Domino’s, the international pizza delivery chain

 

Please provide answers to the case-based questions below:

On Wednesday, January 5, 2011, The Guardian newspaper reported that Domino’s, the international pizza delivery chain, had “once again smashed expectations” showing a “double digit growth in sales.” There were many reasons for this success, but the article pointed to the role of online ordering, which now accounted for a third of total orders. In September 2010 the firm had also launched its iPhone app, which, according to Domino’s, had been instrumental in the growth effort. Chris Moore-the CEO of Domino’s Pizza UK commented in the article: “We have set ourselves some challenging targets to beat in the coming year, but we believe that a great product, supported by exemplary customer service and innovative marketing, will continue to recruit new and retain existing customers in 2011.” The iPhone app automatically detected the Domino’s location closest to the customer. Once logged into the application they could either select from the standard menu or from an available list of specials from the chosen location. They could also request a custom order by selecting pie size, crust type, toppings and any other possible personalization (e.g., extra sauce). One of the advantages of the iPhone ordering application is that it did not require the customer to talk to a restaurant employee on duty. As a consequence the app enabled customers to place orders, even during store closing times, and schedule delivery for a specific date/time. Upon completing their order, customers would pay and then could track the progress of their pizza up to the delivery stage, through the preparation, backing, and quality assurance steps.

Source: Piccoli, G. (2012) “Information Systems for Managers”, 2nd edition. Wiley publishing. https://b-ok.cc/book/1925254/a3e81d

Answer the following questions:

1- Analyze the competitive environment of Domino’s Pizza using Porter’s five forces model (8 marks). You can use your general knowledge about the pizza and restaurant industry in your answer; you do not have to limit your analysis to what’s in the short case.

2- What is Domino’s business strategy and how is information technology used to support that strategy? (6 marks).

3- Do you believe that the iPhone app can be a source of competitive advantage for Domino’s? Explain (6 marks).

4- Depending on your answer for Question 3 above, answer one of the following questions and support your answer (5 marks)
If you think it is not a source of competitive advantage, what does it take for the system to provide a competitive advantage?
If you believe it is a source competitive advantage, is that advantage sustainable?

 

Sample Solution

Domino`s Pizza is an international fast food chain that has established a strong position in the global fast food industry through its market presence in more than 85 countries. Making an entry into the local fast food industry requires less capital investment as compared to the international one. Companies that are aiming to develop a global market presence may find this industry a capital intensive one due to this factor. The production line may be able to gain some benefit due to economies of scale and purchase of bulk quantity. However, the main area of profitability remains sales volume generated through customer orders. Contrary to global fast food chains, a local fast food business involving the production of pizza, burger and other fast food menu items faces lower entry barriers. Domino`s Pizza is operating on global scale, therefore, it is a part of an industry that is marked by moderate level of threat of new entrants (Petzer et al., 2006).

ntelligence This specific procedure of venture examination basically assists with assessing the profits that is normal from the undertaking by thinking about of the speculation expected in a task and incomes that is normal from a task (Dyson, and Berry, 2014).

So fundamentally, administrators can involve differed strategies of venture evaluation for item that the Access knowledge are creating which assists with examining the undertaking’s capacity of getting financial advantage from shifted angles. So basically unique speculation examination method assists in assessing the net money with streaming, some to decide the recuperation season of the underlying venture and some strategy help to decree the return that is created from the item advancement. In this manner administrators should involve different venture as examined in above area before advancement of the items.

Adequacy of corporate Governance at Access Intelligence:
It is obvious from an inside and out investigation of the corporate administration of Access Intelligence that the organization isn’t following a most significant level of corporate administration. The corporate guidelines doesn’t observe the most noteworthy and the most determined degree of corporate administration. The administration has advanced a reasoning for this, as Access Intelligence being an AIM organization, the association isn’t expected to follow the UK corporate Governance Code as ordered by the Financial Conduct Authority. The administration obviously expressed that that the gathering is simply dedicated to adhere to the corporate administration guideline according to it equivalent with its size. The use of the most extensive level of corporate administration ought to be high assuming that the organization will expand the size of the organization. Since the organization’s administration is hesitant to put a successful corporate administration instrument, it tends to be plainly expressed that administration isn’t willing to expand the size which is without a doubt a question of worry of the financial backers. So it tends to be appropriately expressed that corporate administration standards are not observed really in the organization and subsequently most elevated guideline of corporate administration are not continued in the organization’s corporate framework (Wintoki, M.B., Linck, J.S. what’s more, Netter, 2012).

It could likewise be broke down that however there is appropriate board for taking urgent choices and obligations and a few unique councils, for example, review panel, compensation board of trustees and selection council that has been comprised by the board for interior controls. According to the subtleties of the review board of trustees , it is clear that review panel just met double cross in the monetary year 2017 and just examin

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