Managment

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Category: Business and Industry

Date Submitted: 03/12/2016 09:02 AM

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Domino’s Pizza

The concept of speedy delivery for only 30 minutes has certainly transformed the life of Thomas Stephen Monaghan, the American founder of Domino's Pizza. Established in the year 1960, Domino's Pizza was operated by the Monaghan brothers, James and Tom however the former quit. The initial store was situated in Ypsilanti, Michigan where DomiNick's pizza store was built however the founder did not permit Tom to reuse its name, thus Domino's Pizza, Inc. was suggested by his employee.

Success Factors

The success of Domino's is attributed to its excellent customer service and superior tasting pizza. Hitt, Ireland & Hoskisson (1999) elaborated that the company "introduced its first delivery guarantee, promising delivery within a half hour of a half dollar off and also founded the College of Pizzarology to train potential franchises" (p. 29). The company is capable of providing quick delivery due to its limited menu. The company did not give customers a choice since the only menu comprised of one type of beverage and 11-topping pizza with two sizes yet Domino's was still patronized due to its fast delivery and quality food. This limited menu started because Monaghan had few staff due to insufficient capital and the workload is not complex since they only deliver one type of pizza.

Scalability and development of a business model are among the factors of success of Domino's Pizza. Vyge (2012) clarified that the founder established the pizza chain around a "highly scalable assembly-line process called makeline and a franchise business model that could penetrate new markets quickly; the company is piggybacking on the efforts of local entrepreneurs who want to build a pizza business fast" (p. 70).

Major Strengths

From the point of view of the management, among the major strength of Domino's Pizza is customer responsiveness. Hill & Jones (1998) explained that the owner had chosen to "stay close to the customer by eating Domino's pizza...