In 2015, the firm introduced ordering via Twitter, where customers could do so via text by sending a pizza slice emoji and in February 2016, Domino’s extended ordering and tracking capabilities to the Apple Watch.5 Their strategy was clear:
deepen the digital relationship with pizza lovers and continuously improve every aspect of the customer experience through relentless digital innovation. Or as executives put it, “We will continue to invest to grow our digital lead. We are just as committed to keeping our lead as we were to achieve it.”6 As of 2020, Domino’s pizza lovers could place their order through any major digital channel, from WhatsApp to Google Home (Figure 8.1).
One area where the pizza delivery giant had taken a conservative approach was food delivery aggregators. In fact, the firm had shunned all the major aggregators of demand, from Deliveroo in Europe to DoorDash and Uber Eats in the United
States. Allison explained, “When a customer orders from Domino’s, I want a Domino’s uniformed driver to show up and deliver that pizza . . . It helps us to control customer experience and also the quality of our product.”7 However, thecompetitive pressure from delivery aggregators forced Domino’s to lower its long-term sales growth forecast.8 Yet as of 2020, Domino’s continued its commitment to independent delivery.
Discussion Questions
1. Do you believe that Domino’s multichannel digital ordering is an example of an IT-dependent strategic initiative?
Explain.
2. Do you believe that the multichannel digital ordering initiative has the potential to create added value? Substantiate your answer.
3. What would you do next if you were put in charge of the initiative?
4. How do you judge Domino’s decision not to join food delivery aggregators?
