A competitive profile matrix is a strategic analysis showing how a company compares with its competitors on various aspects that reveal the strengths and weaknesses of both the company in question and its competitors (Meadows, 2020). After undertaking a competitive profile matrix on my company, Domino’s Pizza Company, against its competitor, KFC, my competitive profile matrix shows superiority in all aspects put into the matrix, including success factors, weaknesses, opportunities, and threats to the existence and profitability of Domino’s Pizza Company.
Domino’s Pizza Company enjoys a market share accompanied by a consistent brand superiority. Its profitability is good and can be sustained over the foreseeable future. The book of accounts generated ratios shows a good financial position that can be improved after the undertaking of various important measures to deal with emerging threats (Neill, 2019). These threats include a lack of a proper source of raw materials, which is quite an alarming gesture as no company can operate whatsoever without production. The company is also suffering from local competition from its main rival in terms of market share and brand superiority.
The company has also had a trend of losing its highly trained personnel and hence its cutting edge in customer satisfaction. However, to mitigate this threat, it has resolved to engage professionals through outsourcing to enable them to recruit the best available talents in the labor market (Hale, 2020). The company has also resolved to invest heavily in the diversification of sources of raw materials. This is in order to avert any possible breakdown of the production process in the company due to a lack of or low-quality raw materials.
Steps to Improve the Company’s Competitive Advantage
The first way to improve the Dominos’ competitive advantage is to reduce the pizza production time during the days when pizzas are in demand. For example, on Tuesdays, the demand for pizza rises between 6 pm and 9 pm. This is due to the worldwide offers that are available to its consumers. Reducing the production time will increase the company’s sales by a whopping 15 percent every single month. The current delays are costing the company a lot of money.
The second way to improve the company’s competitive advantage is by making sure that they incorporate the required technology, which will ensure that they accurately and effectively deliver their pizzas to their customers. Some addresses are missed while delivering the pizza (Enkhbayar, 2018). Some delivery people also end up wasting lots of time during deliveries by making customers cancel their orders. A lot of customers are very difficult to return. With the introduction of this technology, the delivery people will be closely monitored to ensure that they achieve the required turnaround time.
The technology will also be used to effectively alert the kitchen staff to timely load their ovens with new pizzas when the time lapses. Since the staff is running on the manual system of checking the ovens, they end up losing a lot of time during changes. This introduction will be a good one to improve sales for the company. The quality of pizza will also be improved, thereby improving customer satisfaction.
Lastly, Domino’s Pizza Company should critically consider opening more stores around the world. This will help the company to improve its delivery time and accessibility for all carry-out customers. Since the company is primarily known for takeaways, having more stores across cities will give access to more customers, which translates to more sales and eventually higher revenue. These are the strategies being used by its competitors like KFC and Burger King.
In conclusion, the company should consider reducing the pizza production time during peak days and hours, specifically Tuesday evening. They should also consider tapping into technology for their deliveries by using GPS to track the delivery people, which will improve their turnaround time. They should also consider increasing the number of stores to make sure they are present across all major cities and towns, which improves their visibility. With these, Domino’s will be assured of having a competitive advantage in the industry.
Enkhbayar, A. (2018). Ford Motor Company’s Financial Analysis.
Hale, J. (2018). Sustainability as a Megatrend. The Morning Star. Web.
Meadows, C. J. (2020). KFC, Hungry Jack’s, and Domino’s Pizza Australia. In Innovation through Fusion (pp. 263-274). De Gruyter.
Neill, C. (2019). Components of a Food Business Plan.