POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119 DIGITAL ENTERPRISE
POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2014 Group: ISO Truong Dinh Thanh Thu Valaphone Sisouvong Kounjairhtong Insiri >>APMG 8119: DIGITAL ENTERPRISE
Business Model Analysis >>APMG 8119: DIGITAL ENTERPRISE
Presentation outline 1. Business background 2. Revenue analysis 3. Cost analysis 4. Value creation >>APMG 8119: DIGITAL ENTERPRISE
Domino’s Pizza Business Model >>APMG 8119: DIGITAL ENTERPRISE
1. Business Background • Was owned by Domino’s Pizza Enterprises Ltd in 1960 with the purpose is “Fast free delivery” • In 2003, open more stores in New Zealand. • Becomes the second largest pizza chain in New Zealand in both network stores number and network sale • In 1996, Domino Pizza was launched the Domino website: http: //www. dominos. com/ which allows customers to book product online. >>APMG 8119: DIGITAL ENTERPRISE
Partnership • Domino Pizza has created good relationship with their suppliers which will - provide high quality ingredients: optimization motivation - Lower price: economic motivation Þ Reduce risk for product quality and price fluctuation • Domino Pizza use eco-efficient package and paper which are friendly with environment => achieves acquisition of particular resources and activity >>APMG 8119: DIGITAL ENTERPRISE
Customer Targeting • Pizza can be consumed by many people from different ages, genders, incomes and generations. ÞDomino Pizza aims to serve for the whole market. • Domino Pizza continues to improve their menus which are suitable for people from different religions => Domino can be easy to attract and serve different type of customers. >>APMG 8119: DIGITAL ENTERPRISE
Online Retail Activities Offered both online booking through Domino’s website and Mobile Apps: HTML 5 ordering system, i. Phone App, Android App, i. Pad App, Desktop Ordering Site and Facebook Ordering with clear interfaces which make it easier for customers to order anytime in anywhere >>APMG 8119: DIGITAL ENTERPRISE
Online Retail Activities • Domino Pizza entered into social network such as Facebook, You. Tube and reached over one million fans on Facebook • With the Facebook App, customers can rate their feedback => understand customer’s need to give better service >>APMG 8119: DIGITAL ENTERPRISE
2. Revenues analysis: Products selling - • • Price sensitivity rivals quality services + • • strong value-supply chain menu creation offer more menus goes to marketspace >>APMG 8119: DIGITAL ENTERPRISE
2. Revenues analysis: Stock shares – licensing - • rapid and unpredictable in the market • unaffordable licensing + • external investment • consistency operation under one license >>APMG 8119: DIGITAL ENTERPRISE
3. Cost analysis List 2013 ($’ 000) 2012 ($’ 000) Revenue 188, 631 169, 466 Other revenue 106, 259 96, 421 3, 564 3, 161 Food and paper expenses 85, 150 78, 679 Employee benefits expense 76, 260 65, 264 9, 331 8, 588 12, 792 10, 029 9, 103 7, 837 405 451 11, 430 11, 477 Store related expenses 7, 182 5, 887 Communication expenses 6, 351 6, 669 Other expenses 39, 685 35, 523 Profit before tax 40, 765 37, 664 12, 108 10, 708 Other gains and losses Plant and equipment cost Depreciation and amortization expense Occupancy expense Finance costs Marketing expenses >>APMG 8119: DIGITAL ENTERPRISE Income tax expense
3. Cost analysis: Food and paper expenses • raising price of paper • ingredients • no standard >>APMG 8119: DIGITAL ENTERPRISE + • strong value-supply chain reduce risk of price fluctuations • never in shortage
3. Cost analysis: Employee benefit • in some countries, laws are strict, labor cost is high -> burden to business >>APMG 8119: DIGITAL ENTERPRISE + • (+) in some countries, laws are not strict, minimum wage is low-> higher profit to business
3. Cost analysis: Resources structures Tangible Intangible >>APMG 8119: DIGITAL ENTERPRISE • • • physical stores plants equipments employees investment • brand loyalty • licensing
4. Value creation (Organization perspective) • Desktop online ordering • i. Phone & i. Pad application, Android application, HTML 5 ordering system, Facebook ordering page • New design stores • Chef’s Best menu Novelty Efficiency • Online order - save time & enhance productivity • IT outsource scalability & cost efficiency >>APMG 8119: DIGITAL ENTERPRISE Lock-in • vouchers & coupons • Cheaper everyday $4. 95 • e. Club Comple mentarities • Pizza customization • Chicken, breads, dessert, drinks
Value creation (Customer perspective) Brand recognition • 2 nd largest pizza chain in NZ • The largest franchisee in the world Convenience & Accessability • Ordering system in all platforms Customization • Customizing Pizza: crust, sauce, topping Risk reduction • Pizza tracker Price • Value pizza - $4. 95 • Coupons >>APMG 8119: DIGITAL ENTERPRISE
Value creation (Social perspective) Partners foundation Environmental friendly Local sponsorship >>APMG 8119: DIGITAL ENTERPRISE Doughraiser Fundraisers Natural Disaster Food Relief
Customer relationship Real-time feedback App Welltrained social media team >>APMG 8119: DIGITAL ENTERPRISE 24/7 social media availability
Thanks >>APMG 8119: DIGITAL ENTERPRISE
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References Domino's Pizza. (n. d-a). About Domino's. Retrieved from http: //www. dominospizza. co. nz/corporate/about-dominos Domino Pizza. (2013). People passion pizza. Retrieved from http: //investors. dominos. co. uk/system/files/uploads/financialdocs/dominos_ar 13. pdf Gemmell, R. M. , Boland, R. J. , & Kolb, D. A. (2011). The social-cognitive dynamics of entrepreneurial ideation. . Entrepreneurship Theory and Practice(September), 1 -21. doi: 10. 1111/j. 1540 -6520. 2011. 00486. x Hoffman, D. L. , & Novak, T. P. (1996). Marketing in hypermedia computer-mediated environments: Conceptual foundations. Journal of Marketing, 60(3), 50. King, L. (2011). Domino's Pizza delivery of IT to outsourcers is 'crucial to resilience'. Retrieved from http: //www. computerworld. co. nz/article/495879/domino_pizza_delivery_it_outsource rs_crucial_resilience/ Lee, S. M. , Olson, D. L. , & Trimi, S. (2012). Co-innovation: convergenomics, collaboration, and co-creation for organizational values. Management Decision, 50(5), 817 -831. doi: 10. 1108/00251741211227528 Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86 -92. >>APMG 8119: DIGITAL ENTERPRISE
References Microsoft. (2013). Domino’s Pizza. Retrieved from http: //www. microsoft. com/casestudies/Case_Study_Detail. aspx? Case. Study. ID=710000002307 Molenaar, C. (2012). E-Marketing: Applications of information technology and the internet within marketing. Great Britain: Routledge: Taylor & Francis Group. NZBusiness. (2014). Dominos shares social media tips. Retrieved from http: //nzbusiness. co. nz/news/dominos-shares -social-media-tips Pizza, D. s. (n. d-b). Community initiatives. Retrieved from http: //www. dominospizza. co. nz/corporate/community Rayport, J. F. , & Sviokla, J. J. (1994). Managing in the marketspace. Harvard Business Review, 72(6), 141 -150. Statistics New Zealand. (2013). Quick. Stats about New Zealand. Retrieved from http: //stats. govt. nz/Census/2006 Census. Home. Page/Quick. Stats/About. APlace/Snap. Shot. aspx? type=region&tab= Population. Dwellings&id=9999999 Stevens, G. , & Burley, J. (1997). 3000 raw ideas equals 1 commercial success! Research Technology Management, 40(3), 16 -27. Touryalai, H. (2013). Technology, not pizza, helps Domino's crush competitors and grow faster than Mc. Donald's overseas. Retrieved from http: //www. forbes. com/sites/dalebuss/2013/05/01/with-dominos-live-test-pizza-chainhas-nothing-left-to-hide/ Turban, E. , King, D. , Lee, J. , Liang, T. P. , & Turban, D. (2011). Electronic commerce 2012 : a managerial and social networks perspective (7 th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall Zott, C. , & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2/3), 216 -226. doi: 10. 1016/j. lrp. 2009. 07. 004 Zott, C. , Amit, R. , & Massa, L. (2010). The business model: Theoretical roots, recent developments, and future research. (September 30), 1 -78. Zott, C. , Amit, R. , & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 1019 -1042. doi: 10. 1177/0149206311406265 >>APMG 8119: DIGITAL 37(4), ENTERPRISE
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