Dominos Pizza UK and IRL Plc (DPUKY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Dominos Pizza UK and IRL Plc (United States)
Based on various researches at Oak Spring University , Dominos Pizza UK and IRL Plc is operating in a macro-environment that has been destablized by – increasing energy prices, geopolitical disruptions, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Dominos Pizza UK and IRL Plc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Dominos Pizza UK and IRL Plc can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dominos Pizza UK and IRL Plc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dominos Pizza UK and IRL Plc operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Dominos Pizza UK and IRL Plc can be done for the following purposes –
1. Strategic planning of Dominos Pizza UK and IRL Plc
2. Improving business portfolio management of Dominos Pizza UK and IRL Plc
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dominos Pizza UK and IRL Plc
Strengths of Dominos Pizza UK and IRL Plc | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dominos Pizza UK and IRL Plc are -
Low bargaining power of suppliers
– Suppliers of Dominos Pizza UK and IRL Plc in the sector have low bargaining power. Dominos Pizza UK and IRL Plc has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dominos Pizza UK and IRL Plc to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Dominos Pizza UK and IRL Plc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dominos Pizza UK and IRL Plc has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Dominos Pizza UK and IRL Plc has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Dominos Pizza UK and IRL Plc has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Dominos Pizza UK and IRL Plc staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Dominos Pizza UK and IRL Plc is one of the most innovative firm in sector.
Superior customer experience
– The customer experience strategy of Dominos Pizza UK and IRL Plc in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Dominos Pizza UK and IRL Plc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dominos Pizza UK and IRL Plc has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Analytics focus
– Dominos Pizza UK and IRL Plc is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Dominos Pizza UK and IRL Plc are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Dominos Pizza UK and IRL Plc has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Strong track record of project management in the industry
– Dominos Pizza UK and IRL Plc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in
– Dominos Pizza UK and IRL Plc is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Dominos Pizza UK and IRL Plc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Dominos Pizza UK and IRL Plc | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dominos Pizza UK and IRL Plc are -
Compensation and incentives
– The revenue per employee of Dominos Pizza UK and IRL Plc is just above the industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the industry, Dominos Pizza UK and IRL Plc needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Dominos Pizza UK and IRL Plc is dominated by functional specialists. It is not different from other players in the industry, but Dominos Pizza UK and IRL Plc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dominos Pizza UK and IRL Plc to focus more on services in the industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Dominos Pizza UK and IRL Plc has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Dominos Pizza UK and IRL Plc lucrative customers.
Need for greater diversity
– Dominos Pizza UK and IRL Plc has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– From the outside it seems that Dominos Pizza UK and IRL Plc needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Dominos Pizza UK and IRL Plc can leverage the sales team experience to cultivate customer relationships as Dominos Pizza UK and IRL Plc is planning to shift buying processes online.
Lack of clear differentiation of Dominos Pizza UK and IRL Plc products
– To increase the profitability and margins on the products, Dominos Pizza UK and IRL Plc needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– From the 10K / annual statement of Dominos Pizza UK and IRL Plc, it seems that company is thinking out the frontier risks that can impact industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Dominos Pizza UK and IRL Plc is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ less understanding of Dominos Pizza UK and IRL Plc strategy
– From the outside it seems that the employees of Dominos Pizza UK and IRL Plc don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of United States, Dominos Pizza UK and IRL Plc needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Dominos Pizza UK and IRL Plc Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Dominos Pizza UK and IRL Plc are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dominos Pizza UK and IRL Plc is facing challenges because of the dominance of functional experts in the organization. Dominos Pizza UK and IRL Plc can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dominos Pizza UK and IRL Plc to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Dominos Pizza UK and IRL Plc to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Dominos Pizza UK and IRL Plc has opened avenues for new revenue streams for the organization in industry. This can help Dominos Pizza UK and IRL Plc to build a more holistic ecosystem for Dominos Pizza UK and IRL Plc products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Dominos Pizza UK and IRL Plc has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dominos Pizza UK and IRL Plc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Dominos Pizza UK and IRL Plc can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Dominos Pizza UK and IRL Plc can use the latest technology developments to improve its manufacturing and designing process in sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dominos Pizza UK and IRL Plc can use these opportunities to build new business models that can help the communities that Dominos Pizza UK and IRL Plc operates in. Secondly it can use opportunities from government spending in sector.
Developing new processes and practices
– Dominos Pizza UK and IRL Plc can develop new processes and procedures in industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Dominos Pizza UK and IRL Plc to increase its market reach. Dominos Pizza UK and IRL Plc will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– Dominos Pizza UK and IRL Plc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Dominos Pizza UK and IRL Plc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dominos Pizza UK and IRL Plc can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Dominos Pizza UK and IRL Plc can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Dominos Pizza UK and IRL Plc External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Dominos Pizza UK and IRL Plc are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Dominos Pizza UK and IRL Plc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Dominos Pizza UK and IRL Plc high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Dominos Pizza UK and IRL Plc
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Dominos Pizza UK and IRL Plc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dominos Pizza UK and IRL Plc can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Dominos Pizza UK and IRL Plc prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Dominos Pizza UK and IRL Plc may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Regulatory challenges
– Dominos Pizza UK and IRL Plc needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dominos Pizza UK and IRL Plc in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Dominos Pizza UK and IRL Plc demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Dominos Pizza UK and IRL Plc business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Dominos Pizza UK and IRL Plc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Dominos Pizza UK and IRL Plc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Dominos Pizza UK and IRL Plc needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Dominos Pizza UK and IRL Plc will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Dominos Pizza UK and IRL Plc Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Dominos Pizza UK and IRL Plc needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Dominos Pizza UK and IRL Plc is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Dominos Pizza UK and IRL Plc is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Dominos Pizza UK and IRL Plc to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Dominos Pizza UK and IRL Plc needs to make to build a sustainable competitive advantage.