The divisions were selected from the company’s annual report. The most promising is the international franchise royalties and fees, which, together with the company’s capabilities, demonstrate the unrealized potential for entering the international market in a more planned and comprehensive manner (Domino’s Pizza, Inc., 2021). Given the already realized potential in the supply chain, where to remain competitive in the future, it is necessary to focus on technological developments, entering the international market not only through franchises can maintain the company’s growth rate. As a result, the maximum achieved in the US market, which is already showing negative dynamics in financial performance, cannot be considered a good division. However, at the same time, non-franchise competition in the US provides the bulk of the company’s revenue along with Canada.
Since the calculated IFE and EFE values are 2.84 and 3.02, respectively, franchising within the US is the determining strategy. It is because here Domino’s has a well-functioning logistics system, regular customers, and the realized potential of the company, which is transformed into an invaluable experience. In this area, where the company has almost the best performance in the industry, they can give the franchisee a more robust foundation through experience and reputation. Therefore, the international expansion strategy looks promising for the future, when there will be a more solid foundation in the US, allowing, given the mass of risks, to enter new markets. In any case, opening a company’s outlets can be complicated by several political, cultural, and economic factors, including solid competition and established consumer habits. The supply chain in this situation reflects the business maintenance strategy as the basis for other divisions. It makes little sense for a company to build its restaurants in the US, which demonstrates the location of this development vector on the IE matrix, which is presented in Figures 1 and 2.
Reference
Domino’s Pizza, Inc. (2021). 2020 Annual Report. Web.