Product Differentiation In The Case Of Domino's Pizza

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A perfect generic strategy is one which can provide a company with a competitive advantage over other companies in the market and has the potential to help the company to sustain its level of growth in the market.
A company or a business organisation should always select a strategy after identifying its requirements and needs and analysing the existing trends in the market. Based on its needs and requirements, a company can choose from three major strategic options––cost leadership, differentiation and focus––in order to achieve a sustainable competitive advantage.

In case of Domino’s Pizza Inc., the strategy they have adopted is product differentiation and innovation in the core products and technology. Product differentiation is a strategy
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They leveraged this new medium in the year 1999 by launching online ordering service. Domino’s introduced its iPhone ordering app, Android and iPad apps and Windows Phone 7 app in 2010, 2011 and 2012, respectively. According to the statistics released by the company, the innovation in mobile and the online led to a remarkable boost in sales. They reached weekly sales figures of GBP 1 million via its online ordering service. By 2008, their total sales through the online network increased to GBP 55.9 million annually. Currently, in 2014, 70.9% of UK delivered sales are ordered online, up from 62.4% last year. Of those, 49.3% were taken through mobile devices.

Domino’s have always tried something new to improve their service to create a better experience and convenience for the consumer (Gabay et al, 2009). The success of Domino’s Pizza can be attributed to their ability to understand customer needs, setting market trends and keeping pace with the shifts in target consumer base, which are families with children, students and young
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Domino’s has managed to reduce the out of door time from 17 to 13 minutes in recent years and their average delivery times have decreased to only twenty three minutes.

There are many businesses that are successful because they focus on identifying a model that works for them and then concentrating on carrying it out extremely well. Domino’s is a market follower. Remaining sensitive to competitors and allowing competition to affect product pricing is a classic trait of a market follower (Kotler & Armstrong, 2008). It allows its competitors to grow the market for pizza

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