Domino's Global Expansion in India

The History of Domino's and India

In 1960, Tom Monaghan and his younger brother purchased a small pizzeria called Dominicks's in Ypsilanti, MI. Tom Monaghan became the sole owner of the business in 1965 and changed the name to Domino's Pizza, Inc. The idea for the original company logo was to add a dot for new store location, but Domino's saw fast success, and it was impossible to keep up with all the new outlets. Domino's had reached 200 franchisees by 1978, and then started to go international in 1983. By 1997 the company had opened its 1,500th store outside of the United States, and they also changed up their brand image. This was lead by a fresh marketing campaign called "Image 2000," aimed at giving the company a more contemporary look. This campaign brought a modified logo and a new store concept. In 2000 Domino's was ranked fifth among American fast foods restaurants active internationally, and this made them the world leader in pizza home delivery. Currently the company has over 9,742, and franchised stores located in 70 different countries.

Domino's has experienced great success in a number of countries around the world. India is among the top 4 countries that Domino's has made large profits in. This success has not come easy, and it required the company to take close look at the nation's history, as it pertains to entrance of American companies. In the late 1900s India saw great success at the hands of modernization, largely because of their investment in the countries infrastructure and a rise in the growth rates of agriculture. A new government took over the country in the mid-1980s and led a liberalization of the economy. This accompanied with the slowed population growth, put a small dent in the poverty that has long stricken the country (Lal, 1).

Currently, India is a far more modernized nation then they ever were in the early 2000s, but they have not grown in a necessarily healthy way. Software and business process outsourcing industries have been booming in the country, but the only problem is these industries do not provide jobs for many people. Software and business process outsourcing, in a country that has a population of over a billion people, employ fewer than a million people. This has left a small upper class that lives a life of pure luxury, and vast amount of people that have to fight to find work. This usually results in low-cost labor in industries from construction to household help (Venkat, 1).

In addition to some of the problems that India has had with modernization, they also have of number of geographic underpinnings that make it difficult for businesses to enter the country. Most of these underpinnings are deeply rooted in the environmental issues the country has long experienced. Many people believe that the country's pollution is a result of the country's fast growing population. The solution to this problem has been debated, and some people feel that the economic growth of country is leading to environmental issues. Other people believe that the developing economy is the best way to fix the problem, because bringing wealth to the country will give India better resources for combating the situation (Varanasi). Never the less, these environmental issues have made it hard on businesses and the people of the India.

India's Current Economic/Environmental/Technological Conditions

The current economic condition for India has them ranked as a lower-middle income economy, and as of 2012 the company was ranked 127th in the world with the country's GDP PPP per capita at $3,705 IMF ("Country and Lending Groups"). They are fast-growing developing country with an attractive massive market. Historically, India hasn't been an attractive market due to anti-foreign business policies and regulations but since their reforms to join the new economic era it has become an increasingly attractive market for foreign investors. In regard to the economic laws in India, they are known for having restricted trade, controlled economies, closed markets, and hostility to foreign investment in the past. Due to this, they still have relatively high tariffs in comparison to other nations. They still are also struggling with inadequate protection of intellectual property rights. Because of their late transition from traditional policies, policymakers are still lagging in reforms that could make foreign investment more attractive. Corruption and bribery also play a major issue in India's economy. India's labor cost is extremely low which is a benefit for foreign businesses. According to Dev Amritesh, a VP of Marketing for Domino's India has noted that recently there have been trends of more females joining the workforce, rising incomes, especially amongst youth and a growing middle class that have been changing lifestyles

Due to rapidly increasing population, India's environmental control management has been poorly maintained, causing life-threatening environments for people currently living in India. There has been 60% contamination of the soil due to the overuse of farmland, which serves as peoples source of income for selling crops. 1927 - The Indian Forest Act and Amendment, 1972 - The Wildlife Protection Act, Rules 1973 and Amendment 1991, 1980 - The Forest (Conservation) Act and Rules, 1986 - The Environment (Protection) Act, are some of the acts that have been created to help protect the agriculture and population of India. In addition water has been argued as the most threatening health problem in India. The water has dropped more than 10 meters due to the failed attempts to irrigate annual monsoon water to the farmlands. Some of the acts that were created to protect the water are: 1977 - The Water (Prevention and Control of Pollution) Cess Act, 1974 - The Water (Prevention and Control of Pollution) Act, 1978 - The Water (Prevention and Control of Pollution) Cess Rules, 1991 - The Coastal Regulation Zone Notification (Environmental Health Perspectives). Lastly India air has become dangerously toxic due to their industrialization in the coal and other polluting industries. In addition, the country's congested traffic plays a huge role in the air pollution, which resulted in many premature deaths. Some of the important laws that were enacted to help protect the air are: 1948 - The Factories Act and Amendment in 1987, 1981 - The Air (Prevention and Control of Pollution) Act, 1982 - The Atomic Energy Act, 1987 - The Air (Prevention and Control of Pollution) Amendment Act.

Domino's has been successful in regard to keeping up with technology advancements. Apart from making a Facebook and Twitter page for people to "like" and "follow, their main website allows customers order online if it is more convenient