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International Business (Domino's Pizza) - Essay Example
1. The company chosen for this paper is Domino's Pizza as this is one of the world biggest companies of pizza production and delivery. The company was founded in the USA in 1960 by Tom Monaghan. …
The paper will discuss the methods of international expansion the company used to date and its appropriate development methods, Domino's Pizza methods using in different markets, as well as the possible combination of international expansion methods. The paper will also critically appraise the current strategy and give appropriate recommendations for further development.
2. The most appropriate Domino's Pizza development method, as well as the best method of international expansion is licensing and franchising: "We have developed a large, global, diversified and committed franchise network that is a critical component of our system-wide success and our leading position in pizza delivery. As of March 21, 2004, our franchise store network consisted of 6,878 stores, 63% of which were located in the contiguous United States" (7). These system has doubtless advantages namely for such global international company as Domino's Pizza. The franchise system allows minimizing such negative barriers of international expansion as language barrier, local governmental measures and the registration of trademark. The system also provides the adaptation of Domino’s Pizza rights and regulations to the cultural differentiations of various countries: “We also adapt our system to the local market to accommodate cultural differences in delivery vehicles, store design, signage, etc. Pizza toppings are the most common cultural adaptation. We have pickled ginger in India, squid in Japan and green peas in Brazil” (3). Domino’s Pizza quick service restaurants in different countries are not a wholly subsidiary of Domino Pizza Company (like McDonald’s in the UK). ...