What do you think Domino\'s does from an organizational perspective to make sure

Question

What do you think Domino's does from an organizational perspective to make sure that it accommodates local differences in consumer tastes and preferences? Do you think it is wise for dominos to stick to its traditional "home delivery" business model, even when this is not the norm in a country, and when its international rivals have changed their format? What lessons can we draw from the Draw from the domino’s case study that might be useful for other international business selling consumer goods?

CLOSING CASE Domino's Worldwide Domino's made its name by pioneering home delivery service of pizza in the United States. The company was founded in 1960 in Ypsilanti, Michigan, by Tom Monaghan and his brother, Jim. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. On May 12, 1983, Domino's opened its first store internationally-in Winnipeg, Canada. And, in 2012, Domino's Pizza removed the word "Pizza from the logo to emphasize its non-pizza products. Its current menu features a variety of Italian American entrées, side dishes, and desserts In recent years, the growth for Domino's has been overseas. With the U.S. fast-food market saturated and consumer demand weak, Domino's has been looking to international markets for growth opportunities. Today, almost all new store openings are outside the United States. As of 2013, Domino's had 10,566 stores with 4,900 in the United States, 750 in the United Kingdom, 650 in India, and the remaining spread out in 70 countries. Its plans call for 4 to 6 percent growth in stores per year for the next few years (some 500 new stores annually, with the majority in foreign markets). Given this expansion and clear international growth strategy, perhaps even more amazing is the 76 straight quarters of same-store sales growth in Domino's international stores As Domino's expands its international businesses, there are some things that the company has kept the same as in the United States, and there are some things that are very different. What is the same is the basic business model of home delivery. This sets it apart from many of its rivals, which changed their basic offering when they entered foreign markets. For example, when Yum! Brands Inc. introduced Pizza Hut into China, it radically altered the format, establishing Pizza Hut Casual Dining, a chain that offers a vast selection of American fare-including ribs, spaghetti, and steak-in a full-service setting Pizza Hut adopted this format because table service was what the locals were used to, but Domino's isn't interested. "We go in there with a tried-and-true business model of delivery and carry-out pizza that we deploy around the world," states Richard Allison, Domino's executive vice president-international. "In emerging markets, weve got more tables than you would find in the U.S., but we have no plans to lean toward a casual dining model where the server comes out and takes an order." This general strategy is backed up by the CEO of Domino's, J. Patrick Doyle, who said that "The joy of pizza is that bread, sauce, and cheese works fundamentally everywhere, except maybe China, where dairy wasn't a big part of their diet until lately." He continued, "it's easy to just change toppings market to market... in Asia, it's seafood and fish... it's curry in India.. but half the toppings are standard offerings around the world." Only eight restaurant chains worldwide have more than 10,000 outlets and Domino's is one of them (Domino's opened its 10,000th store as a franchise-owned outlet in Istanbul Turkey, in 2012). "Local knowledge and ownership are critical to our success overseas," Doyle said Bottom line, Domino's is the overall pizza-sales leader in the global marketplace and has established operations with some 5,700 store units worldwide. At this time, Domino's is also making a run for the top pizza spot in the United States, which now is held by Pizza Hut (with Papa John's at #3). This entrepreneurial leadership is best captured by Ronnie Asmar, director of new store development for STA Management in Southfield, Michigan, which owns 33 Domino's outlets; he says, "We come from an entrepreneurial family in the hospitality industry, and Domino's has been an awesome partner." And, Domino's appear to lead the market in other ways as well. Domino's appear to have captured integrated, and found an edge in the social media world we live in now better than its competition. For example, Mitch Speiser, a securities analyst for Buckingham Research, in New York said, "Domino's

Explanation / Answer

In order to accommodate differences in consumer taste and preferences dominos tend to modify the flavours according to local culture. This strategy would help to attract the local consumers towards the product.
Yes it is wise for the Dominos to stick to traditional home delivery business model, because this strategy is what differentiates the brand among its competitors. It is also very convenient for the customers who cannot travel through traffic and congestion in the City to the service resturants of pizza. The lessons that can be used by the international business selling consumer goods are trying to accommodate cultural values into the product, create a service that differentiate itself from its competitors.

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