Analysis and evaluation of business model of Dominos Pizza
Clearly and succinctly define the terms ‘business model’ and ‘disruption’ based on a short literature review.
The paper is analyzing the review of literature on business model and disruption which is used in the modern day business operations. It is describing that how business model can be useful to implement in modern day business organizations for the smooth running of the businesses. It is also describing the influence of the application of smart connected products to the business model of Dominos Pizza which is selected as the organization in this study. It should also be focusing on the analysis of the business model framework and illustrate the findings of the study(Johnson, Christensen &Kagermann, 2008).It should also be analyzing the different business model perspectives which involve the business model as value proposition, business model as the set of capabilities and resources, the system of processes and the profit formula to the analysis. The paper is also reflecting on the analysis of the threats and opportunities caused due to the implementation of smart connected products in the existing business model for Dominos Pizza in this study. It should also be focusing on the impact of the existing business model on the overall performance of Dominos Pizza. The essay should be highlighting the effect of the existing business model on the future of business for Dominos Pizza.
According to Veit et al.(2014) business model is basically a tool by which the business operations of any business should be able to recognize as well the key internal capabilities and resources to be judged. This is a tool which is useful in analyzing the revenue and the profitability of any organization operating in the professional field of business. It will be determining the revenue of the business by which the organizations should be doing the operations in a roper way. The business model also depicts the competitive positioning of any organization and provides value to the logistics involved in any business. It is seen that in the modern day business the business model has been changed from time to time. There is no fixed business model to be working for a long period of time for any business to be able to operate in a proper way. Due to the rapid competition and the high involvement of technology there is disruption in the business model to be taken place. Dominos has also changed their business model for the generation of higher revenues and for adding value to the customers towards the greater sustainability of their business. On the other hand disruption is defined as the total displacement and destruction of anything. In the modern day business when technology is creating a huge impact on the development and sustainability of the business, there is high chance of total disruption of the business model.
Threats and opportunities of implementing smart connected products in Dominos Pizza’s existing business model
Dijkman et al. (2015) states that the business models are not so stable than they were developed in the past due to the effect of changing internal and the external environment to be taken place. The internal and the external environment have a great influence on the changes as well the disruption of the existing business model which is developed by the different organizations.
It is quite obvious that due to the rapid development of technology there is significant effect on the existing business model of Dominos Pizza. The smart connected products are the physical devices which is interfaced with the software technology or the devices in order to improve and change the complexion of the business model. The smart connected products are providing the opportunities to make the business model flexible and stable enough to improve on the sustainability of the business(Johnson, Christensen &Kagermann, 2008).The smart connected products provide the opportunity for the existing business model of Domino’s Pizza to become detect that how much value should be provided to the customers(Johnson, Christensen &Kagermann, 2008).This also provides the opportunities to make the business model much more advanced in competing with the competitors. The smart connected products should be able to handle huge amount of data which is embedded with the sensors used at the bill ordering system for Dominos Pizza so that they can detect the data usage patterns of the customersde (Jong & van Dijk, 2015).
The smart connected products also help in the initial forecasting of the business model of the company. The smart connected product also provides the opportunities in improving the effectiveness and efficiency of the internal as well the external operations for the company(Zott, Amit& Massa, 2011).The smart connected products applied in the existing business model of Domino’s Pizza also help in making the logistics operations of Domino’s Pizza to be streamlined and flexible as well.
The threats caused due to the application of smart connected products in the business model could be the overestimation of the internal capabilities.(Porter &Heppelmann, 2015).The demand for the new technologies, skills and the processes in the entire value chain has been enhanced. The threats caused due to the application of smart connected products in the existing business model of Dominos Pizza could be the huge investment in maintaining the security levels of the company(Veit et al., 2014).The smart connected products open major gateways to the corporate systems which might hamper the business model.
The Relationship between business model and smart connected products
The next could be the huge resources to be applied for the smart connected products to make it feasible. The smart connected products fail to analyze new competitive threats or the new business model which can reshape it and there are chances of degradation to be taken place.
In accordance with Osterwalder and Pigneur (2010) the business model canvas is the pictorial representation where the different operations and the strategies are laid in a comprehensive way by which the decision makers and the strategists could be able to analyze the elements properly (Joyce &Paquin, 2016).
It constitutes of nine blocks which includes the key partners, key activities, customer relationships, customer segments, key resources, value propositions, channels, cost structure and revenue streams. The business model canvas has been depicted in the form of block below.
The existing business model of Dominos Pizza certainly creates value proposition for the company as well for the customers in Australia. The existing business model has been useful in generating high revenue with the streamlining of the operations and proper financial stability to be given to Dominos Pizza adds value for the company (Clark,Osterwalder&Pigneur, 2012).This is applicable in improving the profitability of the company. With the innovation to be done at the business model adds value for the company to compete and operate easily within the fast food industry in Australia.
In the context of the customers, the business model adds value to them if the product or service provided to them is completely new one and the product or service could be able to resolve the issue for them. In the case for Dominos Pizza, they have been improving their service with the smart connected products to be installed adds convenience and reliability. The innovative recipes and high quality ingredients they are using to develop their food items creates value for the customers(Dudin et al., 2015). The use of technology in their operations also adds value for them. The development and the implementation of the CSR activities which involves the participation in various charities, providing free education to the children and funding to schools which does not have enough financial strength helps in enhancing the brand reputation of Dominos Pizza. The GPS tracker and the commitment of pizza delivery in 30 minutes creates value proposition for the customers.
They have the talented and trained professionals who are able to provide high quality services to the customers. They have huge number of stores which are located in central regions helps in timely and convenient delivery of pizza for the customers (Abraham, 2013).This enhances customer trust and loyalty towards the operations. Most of the stores are franchised and some they have owned (Hong & Fauvel, 2013). The inventory is very less for Dominos Pizza which helps in reducing down the overall cost of the company. This enhances their capabilities of expanding the services across the globe. They have the capability of delivering the pizzas online and free home delivery. They also have the pulse point of sale and assembly line. The Dominospizza also has the capability of finding the location easily where they want to deliver it and this is done through the implementation of the GPS tracker(Hong &Fauvel, 2013).
The Business Model Canvas
Conclusion
The significance of the findings to the business is that the business for Dominos has high growth and sustainability in the future. It can evolve as one of the largest and profitable fast food organizations having its greatest existence within the fast food industry. It has significance to the business model as well as Dominos Pizza will be changing its business model and making it innovative. The future of the business is very good and stable as they have the key resources and the internal capabilities of Dominos Pizza is very string. They have the talented and skilled staffs providing excellent quality customer services providing high customer satisfaction. This leads to bright and sustainable future of business to be taken place.
References
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