Competitor Analysis
Competitor analysis is essential to the company, because it can help the company to obtain important information from competitor and with this information it can forecast competitors’ strategic actions. This analysis also enables the company to identify opportunities and threats. Every organisation operates within a given environment. An organisations task environment comp compri rise sess othe otherr orga organi nisa sati tion onss or vari variou ouss grou groups ps that that can can affe affect ct an organ rganis isat atio ion n (chermerhorn et al. !"##$. !"##$. %omino’s has many small and large competitors but its ma&or chain competitors are 'ia )ut, 'apa *ohn’s and +ittle Caesars. arket shares of leading pia companies according to sales are shown below.
arket Commonality and -esource imilarity arket Commonality is the number of markets with which the firm and a competitor are &ointly involved and the degree of importance of the individual markets to each. %ominos, 'ia )ut, 'apa *ohns, and +ittle Caeser compete against each other in multiple global fast food markets. /hereas, r esource esource similarity refers to how comparable the firm’s tangible and intangible resources are to a competitor’s in terms of both types and amounts. 0irms with simila similarr type typess and and amou amount ntss of reso resour urces ces are likel likely y to have have simila similarr stren strengt gths hs,, simil similar ar weaknesses, and use similar strategies.
The rivalry between dominos and its competitors demonstrates these e1pectations in the fast food business. These firms are using the integrated cost leadership2differentiation strategy to offer relatively better cost pias some differentiated features, such as services. 3ut again, most of the services provided by all the %omino’s competitors are same. 0or e1ample, delivery services, variety of menus and better dine in services.
Pizza Hut4
'ia )ut is %omino’s foremost competitor with over #5, """ stores and market presence in about 67 countries of the world. 8t concentrates on readytoeat pias with customisable variety of toppings offered according to local tastes and culture. 8t offers a variety of products such as chicken wings, sandwiches, pasta and specialty pias. The firm is the leading 9uick serve pia company consistently ranking among the top #"" 3est :lobal 3rands on 8nterbrand ()itt, %uaneireland ; )oskisson !"##, p. #"<$. There is a high market commonality between %ominos and 'ia )ut. %ominos is an direct competitor of 'ia )ut because the services provided by both pia providers is the same where providing variety of 'ia according to customer preferences, which they fulfil the definition of market commonality. 0urthermore, the degree of resources similarity between %ominos and 'ia )ut is high because are the companies having almost same resources in terms of their structure, focus, and features that customer’s find attractive. 'ia )ut is even more focused on health conscious people by incorporating a salad bar into their sit down restaurant section and by serving nutritional pasta bowls. They also have an e1tremely strong brand image and compete with %omino’s for brand recognition. Papa John’s
'apa *ohn’s is third largest pia restaurant in the world with a total of 5, <=< restaurants around the world. 8t offers a wide variety of products and has a market share of 7.<> percent in the ?nited tates. To recover low sales in !""6, 'apa *ohn’s has invested heavily in advertising for e1ample, sponsoring the @0+ (@ational 0ootball +eague$ (Annual -eport !"#"$.
The market commonality between 'apa *ohn’s and %ominos is high, where both targeting at a similar group of customers with similar products. The products offering of 'apa *ohn’s are similar to %ominos because they both offer a wide range of 'ias to serve the different consumer needs. )owever, 'apa *ohn’s embracing customiable pia concepts as consumers
demand the freedom to add as many as toppings of their choosing for a set price. /hen %ominos have focused on delivering faster to customers, 'apa *ohn’s is focusing on delivering great 9uality items. 3esides, the degree of resources similarity between %ominos and 'apa *ohn’s is reasonably high. )owever, 'apa *ohn’s have differentiated itself as a brand that offers 9uality pia at premium prices. The premium position has garnered the company favourable profit margins by avoiding deep discounts on menu items, whereas %ominos always providing huge discounts on their pia.
Little Caesar’s
+ittle Caesar’s is the fourth largest pia company in the world with more than !,<"" restaurant around the world. 8t offers a variety of pias and specialty items such as churros, Caesar dips and cheese bread. +ittle Caesar’s lacks a delivery service and it is a ma&or competitor for %omino’s. The firm is known for its 9uality pias and has topped many pia value rankings for many years in a row ()itt, %uaneireland ; )oskisson !"##, p. #"$. There is a high market commonality and moderate resource similarity. As %ominos, +ittle Ceasers also targeting same group of customers but only the group who love to dine in. )owever, it also has same lunchtime and dinner crowds. %espite not having delivery, +ittle Caesars was arguably the most convenient of the group because of its superb speed and price point. As a conclusion, it could be conclude that 'ia hut, dominos, 'apa *ohn’s and +ittle Ceasers would fit into definition of direct competitors, where the companies going after similar customers with more similar competitive resources.
