Domino’s Pizza Firm’s Strengths and Weaknesses

Subject: Company Analysis
Pages: 2
Words: 640
Reading time:
3 min
Study level: Bachelor

According to its main webpage, Domino’s pizza is an American multinational pizza company that started franchising in 1967. Presently, the company boasts of being the largest pizza company globally, with over 200 branches spread out worldwide. Upon a close look at its ‘Investors’ tab, the venture places little direct emphasis on its accounting, shareholder, or economic perspective while discussing its competitive advantages. Furthermore, a review of various SWOT analyses conducted by different professionals does not seem to rely on its shareholders, accounting, and economics as a source of strength. Some references go as far as highlighting the company’s current indebtedness as a severe weakness.

In only 3 hours we’ll deliver a custom Domino’s Pizza Firm’s Strengths and Weaknesses essay written 100% from scratch Get help

Despite the lack of a clear position on its accounting, economic, and shareholder pedigrees, one can easily also argue that some of the competitive advantages highlighted in the webpage resulted from Domino’s accounting, shareholder, and economic impact. As per the website, one of its most vital assets is its innovativeness. The entity prides itself as very well placed in technological and product innovation. For instance, the company reckons that technological innovations enabled it to generate over 70% of its total sales from online platforms in 2020 during the COVID-19 pandemic (Page, 2021). The venture launched voice-ordering applications (a first in the industry) and enhanced ordering platforms that enabled ordering in as few as half a minute. Moreover, the product innovation generates new recipes and flavors in the market that massively boost sales and place the company ahead of rivals.

In a sense, one would attribute the high levels of innovativeness to the input of specific shareholders and management teams, even though the pages do not directly indicate that it is the case. The company has branches in over 60 nations and employs approximately 200,000 workers globally. The diverse pool of employees enables innovation as many cultures propose different recipes as per their local cuisines, promoting innovation (Mak, 2020). Hence, innovativeness could easily result from deliberate efforts by the shareholders and managers to have diversity in the workforce.

Another strength of the company is its rampant stewardship campaigns aimed at responsible sourcing, ensuring environmental sustainability, providing equal opportunity, and giving back to local communities. The company seeks to reduce its ecological footprint, recycle its pizza boxes, and plant trees, among other CSR initiatives in its stewardship programs (Page, 2021). The stories section highlights several instances of commitment to the community, impact in healthcare, and other critical foundations that endear the brand. Moreover, Domino’s Pizza has a robust internal dough supply chain and manufacturing system that significantly reduces operational costs and realizes growth even during hard times like a pandemic.

Domino’s unmatched consumer experiences, innovative ordering technologies, and unique products continue to create value for its shareholders. Even though these strengths could result from finances and shareholder decisions, there is little data on the website to confirm the notion. There is minimal mention about the company’s financial might and shareholders’ ability even in the latest 2019 annual report. The document emphasizes the company’s innovation that creates its unique products, ability to retain the best talent, and community involvement programs.

Even though the company remains listed in the NYSE, a review of the weaknesses indicates some revenue loss in the past years. Surveys suggest that the losses are due to the increase in health-minded consumers who desire to move away from Domino’s fat-laden and calorie-filled products. Mak (2020) cites that there are also complaints of the venture having more delivery sites than eating places. The phenomenon is a source of concern for clients who wish to sit and enjoy their meals in areas like malls. The lack of eateries worldwide could indicate a financial and accounting limitation, which may be why the entity does little to focus on the role of accounting, shareholder, and economic issues in its competitiveness. Much emphasis goes to innovation, diversification, and profitable CSR mechanisms.

References

Mak, J. (2020). Fast Casual Domino’s Pizza Shows Rising Relative Strength. Investors Business Daily, N.PAG.

Academic experts
available
We will write a custom Company Analysis essay specifically for you for only $16.00 $11/page Learn more

Page, J. (2021). Biz.dominos. Web.