DOMINOS OPERATION STRATEGYDOMINOS OPERATION STRATEGY

Ninad Nigam

Domino’s pizza is a well-known pizza brand Over the last 55 years dominos serving pizzas and other fast

food items to their customer success fully. More than 11000 corporate and franchise restaurant stores in

all over 70 countries. In US it is 2nd largest pizza selling brand So what makes dominos so successful in fast food business.

The answer is its excellent customer service, frequent products introduction as per customer’s tastes ,its 30 min pizza delivery challenge, comfortable stores setup ,trained staff ,cooks, sound Cooking equipment, relationship with customers. Unique recipes, & sauces, target customers include kids to adults. There are lot more things where dominos doing well.

ABSTRACTABSTRACT

But how they perform excellent in all of this area very well?

What is the core strength of their business? What are the essential factors of their

success? How they compete in a highly competitive

fast food market.

All the answer lies in their operation strategy They have excellent operation strategy.

““Exceptional franchisees and team Exceptional franchisees and team members on a mission to be the members on a mission to be the best pizza delivery company in the best pizza delivery company in the world.”world.”

1.1. People firstPeople first2.2. Excelling to make base of loyal Excelling to make base of loyal

customers.customers.3.3. Getting every day excellenceGetting every day excellence

Global Strategic Objectives Global Strategic Objectives Competitive growth Establishing fast and reliable delivery model Establishing network of company owned stores as well as master franchises stores. New innovation both terms of product quality and technology Focusing on local market penetration by stores networks and knowledge management.

DOMINOS BUSINESS MODELDOMINOS BUSINESS MODEL

STRATEGIC RECONCILIATION MODEL OR RESOURCE USAGE MODEL STRATEGIC RECONCILIATION MODEL OR RESOURCE USAGE MODEL Quality of product & services

 

 

 

 

Raw material quality Improved order taking quality

Hot pizza delivery

Enhanced customer services

Trained staffs provide speedy operation during peak hours

Speed &reliability of delivery of product

. Location & number of stores provide quick delivery of pizza  

Delivery driver routing system improves delivery efficiency

 

Flexibility of response to customers

  Easily accessible stores by customers

Accurate & facilitate order taking

 

Cost minimization in terms of operational cost, working capital, capital cost

1.Store location minimize delivery cost

2.Stores layout minimize stores operational expenses

For e.g.. At Raipur domino’s stores cover all four Direction and situated at malls and main road ways of city

Central location gives frequent home delivery order

Minimize administrative cost Sales data helps to minimize wastage of products.

  Capacity:

Location of stores

Size of store

Layout of store

Supply Network

Number of stores (company owned & franchise)

Order fulfillment and stock replenishment

Process Technology

Hot bag

Assembly line of pizza baking

Pulse point of sales

Pizza tracker apps, android apps for online orders through mobiles

Development and organization

Master franchises system

Supplier & employee relationships, product innovation

ORDER QUALIFIERS ,LOSERS & WINNERS ORDER QUALIFIERS ,LOSERS & WINNERS

DOMINOS CORE COMPETENCIESDOMINOS CORE COMPETENCIES

PRODUCT VALUE CHAIN PRODUCT VALUE CHAIN

OPERATIONS STRATEGY AT STORE LEVEL – IMPLICATIONSOPERATIONS STRATEGY AT STORE LEVEL – IMPLICATIONSDominos prime focus is on excellent quality service to its customers and its stores play a major role at that as they are the retailers for dominos catering directly to dominos. 1.Continuously thriving at improving stores efficiencies to reduce operating expenditure. 2.Strategically stores are located to improve services and on time delivery which results in profit maximization. 3.Stores are designed in such a way to improve production as well it lets its customers see how it’s done at store level , increasing visibility and from marketing point of view a masterstroke. 4.From the moment order are placed to the moment customer receives its delivery all the intermediate steps like preparation, cooking & packing are done proficiently to complete operational process.5.Dominos has efficiently adapted its operations in PULSE point-of-sales system which gives its stores comparative advantage as it well helps it to be cost effective by giving easy access to entire marketing & financial. 6.Attractive, focused as well as opportunity for its customers to choose the ingredients of their own PIZZA give its competitive advantage as well as flexibility to stores to cater to wide variety of customers in its region. At the same time it also helps in improving order. 7.Regular audit programs at stores helps in continually improving standards of store and improve its performance in catering to its customers.

DOMINOS PRODUCT SERVICE IN TERMS OF DOMINOS PRODUCT SERVICE IN TERMS OF 4VS4VS

High VolumeVolume

High Variety Variety

High Degree of visibilityvisibility

Huge VariationVariation in demand

DOMINOS PRODUCTION PROCESSDOMINOS PRODUCTION PROCESS

Dominos have batch processing for consistency as well as flexibility in its kitchen

Dominos calls it assembly line as “make line”

This processing helps in catering high volume at peak hours and maintain operational efficiency.

SUPPLY CHAIN MANAGEMENT.. SUPPLY CHAIN MANAGEMENT..

Following steps are followed by dominos

1.Make-to-Stock approach Though at times it leads to over stock

2.Lean production is supported by Inventory management & Just-in-Time (JIT).

3.Centralized sourcing for consistent quality and it also give dominos buying power over its suppliers.

QUALITY MANAGEMENTQUALITY MANAGEMENTFor quality management dominos follows the following

1.Tight agreements with suppliers

2.Food technologist are hired for high quality check to ensure the legality , safety & consistency

3.Regular food audit program to ensure quality of food.

4.Regular consumer feedbacks

5.Service delivery excellence in ensuring quality.

QUALITY MANAGEMENTQUALITY MANAGEMENTFor quality management dominos follows the following

1.Tight agreements with suppliers

2.Food technologist are hired for high quality check to ensure the legality , safety & consistency

3.Regular food audit program to ensure quality of food.

4.Regular consumer feedbacks

5.Service delivery excellence in ensuring quality.

INNOVATION AND IMPROVEMENTSINNOVATION AND IMPROVEMENTSDominos focus majorly on product innovation & process innovation to improve both quality and speed of its offerings.

CONCLUSION & RECOMMENDATIONS CONCLUSION & RECOMMENDATIONS They can look to move toward E-SCM.

E- SCM may be described as the integrated management approach for planning controlling the flow of materials from suppliers to end users using internet technologies

E- SCM refers to the complex network of relationship that organization maintains with trading partners to source, manufacture & deliver the products.

Quality of food taste should be more focused as one of its performance objective

By changing menu items like sandwiches and beverages dominos should be more cautious about their operation management .speed and reliability of delivery should not be diluted by adding items in menu

Setup of stores layout have generally targeted children’s and youth customers dominos should set the stores layout in order to attract adult customers.

Dominos strategy works because dominos continue scanning itself and focus more on building new competitive advantages without losing old competitive strategies.

CONCLUSION & RECOMMENDATIONS CONCLUSION & RECOMMENDATIONS

Cost is the one of the vital factor to be controlled in Dominos. As the staff should be trained more about cost optimization i.e. during day to day operational activities how they can reduce wastages and how they do faster activities in peak business hours.

Local pizza restaurant and shop are big threat to dominos and as well as other branded pizza chains .in order to be competitive dominos should focus more on price and convenience.

Dominos definitive competitive advantages over its competitors are its It capabilities that is more efficient by its competitors. In India tier 3 city dominos stores are not much IT capable as with digital India campaign dominos should align its IT strategies and increase the services in tier 3 cities stores.

Dominos opened B2B portal to strengthen its supply chain order system for its independent franchise stores in December 2014 at North America .it’s an excellent steps taken by Dominos. Dominos should implement this initiative for Indian retail customers also.

THANK YOUTHANK YOU

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

May 1, 2023 21