its
competitiveness compare to the other competitors.
Increase in customer spending - After years of recession and slow growth
rate in the industry, is an opportunity for Domino's Pizza to capture new
customers and increase its market share.
6. Threats
Hyper competition - Domino’s has a large number of competitors,such
as Pizza Hut.
Compliance Issues - Dominos may face legal challenges in different
countries, as they all have a complex structure of laws.
Healthier food - Changing consumer habits towards healthier food
choices
Shortage of skilled human resources - Given the high turnover of
employees and increasing dependence on innovative solution, company
can face skilled human resources challenges in the near future.
Commoditization of the product segment - The biggest challenge for
Domino’s Pizza Is the increasing commoditization of the products in
Services industry.
