Domino's is the largest pizza delivery company in the US with over 5,000 stores. It has strong brand awareness and cash flow from its established franchise system. Domino's has succeeded in some countries like Taiwan, Mexico, and Japan by being locally responsive to factors like cultural preferences and operational strategies. However, it has failed in other countries by not adequately considering access to financial resources and the need for balanced home and host country strategies. To improve internationally, Domino's should invest more in franchising to maintain local control, and focus on knowledge sharing between stores and countries. A joint venture approach may also help improve performance in struggling markets.

1. Domino’s Pizza International Inc.
1- What are the key growth drivers for Domino's?
N° 1 pizza Delivery Company in the United States with a leading international
presence: They are the number one pizza delivery company in the United States with a
17.5% share based on reported consumer spending. With 5,047 stores located in the
contiguous United States, their domestic store delivery areas cover a majority of U.S.
households.
Strong cash flow and earnings stream: their stores economics have led to a strong,
well-diversified franchise system. This established franchise system has produced
strong cash flow and earnings for them.
Strong brand awareness: Domino’s Pizza brand is one of the most widely-recognized
consumer brands in the world. We believe consumers associate our brand with the
timely delivery of quality, affordable pizza and complementary side items.
2- Why Domino's has been very successful in some countries and failed
miserably in others?
The strategy of Domino’s pizza worked in few countries such as: Japan, Mexico and
Taiwan. But failed miserably in other countries, that’s because it didn’t take into
consideration few factors that are very important for success :
- First is the access to financial resources: Which means that in few countries the
investment wasn’t enough in order to launch the business of Pizza.
- Second thing is the degree of local responsiveness: is the willingness to let the
franchisees make adjustments to their products, services, and ways of conducting
business at the local level, taking into consideration local culture and needs.
Although it is costly, local responsiveness is driven by consumer tastes and
preferences. i.e. in Mexico, they prefer the carry-out so they built bigger stores
with more parking.
- Last but not least, Domino’s needs to find an Alignment of home-host country
operational strategies: in other words to find a balance between the strategy of
the home-country and the host country. It’s like finding a compromise.
Examples of success of Dominos’ strategy:
- Taiwan: Financial resources, Extensive operational and cultural knowledge,
Operating profit 10 billion $
- Mexico: Locally responsive: carry-out preference, Location, Operating profit 8
billion $
- Japan: Locally responsive: High contextual information provided to financial
partners, Aligned pizza toppings with consumer preferences. Operating profit 7
billion $

2. 3- What would you suggest in order to improve their international
operations?
Well, in order for Domino’s pizza to improve its international operations:
First recommendation is to invest more in Franchising because it’s profitable and it
allows more centralized control while simultaneously maintaining the local
responsiveness, in the contrary of the joint venture.
The second recommendation to take into consideration is the focus on learning and
sharing of knowledge between stores in a local level, and between countries in
international level such as: new innovations should be shared within regions, and best
practices should be implemented everywhere. To put it simply Domino’s should be one,
strong organization.
To sum up, Domino’s Pizza franchise strategy works well if they are looking for not to be
affected by profits or losses. Because it only allows them low control and low
involvement in foreign investment. However, it may be beneficial for Domino’s Pizza to
utilize a Joint Venture approach, if they want to improve performance in struggling
countries.