Competitive Strategy of Alibaba & Dominos Pizza-Samples for Students

Question: Discuss about the Competitive Strategy of Alibaba and Dominos Pizza. Answer: Introduction Competitive strategy consists of plans and strategies to gain competitive edge in the market. The present report provides brief description of Alibaba and Dominos Pizza. It also includes the theory of business model innovation of both the companies and how they have used it to create a distinct image in the industry. Company 1: Alibaba Alibaba Company was a B2B enterprise in its initial years but they increased their portfolio to make sure that they grow at a rapid pace in the market. Chinese market has been experiencing a gradual shift in the technology and expectations of the consumers. Alibaba adopted innovation, organisational flexibility, information system and replanning process for continuous development (Business Model Alibaba, 2014). Alibaba has been selected for the analysis because it is the largest retailer in the world. They have been able to capture 80% of the market in China. The company has been benefitted from their cost leadership strategy which has been excellent. They have been proactive in their approach due to their replanning process. Alibaba has been able to generate profits even at lower profit margins due to their effective cost leadership strategy. Their business model is based on continuous development which allows them to make changes in their processes and strategies as per the business environment. They have been using Revenue model innovation theories in the organisation (Gnzel and Holm, 2013). It provides a direction to the organisation because the revenue framework takes into account the target audience, pricing strategy, marketing, value chain and growth. They have developed a well structure revenue business model which helps them to accomplish the main objectives of the firm. They have been changing their plans and approaches to allow innovation and development. They have ensured that they provide re-configuration in their products, services and value mix. They use advertisement, promotions, commission, transaction and revenue subscription model (Matzler, Bailom and Kohler, 2013). They have been able to strive in the e-commerce industry. Apart from this, they have competitive advantage in the industry due to their proactive approach and first mover advantage. The Revenue model innovation of Alibaba focuses on sharing revenues. It makes it easy for people to connect and sell their products through its platform. Furthermore, they have ensured that they take into consideration the competitive environment in the market. Their flexible business model has been beneficial for them because they can make changes before other companies. This has allowed them to create products and services as per the demands of the consumers. They also allow their customers to give their feedback about the products and services (Business Model Alibaba, 2014). Even though the competitive rivalry has been strong in China but the business model of Alibaba has allowed them to create a large customer base. They have been able to outperform in the industry as compared to other rivals. The main components which have helped them to become a leading online store are competitive prices, high information density, reliability, latest technology and customised services (Casadesus Masanell and Zhu, 2013). They have been able to expand their business to any different countries and their revenue model has given them advantage in the region. Company 2: Dominos Pizza Dominos Pizza is restaurant chain which has more than 13,000 outlets in different countries. They have used brand recognition and innovations to gain strategic competitive advantage in the industry. They have ensured that they provide high quality products and adapt to the needs and preferences of the consumers (Dominos Competitive Strategy, 2013). Dominos Pizza have been using enterprise business model which has been beneficial for them. They have more than 10,000 outlets and franchises which covers 70 countries. Dominos Pizza has been selected for the analysis because they have become a market leader. Their business model of franchises and low cost infrastructure has made it more successful as compared to other competitors (Matzler, Bailom and Kohler, 2013). Dominos has used differentiating targeting strategy to take advantage of the opportunities in the market. They have variety of products in their portfolio and they have established the brand with the help of competitive pricing strategy. Furthermore, they have been able to change the value chain after the adoption of enterprise business model (Casadesus Masanell and Zhu, 2013). It has allowed them to improve the efficiency and quality of the products. They have also ensured that their business possesses deeper knowledge about their customers. It helps the business model of the company to evolve. But it requires positive organisaitonal culture which has been provided by the management. Their production, distribution, management, offerings and sales have improved. Their networks have helped them to expand their reach which has increased their customer base (Gnzel and Holm, 2013). Dominos have used a business model typology to make changes in their existing strategies and plans. It can be used for reconfiguration and business innovation. It includes assessing the current business model, planning implementation and monitoring of new business model. Their supply chain has also been vertically integrated which has enabled them to reduce the cost and manage their resources (Dominos Competitive Strategy, 2013). Along with this, the new business model has significantly improved their distribution system and value delivery process. Their turnaround time has also reduced which has helped them to increase the satisfaction level of the consumers. Their awareness and innovated strategies have been beneficial for them. Other competitors such as Papa Jones, Pizza Hut, Greco, etc have found it difficult to match up with the services and quality provided by the Dominos. Their model is difficult to replicate for the new companies and the competitors in the market (Casadesus Masanell and Zhu, 2013). Dominos has made sure that they continue to grow and adapt to the changing busine ss environment. Conclusion It can be concluded from the above that both Alibaba and Dominos have been performing well in terms of competition and profitability. They have focused on innovation and continuous development. Alibaba has been following Revenue model innovation theory in the business. On the other hand, Dominos has been using enterprise business model to take first mover advantage in the industry. References Business Model Alibaba. 2014. [Online]. Available through: https://groupithq.blogspot.in/2014/10/business-model-of-alibaba.html [Accessed on 15th August 2017] Casadesus Masanell, R. and Zhu, F., 2013. Business model innovation and competitive imitation: The case of sponsor based business models. Strategic management journal, 34(4), pp.464-482. Dominos Competitive Strategy. 2013. [Online]. Available through: https://www.forbes.com/sites/halahtouryalai/2013/10/15/technology-not-pizza-helps-dominos-crush-competitors-and-grow-faster-than-mcdonalds-overseas/#53efdeecfdcf [Accessed on 15th August 2017] Gnzel, F. and Holm, A.B., 2013. One size does not fit allunderstanding the front-end and back-end of business model innovation. International Journal of Innovation Management, 17(01), p.1340002. Matzler, K., Bailom, F., Friedrich von den Eichen, S. and Kohler, T., 2013. Business model innovation: coffee triumphs for Nespresso. Journal of Business Strategy, 34(2), pp.30-37.