Domino's Pizza - Strategies to Tackle Global Economic Slowdown

 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR334 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Environment
Case Length : 17 Pages
Period : 2007-09
Pub Date : 2009
Teaching Note : Not Available
Organization : Domino's Pizza Inc.
Industry : Food and Beverages
Countries : US

Abstract:

Domino's Pizza is one of the world's biggest pizza chains with 8,773 stores across 60 countries employing approximately 170,000 people across the globe as of December 2008. In spite of the global financial meltdown in 2008, Domino's stood out as one such company that reported a strong growth in its international retail segment in the fiscal 2008. Analysts attributed the reasons for the growth of the company to its Master Franchise model of operations that allowed the company to diversify and minimize its risks in international markets while earning higher returns.

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The case discusses in detail the growth strategies adopted by some of the master franchises of Domino's - Domino's Pizza Group Limited (DPG) in the UK and Ireland, Domino's Pizza Enterprises (DPE) in Australia and New Zealand, and Domino's Pizza India Limited (DPIL) in India, Sri Lanka and Bangladesh, during the global economic slowdown in 2008.

Issues:


Analyze the strategies adopted by Domino's to boost revenues in the light of global economic slowdown.

Understand the master franchise model of Domino's and its advantages.

Examine the important factors involved in achieving growth during a downturn.

Understand the reasons for Domino's dismal performance in the US market.

Contents:

  Page No.
Introduction 1
Background Note 2
Domino's Master Franchise Model 4
Domino's US - Experiencing the Downturn 9
Future Outlook 10
Exhibits 12

Keywords:

Domino's Pizza, Recession Resistant, Franchise-only Business Model, Recessionary Environment, US Fast Food Industry, Global Economic Slowdown, Downturn, International sales, Master Franchise Model, Franchise Format, Domino's Pizza Group, Domino's Pizza Enterprises Limited, Domino's Pizza India Limited, Promotional Campaigns, Pizza Mania Campaign, 30 minutes Promise, Variable Funding Notes, The Big Taste Bailout, Secretary of Taste, American Legends, Same-store Sales

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