Dominos Pizza Enterprise Limited

Influence of general environment in Domino’s Pizza Enterprises Limited (DPE)

General environment refers to the factors, which may have an impact on the presentation and procedure of business (Gupta 2012). The primary aspects that do line up an organization’s general environment factors are technological, sociocultural and political which focuses on helping the firm to stay in shape and have a clear goal to work on (Grint and Woolgar 2013).

In order to understand the influence of general environment in Domino’s Pizza Enterprises Limited (DPE), here the technical aspect is taken into consideration. In an interview with CNBC, Dominos Pizza Enterprise Limited (DPE) CEO, Don Meij said that the company is planning to prolong its pizza’s love affair with technology. To do so, they have introduced GPS driver tracker and SMS ordering patterns, which is seen as the primary cause of company’s growth in recent time. The Australian market’s report of Dominos also supported this statement, as net profit in 2015 has significantly increased by 29%, which is AUD $82.4 million (www.dominos.com.au 2016).

Dominos have always focused on delivering pizzas faster, safer and on time for their consumers to enjoy. Their continuous endurance on this thinking has led to the discovery of Domino’s Robotic Unit (DRU) in 2016, world’s first independent delivery vehicle that chats with the consumer and accepts payments too (www.dominos.com.au 2016). This four-wheeled $30000 estimated robot is designed to steer and take itself on the sidewalk “at a safe speed” from the store to the consumer’s door, using sensors to shun difficulty. The robot has waterproof acrylic plastics to protect the food from weather elements.  Consumers will have a unique code to enter and receive their smoky hot pizzas along with other cold refreshments. DRU’s self-determining nature will reduce human errors like accidents and be getting lost on the road, thus making Dominos safer than ever before. This innovation has the power to reduce business cost though it needs more up-gradation to be at its best (Rothaermel2015).

Impact of specific environment on Domino’s Pizza Enterprises Limited (DPE)

Specific context of an organization deals with factors, which directly affects a company’s capability to execute plans to achieve a goal. These factors include customers, suppliers, and competitors. 

To understand the impact of one specific environment on Dominos Pizza Enterprises Limited (DPE), the focus is on the competitive factor. Domino’s Pizza Enterprises Limited (DPE) faces stiff competition from Pizza Hut and Eagle Boys in the Australian market. Dominos have been the market leader with 15 percent stakes in the sector and pocketed around $64 million in the last financial year. Brisbane based company; Eagle Boys sees itself in the second spot with 7.5% share because of some fresh ideas and strategies implemented in the recent past. They have followed the market leaders, Dominos and have re-worked on their menus, technological aspects, and deliverables. In the face of intense competition, the early phase of 2015 saw Dominos reduce its value range to $4.95, with Pizza Hut following the same soon, but Eagle Boys did stick it out at earlier fixed prices (Chib2012). These big players do fight it out on the grounds of technology and price, but without compromising on the quality front (David and David 2016). People these days look for healthier options, and small firms have focused on bringing in gourmet that defines the term ‘healthy'(Olszewski 2015). Large companies like Dominos do have their task cut out in defending their territory and then expand (Autio et al. 2014).

Reference:

Autio, E., Kenney, M., Mustar, P., Siegel, D. and Wright, M., 2014. Entrepreneurial innovation: The importance of context. Research Policy,43(7), pp.1097-1108.

Chib, S.S., 2012. Empirical study pertaining to the effect of price on customer satisfaction with respect to dominos and pizza hut. International Journal of Applied Services Marketing Perspectives, 1(2), p.131.

David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.

Dominos.com.au. (2016). DRU – Domino’s Robotic Unit – Autonomous Delivery Vehicle. [online] Available at: https://www.dominos.com.au/inside-dominos/technology/dru [Accessed 19 Aug. 2016].

Grint, K. and Woolgar, S., 2013. The machine at work: Technology, work and organization. John Wiley & Sons.

Gupta, V.K., 2012. Flexible strategic framework for managing forces of continuity and change in supply chain management of fast food (quick service restaurant) industry. International Journal of Business Continuity and Risk Management, 3(2), pp.148-166.

Olszewski, A.P., 2015. International Marketing Strategies of US Fast Food Franchises. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual Conference (pp. 123-127). Springer International Publishing.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.

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