ASM657: Food delivery to parks and beaches. Voice ordering with the help of a friendly AI-generated chatbot named “Dom: Innovative Thinking Strategy Case Study, UiTM, Malaysia

University Universiti Teknologi MARA (UiTM)
Subject ASM657: Innovative Thinking Strategy

Food delivery to parks and beaches. Voice ordering with the help of a friendly AI-generated chatbot named “Dom.” Award-winning advertising campaigns. These were a few of the innovations that transformed Domino’s Pizza, Inc. (“Domino’s) into the world’s leading pizza business. Headquartered in Ann Arbor, Michigan, Domino’s Pizza offered take-out and delivery pizza, selling 3 million pizzas a day via 17,200 stores in 90 countries.

Over the span of its 60-year history, Domino’s had experienced its share of ups and downs. In 2008, Domino’s share price had fallen below $3, and its pizza was the target of American late-night hosts’ wisecracks for being unpalatable and for a damaging viral prank video depicting employees tampering with its food. But using technology, marketing, and a focused execution strategy, Domino’s executive team was able to turn the company around.

In 2021, as the world struggled with the pandemic, Domino’s thrived. Pizza was, as one analyst suggested the “ultimate quarantine food: It travels well, can feed a whole family, and holds up as leftovers.” Following years of technology investments and a “fortressing” expansion strategy, which clustered locations to minimize delivery times/pick-up drives, Domino’s was uniquely positioned to take advantage of growing demand.

Domino’s pioneered a number of ways to safely get food to its customers including “contactless” delivery, where the pizza was left on a cardboard pedestal outside of customers’ homes, and contactless pick-up, with the food placed directly in the customer’s car. For the first nine months of 2020, Domino’s saw revenues increase by 12% and earnings increase by 25%. And in October 2020, Domino’s share price hit an all-time high of $433.78.

Despite strong 2020 results, the company still faced a host of challenges. The quick-service pizza market was mature and highly competitive. The rise of third-party delivery services had expanded food delivery options—making inroads into Domino’s top-line growth rates. How did Domino’s get from where it was in 2008 to its position as an industry leader today? What lessons could be learned from the company’s dramatic turnaround? And, in light of competitive industry dynamics, what could Domino’s do to sustain its success?

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