+ 44 20 8144 3706Introduction:
This report investigates Domino’s outlet located on T22 259 George St (Cnr Of Jamison & Lang Sts), SYDNEY CBD NSW 200. Outlet offers wide variety of pizza, dessert and drinks to customers. The main aim of the report is to propose varied strategies that can be followed in the business to improve profitability and performance. Strategies are prepared based on inputs received by gathering information from Domino’s retail outlet located at the above given address. Data is collected by taking interview of individuals working at Domino’s. On collection of data it is identified that total 8 employees worked on outlet, 1 is manager and 1 is cashier and others are in labor. Employing state that firm currently following competitor based pricing strategy. $1200 amount of rent is charged by the property owner. In order to promote a product, advertisement is given on newspaper and varied offers are displayed on screen within premises. High income individuals currently are major target customers. Section 2 will propose cost saving strategies that firm can follow in its business. Section 3 proposes competitive strategies that firm can follow in its business to get an edge over rivals. Section 4 proposes pricing, non pricing and growth strategies that can be adopted by the firm. In end conclusion section is prepared.
Cost saving proposal:
Domino’s outlet is located at T22 259 George St (Cnr Of Jamison & Lang Sts), SYDNEY CBD, NSW 2000 which is highly expensive area and due to this reason the rent cost is high there. Raw material cost is also high because firm purchase ingredients from multiple nations and these are available there at reasonable price. Higher shipping cost is another reason behind the higher procurement cost. The outlet has total 8 employees in its premise due to which HR cost is also high. Cost saving proposal is given below.
Reducing fixed cost:
• Renegotiate rent contract: Rent is the major element of the fixed costs that Domino’s bear in its business. Usually, it happened that property owner’s increase rent amount in one or two years of the time period. Due to this reason rent cost also elevate in its business. Considering low economic growth of the nation and less employment opportunities property owner increase rent by higher amount and due to this reason fixed cost increase in the business. In order to reduce fixed cost in upcoming time period firm must renegotiate contract with property owners and must make them agree on condition that rent amount will be increased in every seven years of gap. This will help firm to control fixed cost in its business to great extend. In implementing this strategy major challenge will be that property owner may deny from accepting new terms and conditions. In such kind of condition outlet manager will need to persuade property owner. Already Domino’s is paying higher rent for property then its rivals and by considering this point pressure can be build on the property owner and he may made agree on no elevating rent amount for seven years.
Conclusion:
On the basis of the above discussion, it is concluded that there are a number of strategies that Domino’s must follow in its business. First, it must focus on cost control and under this must improve its supply chain and identify individuals who can offer raw items at cheaper price. Transportation cost must also be low from that supplier to company’s warehouse. Moreover, firms must renegotiate contract with the property owner and try to increase time after which rent amount is increased by owner. Workforce shuffling must be done to fill vacant positions or fulfill resource requirement. By doing so HR cost can be reduced in the business. The focus must be on product and service differentiation and under this product line must be innovate according to the needs of people. As part of service differentiation by identifying taste of the customer’s relevant item must be suggested to them.
In order to grow the business rapidly firm must increase its chain network, offer new products to the customers and follow value based pricing strategy and promote products through Facebook. Domino’s can also look for other strategies and it can do so because it has sufficient resources in its business.
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