SWOT Analysis of Dominos focuses on (S) Strengths, (W) Weakness, (O) Opportunities, and (T) Threats. Internal Factors Strengths and Weaknesses and External Factors Opportunities and Threats are discussed in this article.
SWOT Analysis is a proven management tool that helps organizations such as Dominos to assess the market of Dominos and its success against rivals and industry. Dominos has been one of the leading Pizza brands for many years.
Dominos is one of the world’s leading pizza chains. Dominos has close competition with Pizza Hut. But Dominos has a good market as compared to Pizza. But Domino’s also has a long way to go compared with indirect rivals like McDonald’s and KFC. Here is the Dominos SWOT Analysis.
Strengths in the SWOT Analysis of Dominos – Dominos SWOT Analysis
- Brand Recall: High brand recall because of its regular tagline advertising such as ’30 minutes Nahi to free’ This aggressive marketing has built visibility & a business opportunity for the company.
- Fantastic distribution network: Dominos has a vast network spanning across more than 60 countries with its 9000 franchise & company-owned outlets.
- Fast service & deep menu: Faster than expected service delights customers and helps distinguish the business from others. In India, Domino’s is seeking to draw people of the upper and lower middle class who are interested in spending their money on pizza but at a low price. Such people are willing to go to any festival for an outing and want the cheapest and safest family restaurant. It would be preferable to the Dominos.
- A low-cost alternative: they don’t need high-class Ambiance or fun in the shop so the establishment costs are low for the dealers and the pizza price is very fair for the clients.
- Better alternatives: To combat customer perception of health, Dominos is trying to improve their dough by getting better fats, which is achieved by adding more whole wheat into their crusts. Also, the pizza toppings are getting healthier and some pizzerias introduce salads into their menus.
- Effective supply chain: Dominos has made possible quicker delivery because of its robust supply chain and consumers don’t have to wait long. Dominos’ choice is that the customer should get home delivery within 30 minutes. It takes 15 minutes to make a quick breakfast at home.
Weaknesses in the SWOT Analysis of Dominos – Dominos SWOT Analysis
- Operations: A large number of franchised outlets lead to operational handling difficulties. Quality management is becoming difficult too. Because of this, some Dominos outlets have been closed impacting the brand’s reputation.
- Decreasing sales in mature markets: There is a decrease in revenue affecting the business as a whole due to an increase in the health-conscious population.
- Low retention of staff: High attrition due to lack of adequate training & development is a major challenge for Dominos. Plus the manpower working is often unskilled and they change jobs easily when they are unable to adjust to the hectic climate.
- Less number of eateries: Dominos has more delivery outlets then eating joints, which is a problem particularly in places such as malls and other places where customers obviously want a seat.
Opportunities in the SWOT Analysis of Dominos – Dominos SWOT Analysis
- Market expansion: As established markets grow, spreading to the emerging markets would be advantageous for the Pizza industry. The company’s future strategy should be to target the developing economies.
- Penetration: Strengthening its distributor network by expanding deeper into the existing market would help Dominos boost revenues.
- Health-conscious eatables: The launch of a health-conscious menu with new low-fat flavor ingredients would result in higher future revenues.
- Restaurants: By introducing exclusive Dominos restaurants in cream areas, the brand will be helped with more brand recognition, as well as helping to get customers who like eating outdoors in plush restaurants.
Threats in the SWOT Analysis of Dominos – Dominos SWOT Analysis
- Strong and Indirect Rivalry: Intense competition from local and national players such as “Pizza hut,” pizza from the USA, and more. Indirect competition is actually more from McDonald’s and KFC likes where customers prefer burgers over pizza.
- Changing Consumer Eating habits: With government & NGOs concentrating more on health consciousness, consumers are becoming more aware of what to eat and what to avoid that affects Domino’s business.
- Cost: As the cost of vegetables and raw materials increases, so does the cost of keeping the pizza chain going up. Plus, the rivalry has an effect on the company’s bottom line. Therefore it is impossible to control the cash flow.
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