This paper is the analysis of the three metrics, SPACE, GRAND, and Qualitative Strategic Planning Matrix, and their relevance for Domino’s Pizza’s strategic planning. Domino’s Pizza is a successful multinational business that operates restaurants and deliveries (“About us,” n.d.). The first matrix is SPACE, which describes the strategy, position, action, and evaluation of Domino’s Pizza. Within this matrix, the Y-axis represents the financial stability of the business, while the X-axis is a representation of the stability of the environment in which the business operates (“Around the world,” n.d.). The left part of this graph represents the competitive advantage. The right portion of this figure is dedicated to the industry’s attractiveness. Hence, the relevance of this matrix is its representation of the company’s position when compared to the competitors, which allows focusing on the areas where an improvement can be made.
Out of the three competitors—Domino’s, Papa John’s, and Pizza Hut, Domino’s has the best position in the market. Its strategic position is at 3.8 on the X-axis and 3.2 on the Y-axis. It means that the company has considerably high environmental stability, which means that it is relatively unaffected by the fluctuations in the market. Environmental stability also has subfactors that can positively influence the business’s strategic position, including technology, economy, stock, elasticity, and others.
Based on the X-axis, one can conclude that Dominos’s current industry is highly attractive. This factor also means that this business has profit and growth potential. However, there are some critical issues with Domino’s competitive advantage. This is because the X-axis’ left side shows the company’s differentiation in the current market and its leverage compared to other businesses. Since Domino’s is located at the far right of the X-axis, its competitiveness is lesser when compared to others, and Pizza Hut, in this case, is the most competitive business. This aspect can be addressed to promote the business’s growth and development, for example, by creating products that would differentiate Domino’s from their competitors. Similar trends are shown in the GRAND matrix, which allows one to compare the results of the two matrixes and find the area where Domino’s can improve. In this case, it is the company’s potential for growth and development.
Another source of information for enhancing the effectiveness of Domino’s operations in the market is the GRAND matrix and its importance for strategic planning is conditional upon the need to ensure the competitive advantage it addresses. This tool describes the company’s current position, providing insight into the possible issues that might adversely affect its attractiveness compared to rivals. As follows from its examination, the present situation does not imply any significant challenges, whereas Domino’s innovations and flexibility can satisfy varying demands (“Innovations,” n.d.). Meanwhile, the problems stem from the inefficient domestic supply chain, determining the slow market growth. Even though, as per the GRAND matrix, Domino’s franchise business is generally profitable, these risks should be addressed promptly. Next, the Qualitative Strategic Planning Matrix allows evaluation of the steps that Domino’s has made and their impact on the revenue, which can also be applied to the potential growth strategies. Hence, using the previous matrixes, one can choose the strategic steps for Domino’s and evaluate their quantitative impact using this matrix.
Possible strategies to capitalize and add value to these organizations include focusing on growth, for example, opening new Domino’s Pizza restaurants, expanding the delivery of products, and developing new types of pizza or other foods. In summary, this paper is an analysis of the three metrics-SPACE, GRAND, and Qualitative Strategic Planning Matrix. These metrics have the utmost importance for the businesses’ growth and strategic development because they show the strengths and weaknesses of the company and allow comparing these to the competitors.
References
About us. (n.d.). Domino’s. Web.
Around the world. (n.d.). Domino’s. Web.
Innovations. (n.d.). Domino’s. Web.