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Weaknesses

Domino's India is facing several challenges that are negatively impacting its business and market valuation. Increased competition from local and international brands has led to declining sales. Additionally, changing consumer habits and preferences for healthier options have reduced demand for pizza. Domino's inability to adapt quickly to these changing market conditions and launch new products is hindering its ability to retain customers and market share. While Domino's once dominated the Indian pizza delivery market, it now faces stiff competition that is threatening its leading position.

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979 views

Weaknesses

Domino's India is facing several challenges that are negatively impacting its business and market valuation. Increased competition from local and international brands has led to declining sales. Additionally, changing consumer habits and preferences for healthier options have reduced demand for pizza. Domino's inability to adapt quickly to these changing market conditions and launch new products is hindering its ability to retain customers and market share. While Domino's once dominated the Indian pizza delivery market, it now faces stiff competition that is threatening its leading position.

Uploaded by

shyamili
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Weaknesses

. :
1 Operations Large number of franchised outlets results in difficulty in handling
operations. Quality control too becomes challenging. Due to this, some of the
Dominos outlets got closed affecting the image of the brand.
2. Decreasing sales in mature markets: Due to rise in health conscious population
there is decrease in revenue affecting the business as a whole.
3. Low staff retention: High attrition due to the absence of proper training &
development is a major challenge for Dominos. Plus the manpower employed is
also unskilled so they quickly change jobs when they cannot adjust to the hectic
environment.
4. Lesser number of eateries: Dominos has more delivery outlets then eating
joints which is a problem especially in places like malls and other locations where
clearly customers want a sitting place.

Opportunities
Market Expansion: Expanding to the developing markets will be beneficial as far
as Pizza industry is concerned, as developed markets are maturing. Targeting the
developing economies should be the future strategy of the company.
Penetration: Strengthening its outlet network by further penetrating the current
market will help Dominos to increase its revenues.
Health conscious eatables: Introducing health conscious menu with new flavor
additives which is low in fat will result in increasing it revenues in future.
Restaurants: By introducing exclusive Dominos restaurants in cream areas will
help the brand with more brand recognition and will also help in getting the
customers who like to eat outside in plush restaurants.

Threats
Direct and Indirect Competition: Intensive competition from the local & national
players like “Pizza hut”, US pizza and more. In fact, Indirect competition is more
from the likes of McDonalds and KFC wherein customers prefer burgers over
pizza.
Changing Consumer Eating habits: With government & NGO’s concentrating more
on health awareness, people are becoming more aware of what to consume &
what to avoid which is affecting the business of Dominos.
Cost: As the cost of vegetables and raw materials rises, the cost of maintaining
the pizza chain also goes up. Plus, competition affects the bottom line of the
company. Thus managing the cash flow becomes difficult.

3.1 Problems faced by Dominos


Domino’s India, the poster brand of Jubilant Foodworks which solely enjoys over
16% market share is now trying hard to retain its Unicorn status. The stocks have
plummeted to under Rs.1000, merely half of what it held in August 2015 and the
sudden plunge has led to the valuation of the firm to dip below the $1 Billion
mark. With over 1000 stores in India and many more around the corner, Domino’s
India is the second-largest market for Domino’s Inc., the leader being The United
States. While the number of stores is rising, it is surprising that Jubilant
Foodworks has lost over Rs 6,200 Cr. In terms of market value, reaching 6,500 Cr.
From its initial value of 12,700 crores.
The techno boom that helped Domino’s India increase its already flourishing
customer base led to the fall in its profits as well. It is always said, you should
move with the times, and this is where Domino’s has been failing to cope up.
With the increase in the number of food-related applications and the huge
number of new restaurants piling up, the customers received a vast number of
cuisines and food types to choose from. The stifling competition in the fast-food
industry, with many new Food Startups competing with the attention of the custo
Domino’s India has suffered a lot from the growth of local and international
brands as well such as Burger King, Sbarro Pizza, Smokey’s BBQ & Grill, and Insta
Pizza. With the increase of food brands everywhere and many more foreign
restaurant chains setting foot in India, not only Domino’s but giants such as
McDonald’s and KFC have suffered losses as well.mers, led to the marginal
downfall in the Domino’s sales.
3.5 Case Study on Domino’s Pizza:
Branded pizza market stands at about Rs.275-325 crore. We have close to 60%
share of the delivery market. But if you look at the total market, that is delivery
plus dining plus takeaway; we would have a 40 per cent market share” — Rakshit
Hargave, Domino’s Pizza India Ltd.
Just a decade ago, it might have been hard to imagine that the take-out food of
choice for millions of Indians would be a baked food of an Italian origin. Post-
globalization in India, the organized food service industry has finally made its
mark. The total out-of-home consumption is estimated at Rs.40,000 crore, while
the organized food retail services market is estimated at Rs.3,000 crore.
The pizza industry is about Rs.450 crore, growing on par with the fast food
industry at a healthy rate of 25-30%. The category is still in the growth stage and
the country can take about 500 more stores.
A booming economy, coupled with a growing affluent middle class, has
significantly increased the purchasing power of people. The lifestyle habits have
shifted from austerity to self-indulgence. These are some of the several changes
in the demographic structure of the country that are changing several trends,
food being only one of them.
Domino’s Pizza Inc. is an international fast food pizza delivery corporation
headquartered just outside Ann Arbor, Michigan, United States. Domino’s Pizza
began in 1960 when Tom Monaghan and his brother James bought “Dominick’s
Pizza”, a small pizzeria in Michigan. The deal was secured by a $75 down payment
and the brothers borrowed $500 to pay for the store.
Eight months later, James quit the partnership and traded half of his business to
Tom for a used Volkswagen Beetle. With Tom as the sole owner of the company,
Dominick’s Pizza became Domino’s Pizza. As of 2006, it had 8,000 corporate and
franchised stores in more than 54 countries. It was the second-largest pizza chain
in the United States.
Domino’s constantly strives to develop products that suit the tastes of its
customers, thereby bringing out the Wow effect (the feel good factor). It’s
strongly believes in the strategy of ‘Think local and act regional’. Thus, time and
again Domino’s has been innovating toppings suitable to the taste buds of the
local populace and these have been very well accepted by the Indian market.

Wibliography
https://www.marketing91.com/swot-analysis-of-dominos/
https://www.academia.edu/17315847/Final_copy_dominos_pizza_case
https://www.posist.com/restaurant-times/features/dominos-india-sinking-ship-
gasping-breath.html
https://www.businessmanagementideas.com/case-studies/case-studies-on-retail-
sectors-top-3-case-studies-india/15751
www.annualreports.com › Cli…PDF 2018 Domino’s Annual Report – Annual
Reports
https://en.m.wikipedia.org/wiki/Domino%27s_Pizza

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