Domino's India Logistics Management
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : OPER005
Case Length : 10 Pages
Period : 1999 - 2003
Organization : Domino's
Pub Date : 2003
Teaching Note : Available
Countries : India
Industry : Food, Beverage and Tobacco
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Please note:
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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Background Note
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In the late 1950s, Dominick De Varti (Varti) owned a small pizza store named
DomiNick's Pizza on the Eastern Michigan University campus in Ypsilanti,
Michigan. In 1960, two brothers who were students of the University of Michigan
– Thomas S. Monaghan (Thomas) and James S. Monaghan (James) – bought the store
for US$900. In 1961, James sold his share of business to Thomas.
The pizza business did well and by 1965, Thomas was able to open two more stores
in the town – Pizza King and Pizza from the Prop. Within a year, Varti opened a
pizza store in a neighborhood town with the same name, DomiNick's Pizza.
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Thomas decided to change the name of his first store, DomiNick's Pizza, and one
of his employees suggested the name Domino's Pizza (Domino's). The advantage
of this name Thomas felt was that it would be listed after DomiNick in the
directory.
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Domino's
philosophy rested on two principles – limited menu and delivering hot
and fresh pizzas within half-an-hour. In 1967, it opened the first
franchise store in Ypsilanti, and in 1968, a franchise store in
Burlington, Vermont. However, the company ran into problems when its
headquarters (the first store) and commissary were destroyed by fire. In
the early 1970s, the company faced problems again when it was sued by
Amstar, the parent company of Domino Sugar for trademark infringement.
Thomas started looking for a new name and came up with Red Domino's and
Pizza's Dispatch. However, there wasn't any need for it because Domino's
won the lawsuit in 1980. |
In 1982, Domino's Pizza established Domino's Pizza
International (DPI) that was made responsible for opening Domino's stores
internationally. The first store was opened in Winnipeg, Canada. Within a year,
DPI spread to more than 50 countries and in 1983, it inaugurated its 1000th
store (Refer Exhibit II for worldwide revenues). Around the same time, new pizza
chains like Pizza Hut and Little Caesar established themselves in the US.
Domino's Pizza faced intense competition because it had not changed its menu of
traditional hand-tossed pizza. The other pizza chains offered low-priced
breadsticks, salads and other fast food apart from pizzas...
Excerpts >>
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