Domino's Pizza Strategy

1. Domino’s has successfully grown its international presence very quickly. Compare and contrast its strategy with that of another well-known international fast food operation, McDonald’s. What similarities do you see? Are they any significant differences between the two companies? What has led to the success of Domino’s?

Domino's Pizza and McDonald's developed themselves by confronting similar obstacles.

Basically, the two companies wanted to extend their own model by retaining the original, with the same offer and the same restaurants. However, both companies became aware of the importance of adapting to the host countries. Indeed, they have adapted to taste preferences and culture. For instance, Domino’s has different delivery methods depending on the areas. This is a reason why franchising has allowed Domino’s to settle in many places while minimizing financial risks. Also, we must not forget that the two companies deliver food. So, the key to success was to deliver products that customers like, and deliver them as soon as possible in accordance with their respective commitment. Domino’s was a pizza delivery company, not a pizza company. But they had to focus more on the products, mainly because of its new competitors. For instance, they now cook their pizza with real cheese. It explains why Domino’s corporate strategy is “think global and act local.”

In addition to have a worldwide network with their franchisees, both companies have an important brand image which results in very loyal customers. Developing the ‘same’ strategy has allowed them to lead in competitive advantage.

There aren’t any significant differences between both strategies of the companies. One is a fast-food restaurant with ‘drive’ services, and the other one is a delivery pizza company, with services offered, an important variety of affordable pizzas, no waiting time in the outlet and door step services. Both companies act differently and don’t offer the same services, even though they have the same strategy of expansion and adaptation.

For all that, Domino’s found a specific way to be known and recognized. Domino’s makes its brand image differentiated. The core structure of the company has mostly led to its success. They have a global approach and a profitable value-added distribution system. The training is critical; Domino’s is building loyalty not only towards its staff but also towards its customers. The (re)positioning is also important for the company: they are now seen as a ‘low-cost’ family food, providing pizzas for family, or slices of pizza for individuals, as soon as they want (in less than 30 minutes). Moreover, they have a strategic alliance with Coca-Cola, one of the most famous soft in the world, and they perfectly control enlightenment self-interest in specific areas.

2. Domino’s owes its rapid expansion