Question: Instruction: Based on the Case Study below answer ALL Questions. 1 ponit one paragragh with example. (one question at least require 5 points) Dominos Growth
Instruction: Based on the Case Study below answer ALL Questions. 1 ponit one paragragh with example. (one question at least require 5 points)
Dominos Growth Strategies
Headquartered in Ann Arbor, Michigan, Dominos is the second-largest pizza chain in the United States behind Pizza Hut. Dominos has over 10,000 delivery-only stores in about 70 countries and in all 50 states. Among the 5,000+ Dominos in the United States, only about 400 are company-owned; all others are franchised. Between 2011 and 2015, Domino opened 1,800 stores in 10 countries. Currently, Dominos has reported 85 consecutive quarters of positive same-store sales in its international business. Dominos earnings and revenues are rising dramatically.
The company remains committed to accelerate its presence in high-growth international markets to boost its business. Dominos clearly is growing globally the right way. In addition to building new stores and adding new franchisees, Dominos has also recently revitalized its menu with Pan Pizza and Specialty Chicken. In addition, it has instituted mandatory reimaging of stores, which has received an overwhelming positive response from franchisees. The company has completed redesigning almost 15 percent of its U.S. stores and just over 25 percent of international stores.
Given the response of customers at the reimaged stores, Dominos intends to continue remodelling both its company-owned and franchised stores. Furthermore, Dominos is investing heavily in technology-driven initiatives such as digital ordering to boost sales.
However, like other food chains, Dominos margins have suffered due to higher commodity costs. Costs of cheese, meats and other ingredients have recently risen sharply. Prices of food commodities are expected to continue rising due to worldwide agricultural supply and demand imbalance and other macroeconomic factors. These rising costs are expected to continue to hurt margins further.
1. Dominos have simultaneously pursued a combination of intensive strategies successfully. Evaluate the actions taken by Dominos in terms of TWO (2) intensive strategies applied to achieve high market growth in the international market.
2. Owing to rising commodity costs, discuss an appropriate integration strategy in detail to overcome this problem faced by Dominos. Justify your discussion with relevant examples
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