International Business (Domino's Pizza) Essay Example | Topics and Well Written Essays - 1750 words

global Business (Dominos Pizza) - Essay ExampleThe paper will discuss the methods of international expansion the confederacy utilise to date and its leave development methods, Dominos Pizza methods using in distinguishable markets, as tumesce as the possible combination of international expansion methods. The paper will also critically appraise the online strategy and give appropriate recommendations for further development.2. The most appropriate Dominos Pizza development method, as well as the best method of international expansion is licensing and franchising We have developed a large, global, diversified and commit franchise vane that is a critical component of our transcription of rules-wide success and our leading position in pizza pie delivery. As of March 21, 2004, our franchise store network consisted of 6,878 stores, 63% of which were located in the contiguous unite States (7). These brass has doubtless advantages namely for such global international company a s Dominos Pizza. The franchise outline allows minimizing such negative barriers of international expansion as language barrier, local governmental measures and the registration of trademark. The system also provides the adaptation of Dominos Pizza rights and regulations to the cultural differentiations of various countries We also adapt our system to the local market to accommodate cultural differences in delivery vehicles, store design, signage, etc. Pizza toppings be the most common cultural adaptation. We have pickled ginger in India, squid in lacquer and green peas in Brazil (3). Dominos Pizza quick service restaurants in different countries are not a wholly subsidiary of Domino Pizza Company (like McDonalds in the UK). s in the UK). They are based on Franchising Agreement with Dominos Pizza International, Inc. A franchisee must have appropriate local market, business strategies and experience knowledge Internationally, we have also been able to grow our franchise network by attracting franchisees with business experience and local market knowledge. We generally use our master franchise model, which provides our international franchisees with exclusive rights to operate stores or sub-franchise our well-recognized brand name in their markets (7). Through well developed franchising system Dominos Pizza Company gains constant royalty payments which allow the company to develop and expand to international markets A substantial percentage of our earnings is generated by our committed, owner-operator franchisees through royalty payments and revenues to our vertically-integrated distribution system. Royalty payments yield ironlike profitability to us because there are minimal corresponding company-level expenses and no capital requirements associated with their collection (3). The egress and revenue of Dominos Pizza is mainly provided by its franchising system development and royalty payments from numerous stores throughout the world. The company has chosen the most appropriate method of international expansion. Dominos Pizza makes franchising agreements with appropriate firms working in germane(predicate) market segments and having local market features knowledge.