NATIONAL ECONOMICS UNIVERSITY

GROUP ASSIGNMENT
COURSE: Strategic Management
Topic: Case study report on Domino’s Pizza strategic formulation process

Group 4

Members:

Pham Trang Linh 11205867

Truong Hoang Anh 11200421

Nguyen Duy Linh 11202175

Le Nguyen Minh Anh 11204318

Nguyen Quang Minh 11202562

Tran Tuan Dung 11200933

Nguyen Van Quyet 11203337

Nguyen Xuan Bach 11200495

Ha Noi – 04/2023
 TABLE OF CONTENTS
A. Case Abstract.................................................................................................................................1
B. Vision Statement (actual)...............................................................................................................1
C. Mission Statement (proposed).......................................................................................................1
D. External Audit................................................................................................................................2
Opportunities.....................................................................................................................................2
Threats................................................................................................................................................2
Competitive Profile Matrix...............................................................................................................3
EFE Matrix.........................................................................................................................................3
E. Internal Audit...................................................................................................................................5
Strengths.............................................................................................................................................5
Weaknesses.........................................................................................................................................5
Financial Ratio Analysis....................................................................................................................6
Net Worth Analysis (in millions)......................................................................................................7
IFE Matrix..........................................................................................................................................7
F. SWOT.........................................................................................................................................8
G. SPACE matrix..................................................................................................................................9
H. IE Matrix........................................................................................................................................10
I. GRAND Matrix............................................................................................................................11
J. BCG Matrix.....................................................................................................................................12
K. QSPM..............................................................................................................................................12
L. Recommendations..........................................................................................................................16
M. Epilogue...........................................................................................................................................17

2
 Domino’s Pizza, Inc. – 2012

A. Case Abstract
Domino’s is the second largest pizza restaurant in the world and operates in more than 85 markets. On
average, Domino’s sales are more than 1.5 pizzas each day globally. Tom and James brothers
purchase the “DomiNick’s” pizza stores and entered the pizza business in 1960. In 1965, Tom was the
only owner and renamed the store as “Domino’s Pizza”. The company has franchising system that has
200 stores in 1978. Today, Domino’s has more than 13,800 stores and 5,000 of them are at outside the
US.

Domino’s Pizza consists of four business segments that are:

● Domestic Company-Owned Stores
● Domestic Franchise
● Domestic Supply Chain
● International

The main competitors of the company are Pizza Hut, Papa John’s, Little Caesars, and local pizza
producers. In addition, there are many substitute products that compete with Domino’s Pizza. These
are McDonald’s, KFC and so forth.

B. Vision Statement (actual)

The company envisions becoming one of the leading names in the pizza delivery business and also
providing people with outstanding taste.

C. Mission Statement (proposed)

Exceptional Franchisees and team members (6) to be the best pizza (2) delivery (7) company in the
world. (3) Whoever wants (1) to taste our pizzas can reach us any time with the technology they have.
(4) In this way, we can grow more quickly (5) and fulfill our responsibilities toward our customers,
our employees (9) and our society. (8)

1. Customers
2. Products or services
3. Markets
4. Technology
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept

1
 8. Concern for public image
9. Concern for employees

D. External Audit

Opportunities
1. Domino’s is only serving approximately 50 percent of the international market they could possibly
be serving.
2. There is a steadily growing international appetite for American fast food, and an improving global
economy. Markets such as China, Russia, India, and Brazil are still relatively untapped.
3. Many customers are looking for healthier fast food options.
4. College campuses and shopping malls are often frequented by young people.
5. Over 16 percent of residents of the USA identify themselves as Hispanic.
6. Many customers in today’s climate are willing to tolerate a degree of inconvenience if they can get
a better deal.
7. Small margins in the restaurant business are the reason why so many mom-and-pops fail.
8. The current landscape in the Quick Service Restaurant (QSR) business is a bimodal population
distribution with a large population of bargain-minded customers seeking deals on cheap fast food
options, and another population of more affluent consumers targeting middle-to-higher end
restaurants.
9. Domestic stores voted to increase their advertising revenue contribution to 5.5 percent in 2011.

Threats
1. Governments potentially forcing all restaurants to label all nutrition information on the menu at the
point of sale.
2. Trademark and patent protection laws are not as sophisticated in developing countries.
3. YUM Brands (parent company of Pizza Hut) revenues are over 60 percent greater than Domino’s.
4. Little Caesars was listed as the fastest growing pizza chain in 2010, with revenues up 13.6 percent
over 2009, followed by Pizza Hut’s 8 percent increase and Domino’s 7.2 percent increase.
5. Many restaurants such as Wendy’s, Subway, and even Pizza Hut offer customers low calorie
options on the menu.
6. Currently, there are over 925,000 fast food service locations in the USA or one for about every 330
people.
7. Barriers to entry are relatively low for the restaurant industry, but rivalry (competitiveness) among
firms is exceptionally high.
8. In the QSR industry, the bargaining power of consumers is quite powerful, the availability of
restaurant options in most places are abundant, and consequently, there is intense price
competitiveness among rival firms.
9. Wild fluctuations in commodity prices, especially prices in dairy products since they cannot be
locked in for long periods of time, are particularly problematic for the industry.
10. Labor is the second greatest expense in the fast food industry.

2
Competitive Profile Matrix
Domino's Pizza Hut Pizza John's
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0,08 2 0,16 3 0,24 4 0,32
Market Penetration 0,10 3 0,30 4 0,4 1 0,10
Customer Service 0,05 3 0,10 3 0,15 1 0,05
Store Locations 0,09 3 0,27 4 0,36 2 0,18
R&D 0,07 3 0,21 4 0,28 2 0,14
Employee Dedication 0,04 2 0,08 4 0,16 1 0,04
Financial Profit 0,12 2 0,24 4 0,48 1 0,12
Customer Loyalty 0,08 1 0,08 2 0,16 3 0,24
Market Share 0,10 3 0,30 4 0,4 1 0,10
Product Quality 0,07 2 0,14 4 0,28 3 0,21
Top Management 0,12 1 0,12 4 0,48 2 0,24
Price Competitiveness 0,08 4 0,32 2 0,16 3 0,24
Totals 1 2,32 3,55 1,98

Domino’s score of 2.32 reveals a below-average company with respect to Pizza Hut and Papa John’s.
Over $1.5 billion in long-term debt severely impacts Domino’s stockholders’ equity and financial
profit.

EFE Matrix
Factors Weigths Rating Score
Opportunities
1. Domino's senior management estimates the company is only
serving approximately 50 percent of the international market 0,10 4,00 0,40
they could possibly be serving.
2. There also is a steadily growing international appetite for
American fast food, and an improving global economy.
0,08 3,00 0,24
Markets such as China, Russia, India, and Brazil are still
relatively untapped.
3. Many customers are looking for healthier fast food options 0,08 1,00 0,08
4. College campuses, shopping malls, and other high traffic
0,06 3,00 0,18
areas are more commonly frequented by young people.
5. According to the US Census in 2010, over 16 percent of
0,02 1,00 0,02
residents of the USA identify themselves as Hispanic.
6. While an inconvenience over delivery, many customers in 0,03 3,00 0,09
today's climate are willing to tolerate a degree of
inconvenience that they historically were not if they can get a

3
better deal.
7. The small margins in the restaurant business are the reason
0,02 3,00 0,06
why so many mom-and-pops fail.
8. The current landscape in the Quick Service Restaurant
(QSR) business is a bimodal population distribution with a
large population of bargain-minded customers seeking deals on 0,05 4,00 0,20
cheaper end fast food options, and another population of more
affluent consumers targeting middle to higher end restaurants.
9. Starting in 2009, domestic stores voted to increase their
advertising revenue contribution rate to 5 percent and 0,06 4,00 0,24
eventually to 55 percent in 2011

Threats Weigths Rating Score

1. Governments potentially forcing all restaurants to label all
0,03 2,00 0,06
nutrition information on the menu at the point of sale.
2. Trademark and patent protection laws are not as
0,02 2,00 0,04
sophisticated in developing countries.
3. YUM Brands (parent company of Pizza Hut) revenues are
0,10 3,00 0,3
over 60 percent greater than Domino's.
4. Little Caesars was listed as the fastest growing pizza chain
in 3 2010, with revenues up 13.6 percent over 2009, followed
0,08 3,00 0,24
by Pizza 0.08 Hut's 8 percent increase and Domino's 7.2
percent increase.
5. Many restaurants such as Wendy's, Subway, and even Pizza
0,06 1,00 0,06
Hut offer customers low calorie options on the menu
6. Currently, there are over 925,000 fast food service locations
0,03 2,00 0,06
in 0.03 2 the USA or one for about every 330 people.
7. Barriers to entry are relatively low for the restaurant
industry. but rivalry (competitiveness) among firms is 0,03 3,00 0,09
exceptionally high.
8.In the QSR industry, the bargaining power of consumers is
quite powerful, availability of restaurant options in most places
0,05 3,00 0,15
are abundant, and consequently there is intense price
competitiveness among rival firms
9. Wild fluctuations in commodity prices, especially prices in
dairy product since they cannot be locked in for long periods of 0,06 2,00 0,12
time, are particularly problematic for the industry.
10. Labor, is the second greatest expense in the fast food
0,04 3,00 0,12
industry
Total 1,00 2,75

4
 Domino’s received an above average EFE score of 2.75 which can be attributed largely to the
excellent job Domino’s has done with international expansion. Domino’s still lags behind
competitors by not offering a healthy line of menu items.

E. Internal Audit

Strengths
1. Domino’s reached $1 billion in USA online sales in 2012 from its website, IPhone and Android
apps alone, accounting for over 60% of all sales.
2. Domino’s operates stores in 70 different nations.
3. International stores grew 30% from 2009 to 2012 to total of 4,835 at year-end 2012.
4. Backward integrated supply chain provides over 99% of supplies for franchisee stores.
5. Domino’s enjoys large economies of scale and great brand recognition.
6. Domino’s is exclusively a delivery/take out business, reducing overhead by not offering dine-in
space.
7. PULSE touch screen ordering system allows for increased order accuracy and provides driving
directions to drivers.
8. Domino’s Pizza markets their pizzas as having gluten-free crust.
9. Domino’s recently introduced new Artisan pizzas, and new recipes (higher quality products) for
their crust, sauce, and cheeses.

Weaknesses
1. While many fast food restaurants have added healthy options, Domino’s offers little with respect to
healthy food options such as salads or fruit.
2. Domino’s does not produce a sustainability report or have a sustainability statement on their
website.
3. Domino’s reported over $1.3 billion in negative stockholders’ equity at yearend 2012.
4. Domino’s is a relatively large company to operate under a functional type structure.
5. One large slice of hand- tossed, pepperoni pizza contains 300 calories and 12 grams of fat, and
there are 8 slices in a pizza.
6. No dine-in option.
7. Domino’s suffered a quality image before the launch of the new Artisan pizzas, and there is some
belief there remains a residual quality problem.

Financial Ratio Analysis

Profit Margin Percent Domino’s Industry S&P 500

5
 Gross Margin 29.87 31.98 37.55

Pre-Tax Margin 10.79 17.46 16.89

Net Profit Margin 6.7 11.88 12.42

Liquidity Ratios

Debt/Equity Ratio NA 0.7 0.97

Current Ratio 1.3 0.7 1.2

Quick Ratio 1.2 0.6 0.8

Profitability Ratios

Return On Equity NA 36.7 20.88

Return On Assets 23.4 13.4 7.7

Return On Capital 42.2 16.3 10.2

Efficiency Ratios

Income/Employee 11,239 16,959 129,395

Revenue/Employee 167,844 138,523 1.05 Mil

Receivable Turnover 18.5 49.3 14.2

Inventory Turnover 38.1 93 13.5

Asset Turnover 3.5 1.1 0.8

Domino’s is a healthy company based on most of the financial ratios. However, $1.5 billion in long-
term debt weighs heavily.

Net Worth Analysis (in millions)

Domino's Company Worth Analysis

Stockholders' equity -$1,336
Net Income x 5 $560
( Share price/ EPS) x Net Income x 5 $3,237
Number Of share Outstanding x Share price $3,124
Method Average $1,196

6
Papa John' s Company Worth Analysis
Stockholders' equity $182
Net Income x 5 $308
( Share price/ EPS) x Net Income x 5 $1,504
Number Of share Outstanding x Share price $1,418
Method Average $853

Methods 3 and 4 are likely the best representation of company worth. Like Domino’s, Papa John’s is
also heavily leveraged with long-term debt.

IFE Matrix

Factors Weigths Rating Score

Strengths
1. Domino's reached $1 billion in USA online sales in 2012
from its website, Iphone and Android app alone. Accounting 0,11 4 0,44
for over 60 percent of all sales
2. Domino's operates stores, in 70 different nations 0,09 4 0,36
3. International stores grew 43 percent 0,08 4 0,32
4. Backward intergrated supply chain provides over 99 percent
0,09 4 0,36
of supplies for franchisee stores
5. Domono's enjoys large economies of scale and great brand
0,07 4 0,28
recognition
6. Domino's is exclusively a delivery/ take out business,
0,04 4 0,16
reducing overhead by not offering dine-in space
7. Pulse touch screen ordering system allows for increased
0,04 4 0,16
order accuracy and provides driving directions to drives
8. Domino's pizza markets their pizzas as having gluten free
0,02 3 0,06
crust
9. Domino's recently introduced new Artisan pizzas, and new
recipes (higher quality products) for their crust, sauce and 0,05 4 0,20
cheeses
Weaknesses Weigths Rating Score
1. While many fastfood restaurants have added healthy options,
Domino's offer littles in respect to healthy food options such as 0,06 1,00 0,06
salads or fruit
Domino's does not produce a sustainability report or have
0,02 1,00 0,02
sustainability statement on their website.
3. Domino's reported over $1.3 billion 0,15 1,00 0,15

7
 4. Domino's is a relatively large company to operate under a
0,05 2,00 0,10
functional type structure.
5. One large slice of hand tossed peperroni pizza contain 300
0,03 1,00 0,03
calories an 12 grams of fat, and there are 8 slices in pizza
6. No dine in option 0,02 1,00 0,02
7. Domino's siffered a quality image before the launch of the
new Artisan pizzas an their is some belief there remains a 0,08 2,00 0,16
residual quaility problem
TOTALS 1,00 2,88

With a score of 2.88, Domino’s is doing an above average job based on internal factors. One area of
improvement would be to develop a healthy line of menu items.

F. SWOT
SO Strategies

1. Add 500 new stores over the next 3 years in China, India, and Brazil (S2, S3, O1, O2).
2. Add 500 new stores over the next 3 years in traditional European and Middle Eastern Markets (S2,
S3, O1).
3. Increase advertising expenses from $40M to match Pizza Hut’s $75M over the next 3 years to
market the new Artisan pizzas and other new products (S9, O9).
4. Offer 15 percent off all takeout orders (S5, S6, O6, O8).

WO Strategies

1. Create and market a new Artisan salad (W1, W5, O3).

2. Add 500 new stores over the next 3 years in traditional European and Middle Eastern Markets (W3,
O1).
3. Open 10 restaurants with a dining area as a pilot study near college campuses (W6, O4).
4. Restructure by division to further capitalize on any differences in consumption preferences in
international markets (W4, O1, O2).

ST Strategies

1. Hire a market research firm to determine the value in offering discounts or other marketing
strategies to combat new competitors in select markets (S1, S5, T3, T4, T5, T6, T7, T8).
2. Market to consumers more readily the healthier aspects of Domino’s Pizza (S8, T1).

WT Strategies

1. Create and market a new Artisan salad and pizza with lower-fat cheese (W1, W5, T1, T5).
2. Offer complimentary pizza at events around the world as a means of introducing customers to the
new Artisan pizza recipe (W7, T3, T4, T5).

8
G. SPACE matrix

Domino’s is located in the Competitive Quadrant (lower right) based mostly on 1) $1.5 billion in
long-term debt, 2) intense competition within the fast food industry and 3) Offering products that are
generally not a healthy food choice. Domino’s should consider adding a line of salads to their menu
to help move up the Y-Axis on the Space Matrix

H. IE Matrix

9
 Business Segment Revenue Revenue Revenue
2012 2011 2010

Domestic Company Owned Stores $324 $336 $345

Domestic Franchise $195 $187 $173

Domestic Supply Chain $942 $928 $876

International $217 $201 $176

TOTAL $1,678 $1,652 $1,571

The most valuable segment of Domino is International divisions, its revenues as a percent total of
revenues increased to 12.0 percent in 2012, up from 11.2 percent in 2010. The second is Domestic
Supply Chain, which is integrated backwards and provides products to 99% of its domestic
franchisees, creating a sustainable revenue stream. Although the company-owned stores generate
more revenue than domestic or international franchises, they also contribute significantly to Domino's
long-term debt. Therefore, it would be beneficial for the company to seek out franchisees to operate
these stores as a viable strategy.

10
I. GRAND Matrix

Domino’s Pizza is unclearly rapid or slow market growth, but in international divisions, it's especially
rapid, and it’s lying somewhere between Quadrant II and III and its competitive position is weak. So
Domino's has better global reach and more locations than Papa John's, Pizza Inn, and Little Caesars,
but their significant debt is a worry. Despite this, Pizza Hut, owned by Yum Brands, still reigns as the
top pizza chain. One effective plan for Domino's management would be to focus on paying off their
debts.

11
J. BCG Matrix

BCG matrix clarifies Domino’s Pizza in 4 divisions in terms of its Relative market share position and
Industry sales Growth rate, which are:
● Domestic Company - Owned stores
● Domestic Franchise
● Domestic Supply Chain
● International
With Domestic Supply Chain and Domestic Company-Owned Stores located in Stars position it means
Domino’s Pizza has a market share in fast-growing industry by domestic supply chain and company
owned stores, it generates a huge cash.On the other hand, Domestic and International Franchise has a
low market share but operates in a high growth industry, but the cash return is not high. This shows
that Domino's Pizza has a significant market presence in a rapidly expanding industry. Between the 4
types of divisions, there is still a compensation for each other, so Domino should still continue to
promote this strategy.

K. QSPM

Product Market
Development Development

Strengths Weight AS TAS AS TAS

1 Domino's reached $1 billion in USA online 0,11 2 0,22 4 0,44

sales in 2012 from its website, Iphone and

12
 Android app alone. Accounting for over 60
percent of all sales

Domino’s operates stores in 70 different

2 0,09 2 0,18 3 0,27
nations.

International stores grew 30% from 2009 to

3 0,08 1 0,08 3 0,24
2012 to total 4,835 at year end 2012.

Backward integrated supply chain provides

4 0,09 2 0,18 3 0,27
over 99% of supplies for franchisee stores.

Domino’s enjoys large economies of scale

5 0,07 3 0,21 3 0,21
and great brand recognition.

Domino’s is exclusively a delivery/take out

6 business, reducing overhead by not offering 0,04 3 0,12 2 0,08
dine in space.

PULSE touch screen ordering system allows

7 for increased order accuracy and provides 0,04 2 0,08 3 0,12
driving directions to drivers

Domino’s Pizza markets their pizzas as

8 0,02 3 0,06 2 0,04
having gluten-free crust.

Domino’s recently introduced new Artisan

9 pizzas, and new recipes (higher quality 0,05 4 0,2 3 0,15
products) for their crust, sauce and cheeses

Weakness Weight AS TAS AS TAS

While many fast food restaurants have added

healthy options, Domino’s offers little with
1 0,06 3 0,24 4 0,24
respect to healthy food options such as salads
or fruit.

Domino’s does not produce a sustainability

2 report or have a sustainability statement on 0,02 2 0,02 3 0,06
their website.

Domino’s reported over $1.3 billion in

3 negative stockholders’ equity at yearend 0,15 1 0,15 3 0,45
2012.

Domino’s is a relatively large company to

4 0,05 2 0,1 3 0,15
operate under a functional type structure.

5 One large slice of hand- tossed, pepperoni 0,03 4 0,12 3 0,09

13
 pizza contains 300 calories and 12 grams of
fat, and there are 8 slices in a pizza.

6 No dine in option. 0,02 3 0,06 2 0,04

Domino’s suffered a quality image before the

launch of the new Artisan pizzas, and there is
7 0,08 3 0,24 3 0,24
some belief there remains a residual quality
problem.

Opportunities Weight AS TAS AS TAS

Domino's senior management estimates the

company is only serving approximately 50
1 0,1 1 0,1 1 0,1
percent of the international market they could
possibly be serving.

There also is a steadily growing international

appetite for American fast food, and an
2 improving global economy. Markets such as 0,08 2 0,16 2 0,16
China, Russia, India, and Brazil are still
relatively untapped.

Many customers are looking for healthier fast

3 0,08 4 0,32 4 0,32
food options

College campuses, shopping malls, and other

4 high traffic areas are more commonly 0,06 1 0,06 1 0,06
frequented by young people

According to the US Census in 2010, over 16

5 percent of residents of the USA identify 0,02 3 0,06 2 0,04
themselves as Hispanic.

While an inconvenience over delivery, many

customers in today's climate are willing to
6 tolerate a degree of inconvenience that they 0,03 3 0,09 3 0,09
historically were not if they can get a better
deal.

The small margins in the restaurant business

7 are the reason why so many mom-and-pops 0,02 4 0,08 2 0,04
fail.

8 The current landscape in the Quick Service 0,05 3 0,15 3 0,15

Restaurant (QSR) business is a bimodal
population distribution with a large
population of bargain-minded customers
seeking deals on cheaper end fast food

14
 options, and another population of more
affluent consumers targeting middle to higher
end restaurants.

Starting in 2009, domestic stores voted to

increase their advertising revenue
9 0,06 4 0,24 4 0,24
contribution rate to 5 percent and eventually
to 55 percent in 2011

Threats Weight AS TAS AS TAS

Governments potentially forcing all

1 restaurants to label all nutrition information 0,03 3 0,09 1 0,03
on the menu at the point of sale.

Trademark and patent protection laws are not

2 0,02 3 0,06 2 0,04
as sophisticated in developing countries.

YUM Brands (parent company of Pizza Hut)

3 revenues are over 60 percent greater than 0,1 2 0,2 4 0,4
Domino's.

Little Caesars was listed as the fastest

growing pizza chain in 3 2010, with revenues
4 up 13.6 percent over 2009, followed by Pizza 0,08 4 0,32 4 0,32
0.08 Hut's 8 percent increase and Domino's
7.2 percent increase.

Many restaurants such as Wendy's, Subway,

5 and even Pizza Hut offer customers low 0,06 1 0,06 2 0,12
calorie options on the menu

Currently, there are over 925,000 fast food

6 service locations in 0.03 2 the USA or one for 0,03 2 0,06 2 0,06
about every 330 people.

Barriers to entry are relatively low for the

restaurant industry. but rivalry
7 0,03 4 0,12 3 0,09
(competitiveness) among firms is
exceptionally high.

In the QSR industry, the bargaining power of

consumers is quite powerful, availability of
8 restaurant options in most places are 0,05 2 0,1 1 0,05
abundant, and consequently there is intense
price competitiveness among rival firms

9 Wild fluctuations in commodity prices, 0,06 2 0,12 3 0,18

especially prices in dairy product since they

15
 cannot be locked in for long periods of time,
are particularly problematic for the industry.

Labor, is the second greatest expense in the

10 0,04 2 0,08 1 0,04
fast food industry

TOTAL 4.73 5.62

L. Recommendations

1. Market Development
Domino’s is in the second position of its market in term of international and domestic area. The
company operates more than 50 countries. However, there is a great opportunity in Asia countries.
There are high population in those countries and people spent more money for fast food staff.
Expanding into those markets will be a good return in terms of financial and market share. Opening
new franchisees or company-owned store would be an effective strategy.
2. Product Development
Nowadays, the consumption habits of people are changed. They prefer healthier products in
consumption. Also, low calorie products are more demanded due to obesity. For these reasons,
creating new types of products will meet customer expectations and increase sales of the company,
especially in maturated markets. On the other hand, Domino’s focuses on pizza products. Producing
products that can be consumed with pizza will increase the variety and sales.
3. Market Penetration
Currently, Domino’s Pizza is the second biggest company in its market. Pizza Hut is the leader and
there are so many competitors in the market. The company's market share would increase if it entered
those markets. Because franchising business has high market growth and in that growth, Domino’s
Pizza can increase its market share. Providing promotion and reducing the cost would be an option
that Domino’s Pizza can be able to do.
4. Marketing Strategies
The marketing expenditure of the company is the half of Pizza Hut’s expenditure. To compete with
market leader, Domino’s Pizza should increase its marketing expenditure. For the developing
countries, “act local” marketing strategy should be implemented to seem as local company and reduce
the effect of domestic pizza producers. For the developed countries, Domino’s should focus on mobile
sector. Small online videos, coupons and reward systems are the options and less costly strategies that
Domino’s is able to apply.

M. Epilogue

As of first quarter March 2013, Domino’s continues to carry $1.5 billion in long-term debt on the
balance sheet resulting in over $1.3 billion in negative stockholders’ equity. Despite the continued

16
troubles with debt, one interesting strategic change is as of March 2013. Domino’s has changed its
principle strategy of delivery speed to taking extra time to produce a top-quality pizza. Down are the
advertisements of yesteryear, promising free pizzas if not at your door in 30 minutes, and in is a
nation-wide marketing campaign claiming Domino’s pizzas are made fresh from never frozen dough,
and it just takes a bit longer to make a better pizza. This campaign comes on the heels of Domino’s
starting their Artisan Pizzas and new recipes just a few years earlier. The new buzzword/slogan for
Domino’s newest marketing campaign is simply “Try our Handmade Pan Pizza.”

In addition to the new Handmade Pan Pizza, Domino’s is rolling out a new $5.99 value menu that
offers Penne Pastas, Stuffed Cheesy Breads, 8-piece chicken varieties, and Oven Baked Sandwiches.
All of these products are in addition to the $5.99 medium two topping pizza pick-up special Domino’s
has offered in recent years. With the new products (and change in pizza recipe), Domino’s is
claiming through advertisements that 80 percent of their menu items are new since 2008.

17