Review the case study of Domino’s Pizza™ in Chapter 16 of your text, and discuss the following:
- Discuss the significance of cultural differences to Domino’s™ product attributes strategy.
- Strategically, why is it critical for Domino’s™ management to correctly determine which attributes to change and which ones to retain as the firm enters a new country?
Just do response # 1 to 3 down below only.
Hello Class and Professor,
Dominos is a successful business not only in the United States but also internationally. Its success as an international business has a lot to do with their ability to adapt to the cultures of the country in which they do business. Because of their ability to adapt to the cultural differences it has allowed the business to grow into these international countries. Due to their cultural product attributes it ensures satisfied customers all over the world.
Without determining these cultural differences based on the country they are expanding into Domino’s would not understand the wants and needs of their customers which would cause the business to potentially fail or even start off with a bad reputation. Once the business has lost its reputation it would be very hard for them to gain the confidence of their consumers to try them again even once they understood what the customers wanted.
Cultural difference plays a big part in Domino’s success. Domino’s started off as a United States based pizza shop and expanded into the United Kingdom, Canada, India, and other countries. According to Hill and Hult they have around 5000 stores in the United States, 750 stores in the United Kingdom, 650 stores in India, 400 stores in Canada, as well as other stores in other countries (2018). In order to do well Domino’s has had to look at the cultural differences in the countries. Consumers in India have different food preferences that consumers in the United States. Rai states that Domino stores in India have a pizza that cost 35 rupee (which is the equivalent of sixty cents) and is made in less than ten minutes (2015). Domino’s does a lot of researching when expanding into a different country. They modify the menu according to the location and the food preferences of the citizens (Rai, 2015). It is important for Domino’s to make changes to their menu or they would not do well in countries like India. By changing their menus they are catering towards the consumers interest which helps them maintain customers and add more Domino stores.
Hill, C.W.L & Hult, G.T.M. (2018). Global Business Today. (10th ed.). New York, NY: McGraw-Hill Education.
Rai, S. (2015). How Domino’s reinvented itself to win in India. Retrieved from https://www.fastcompany.com/3039746/how-dominos-wo…
Domino’s franchise is growing overseas, their franchise is the highest outside of the US and roughly second in the US. There is such a wide variety of restaurants and food chains in America that they have decided to expand to the UK and Asia. In Japan, ordering pizza is considered a special occasion and on average people only order it 4 times a year. In countries like Japan, they eat more seafood than Americans do. Their pizzas have shrimp, foie gras and even crab. Food presentation is also more important in their culture so the pizzas take more time to make and the toppings are evenly distributed. Some of their pizzas costed around $50 vs in the US where you can buy 4 or 5 pizzas for that price. Technology has also impacted Domino’s marketing strategies. “Domino’s mobile app for ordering pizza is better than its rivals’.” Information technology also helps drive sales for Domino’s vis-à-vis local pizza entrepreneurs. At this time, about 58 percent of Domino’s orders are digital in the United Kingdom and about 40 percent in the United States.” (Hill, Hult, 2018)
It is important to change certain attributes because our world is culturally diverse and although it is a North American company, countries overseas are much different. They would research the cultural differences before opening up a chain and decide what they need to change. As stated above, they had to change the presentations of their pizza from how it is in the US, (where we are more focused on a timely delivery so the pizza isn’t always presented the best) to Japan where they prefer good presentation.
Hill, C., Hult, T. (2018) Global Business Today, McGraw-Hill Education, New York, NY https://purdueuniversityglobal.vitalsource.com/#/books/1260479528/cfi/6/2!/4/2@0:0