Submitted by: Submitted by seungjihah
Views: 39
Words: 671
Pages: 3
Category: Business and Industry
Date Submitted: 03/18/2015 01:36 PM
Competition
In the pizza delivery industry, the three dominant pizza franchises are Pizza Hut, Domino’s, Papa John’s, with the Little Caesars franchise coming close with being a major player in the industry. According to the NPD Group, about 32% of all pizza sales in 2009 came from these top four franchises (“Pizza Industry Analysis 2014”). Among these competitors, Pizza Hut is the toughest competitor of Domino’s for it has generated about 14% of the total sales in the said year, while the rest was shared among the other players of the four (“Pizza Industry Analysis 2014”). In addition, the competitors in the pizza industry are constantly innovating the traditional pizza concept, trying to keep their business consistent with the current trends. For example, ordering online and through text messaging is uncommon, a strategy adopted by these big players to target the youth that can only expand in the future. With the slow and steady recovery of the economy, sales in the industry has gone up rapidly over the past couple years in the midst of the industry’s severe competition for current market share through menu-revamps (“Pizza Occasions Grow”, 2011).
More specifically, Domino’s pizza has earned $3.6 billion in 2011, and is currently second only to Pizza Hut with $5.7 billion in the U.S. (Wong). Both Domino’s and Pizza Hut have seen a rapid sales increase with their price value strategies: Pizza Hut offers its pizzas for $8, $10, or $12, attracting many value cost customers (Ziobro), while we, Domino’s, offer our menus at discount prices through various promotion methods (bundling two medium, two-topping pizzas, bundling a two out of a variety of menus for $7.99 each) (“Welcoe to Domino’s”). While in the heat of the competition, Domino’s is currently seeing a rise in its sales with the broadening of its menus beyond pizza and its adoption of a new pizza dough recipe (Arbor). It is true that the customers’ perception of Domino’s employee services and satisfaction...