In the early 1900's the Pizza was introduced in the United Sates. This was because there where a huge number of Italian immigrants who introduced the Pizza to the country. The pizza industry grew even more after the World War Second when the GI's returned of the US from Italy. At that time pizza began to be a part of the American lifestyle.
1945 to 1960 pizzerias began opening all over the country. At this time the pizza stores were privately owned, but after a while the chains of Pizzas chained the market patterns. 1958 Pizza Hut started business and has now over 7500 units in the US, in 1959 Little Caesar opened tarts in Michigan and now the chain has more than 2500 units. 1960 Domino's Pizza developed a start-up plan in Indiana and has now over 5000 units in the US. At last Papa John's opened up a business in Indiana in 1989 and has now nearly 3000 units in the US. Today there are nearly 68,000 pizzas starts all over the US.
The pizza segment of the food industry represents 11.7% of all restaurants and accounts for more than 10% of all food service sales. Between June 2008 and June 2009 the US pizza industry recorded nearly $37 billion in sales.
[...] It is also relevant that Domino's Pizza is introducing CRM. Customer Relationship Management is very important nowadays. It is all about customer loyalty to the brand and to the product. It is important that the firm communicates its brand and for what it stands for. Maybe Domino should leave the strategy cost leadership and should start to focus on quality and on product diversification. People will spend more money on quality and on diversified products even when the prices increase. [...]
[...] Fast food/ limited service: No table service but with tables and shares, often take away or delivery service 4. Mobile service: order online and deliver or take out 5. Take out: customized pizzas made for customers to take away 6. Take n Bake: customized pizza for customers who want to bake it themselves at home (http://www.franchisedirect.com/foodfranchises/pizzafranchises/pizzaindust ryreportbusinessmodelsandmarketleaders/80/276) Key opportunities and threats have to be analysed to find the best way to develop a strategy for the long term run and to use the key opportunities and to eliminate the threats via a good risk management. [...]
[...] Papa John's is between question mark and dog, that means that the tendency for them is going down as they would otherwise more likely go toward the star part of the graphic. Domino is between dogs and cash cows that mean they don't really generate profit but they also don't need that much investment to do so. Environment Analysis: Industry's evolution, key opportunities and threats: What are the key external factors affecting the company's performance? Explain. This gives a short overview about the US Pizza franchise industry and the industry evolution. Pizza is a very important part of the American lifestyle. [...]
[...] The threats of Domino's Pizza are the following: There is a high competition in the Pizza industry. This can lower Dominos profit immense and the competitors could get Dominos market share through superior products. Another threat could be the changes in consumer behaviour, demand and taste. The consumers all around the world want to live healthier. Due to the fact that Domino is a consumer good, the company relies on the consumer demand. If it changes rapidly the company has to adapt to not loose sales. [...]
[...] Domino's Pizza: A case study in organizational evolution Table of Content 1.) Brief company's description. Company's history, industry in which the company competes, how would you describe this industry in terms of is life- cycle? 2 2.) Competitive Profile Analysis: select the three major competitors plus Domino's in the industry, use total sales to select those competitors. Using the following key competitive factors develop a Competitive Profile Matrix for Domino's analysing each competitor position against these factors 2 a.) Change in Sales from 2008- b.) Market Share 2 c.) Operating profit 2 d.) Gross margin 2 e.) Geographic position (distribution or location) 2 f.) Brand positioning 2 g.) Price 2 h.) Quality 2 3.) Develop a Boston Consulting Group Matrix with the same key competitors in the market as above. [...]
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