Domino’s Pizza Japan: Fortressing or Market Expansion Case Study Solution
Bargaining Power of Suppliers
Suppliers in the food industry have a higher pace of negotiating because there is a higher rivalry in the market caused by the presence of various providers. The negotiating advantage is for the most part a direct result of the differentiated expressions industry and the intense competition causes the dealing force of the providers to be high. This makes low edges in productivity and the business goes downwards in income age.
The Threat of Substitute Products
There is a high danger of substitutes for Dominos because of the high competitive-organizations. The nature of these organizations is standard and higher, which makes the danger of substitutes. This can bring productivity upward in light of the fact that each organization brings development and the best quality assistance, which grows the business. Also, the client goes towards that organization which gives the best taste and incredible quality in low prices.
2.SWOT ANALYSIS
Strengths
Quality, taste, client preference, and the organization is additionally having a huge size of making pizza which straightforwardly diminishes its expenses giving it the upside of economies of scale. Also, the current situation of the firm is very productive and the organization has been creating higher income for quite a long while.
Weaknesses
The disadvantage of the organization is having the inclination just on one item and dismissing others. Additionally, it has the solitary item for the exclusive class and market skimming which is just reasonable by certain individuals not for every person.
Opportunities
The new management brings advancements and new outlooks to the company, which
is a great opportunity for the firm to increase and expand its business. The expansion in the fast-food industry is a great opportunity for the Dominos to have a broader portfolio.
Threats
There is a lot of threat for DPJ in the industry regarding the different government policies and competitors. The fact that there is a lot of competition in the food industry makes the unfavorable environment for the DPJ and its expansion.
3.THEORIES APPLIED BY DPJ
Different theories explicit different organizational structures and practices. Here are sometheories which a DPJ manager fast food possesses;
Learning theory
Learning hypothesis characterizes the constant improvement and learning in the association which is done through representatives, preparing, improvement in help and quality, and furthermore by embracing new ways and extension in the business. The DPJ needs to build its business development in Japan by growing its endeavor in the biggest or the most jam-packed region of Japan. (Jones, 2013)
Scientific theory
The logical hypothesis which express the practices should be as per the principle standard activities and quality administrations. Dominos is leading its client congregation by providing higher quality assistance and services. Moreover, the guidelines are appropriately applied in the inexpensive food organization where fresh food is given to the clients.(Jones, 2013)
Bureaucracy theory
Bureaucracy theory implies the main features in the business asa high standard
Operations, formal structure, hierarchical process, and also the main competencies in the business.
DPJ applies the theory by behaving the competitive advantage in the market and also implementing the standard regulations in the company. (Jones, 2013)
4.ALTERNATIVES
There are two possible Alternatives for the expansion of DPJ Inc. that is;
Either to open DPJ in Hokkaido
Pros
- The largest area of Japan, Having highest population i.e. 5.4 million.
Cons
- Since Hokkaido has the largest population, so it has the highest competition in the market where the upward pressure of substitutes is greater which can decline the sales of the DPJ.
Or to open DPJ in Nagoya
Pros
- The most crowded city in Japan
Cons
- Lower population
- Lower population leads to lower market demand
5.RECOMMENDATIONS
The proposed solution for Domino’s Pizza Japan Inc.(DPJ) is that if it expands its outlet in Nagoya, which is the smallest yet crowded city and having less market competition so it will help DPJ to extend its market growth. As Nagoya is a crowded city having people of all classes so all the people can make DPJ a profitable organization by exploring the outlet frequently. As Dominos is known for its Brand name and quality consumption, so it will surely appeal to the people of Nagoya. On the other hand, Hokkaido having the largest population and greater market competition will become a barrier for DPJ to gain profits.
On the other hand, some other major factors will lead the organization to run effectively and make benefits i.e. The employees must be given pieces of training and workshops where they must be given awareness about the objectives and goals. The main focus must be emphasized on strategic management and leadership which can make the operations efficient and provide the best training to the employees regarding their morals, behavior, and also the goal orientation of the company.
6.KEY DECISION CRITERIA
The key decision criteria for the DPJ through it can increase its profitability, sales,
Improve employee morale and also its service. Effective strategic management plans lead towards greater operational efficiency, profitability, and market share. On the other hand, strategic leadership refers to the potential of a manager in setting up the vision for the whole organization and implementation by using different leadership styles. Strategic leadership also refers to the utilization of strategy for the employees’ management. Strategic leadership enables the manager to motivate the employees and influence them to bring the desired organizational change.
Not only this, the confident as well as optimistic attitude and behavior from an accessible
upper management of the organization could convey the corporate stability and sense of well-being, thereby increasing the morale of a firm. On the other hand, the accessible pool of some leaders and managers could encourage the atmosphere of distrust and fear and reduce the morale among ranks.
8.1 The Strategy Management
Vital administration is making the techniques of the firm to accomplish its long-term and transient objectives. The pioneers initially examine the objectives of the firm and afterwards plan the important systems as per them.
There are three phases of making strategies which includes formulating, implementing, and then evaluating. The best methodologies straightforwardly offer development to the association and backing to accomplish its objectives. (Shivakumar, 2017)................
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