CLOSING CASE Domino's Worldwide Domino's made its name by pioneering home delivery ser- vice of pizza in the United States. The company was founded in 1960 in Ypsilanti, Michigan, by Tom Monaghan and his brother, Jim. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. On May 12, 1983, Domino's opened its first store internationally-in Winnipeg, Canada. And, in 2012, Domino's Pizza removed the word "Puza" from the logo to emphasize its non-pizza products. Its current menu features a variety of Italian American entrées, side dishes, and desserts. In recent years, the growth for Domino's has been overseas. With the U.S. fast-food market saturated and consumer demand weak, Domino's has been looking to international markets for growth opportunities. Today, almost all new store openings are outside the United States. As of 2013, Domino's had 10.566 stores with 4,900 in the United States, 750 in the United Kingdom, 650 in India, and the remaining spread out in 70 countries. Its plans call for 4 to 6 percent growth in stores per year for the next few years (some 500 new stores annually, with the majority in foreign markets). Given this expan- sion and clear international growth strategy, perhaps even more amazing is the 76 straight quarters of same- store sales growth in Domino's international stores. As Domino's expands its international businesses, there are some things that the company has kept the same as in the United States, and there are some things that are very different. What is the same is the basic business model of home delivery. This sets it apart from many of its rivals, which changed their basic offering when they entered foreign markets. For example, when Yum! Brands Inc. introduced Pizza Hut into China, it radically altered the format, establishing Pizza Hut Casual Dining, a chain that offers a vast selection of American fare including ribs, spaghetti, and steak-in a full service setting. Pizza Hut adopted this format because table service was what - Part 6 International Business Punctions Is Things Be Out of India." Get More.www.ling ./2013036 Mo domingo dedi: D. Bo's Global Growth Poede Puxa Chain's Rating Success Forber, March 9, 2013. fabric that allows for a strong entrepreneurial mindset among employees and franchisees. The company cap tures the global marketplace effectively, either as a first- mover or as a strong follower. "For Domino's the development and eventual channelization of industries is important strategically," said Michael Lawton, chief fi- nancial officer (CFO) of Domino's. He continued: "It led the company to decide in some foreign markets that the best alternative was to let someone else introduce the pizza category with a sit down concept and then Domino's moved in and captured their part of the indus- try as delivery and carry-out developed." In other cases, Domino's led the market entry into foreign countries. These decision choices make for great global strategy. Domino's has certainly captured the taste" of the global marketplace! Case Discussion Questions 1. Do you think it is wise for Domino's to stick to its traditional "home delivery business model, even when that is not the norm in a country and when its international rivals have changed their format? 2. What do you think Domino's does from an orga- nizational perspective to make sure that it ac- commodates local differences in consumer tastes and preferences? 3. How does the marketing mix for Domino's in Japun differ from that in the United States? How does the marketing mix in India differ 4. What lessons can we draw from the Domino's case study that might be useful for other intera tional businesses selling consumer goods? Sources: A Guarro, Domino's Suickstolis Ways Abroad." The Wall Sre Journal, April 17, 2012, p B10, A. Beattie. "In Japan. Pas Recast as Meal for Special Occasions." Athert. April 2, 2012 p. 16: Anparto, Domino's Sees Bipper Slice Overseas." The Wall Sre Journal, February 29, 2012, p 7: R. Shah. "How Domino's Pizza
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