Domino's Pizza

590 Words3 Pages
Domino’s Pizza International Inc. Domino’s Pizza is the world’s leader in pizza delivery with more than 9 million pizza pies delivered each week throughout the world. Domino’s went international in 1983 with its first international store opening in Canada. Couple years after, they expanded and by 1996 Domino’s had a presence in over 40 countries and operated over 100 stores outside the United States. The company was really successful in some countries like Japan, Mexico and Taiwan while they failed in others like in Germany, Spain, France and Czech Republic. After reading that case we came out with some factors that affected the success of Domino’s entry into foreign markets. One of the reasons why Domino’s Pizza was successful in Japan, Mexico and Taiwan was because they were using master franchise model. Under this model the franchisees were provided with exclusive rights to operate stores or to sub-franchise them in a particular area. Through its Master Franchise model, Domino’s was able to reduce the risk connected with entering and operating in different international markets. This model also helped Domino’s to localize its products to suit the needs of different markets. For example, in Japan the master franchisee was KKY Higa Corporation headed by Ernest Higa who had a significant presence and knowledge about the local markets and he was the one who really help Domino’s to be successful. At the beginning, Higa succeeded by sticking closely to Domino’s formula but later he realized that in order to expand even more he had to adapt to local conditions and customers’ preferences. That was a great idea, when company is going international, it is important to consider different taste preferences and ingredients used in making various pizzas since not all countries have the same preferences. Another reason why Domino’s pizza was successful was that the
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