Interactions include potential new threats from new entrants and substitutes and bargaining power of suppliers and buyers (Mastering Strategic Management Saylor Academy, 2016, p. 25). Domino's Pizza faces tough competition because the food franchising market is saturated. For Domino's Pizza, a strong competitive rivalry force is based on the following external factors, a large number of companies and consistently low costs. The high availability of substitutes or other pizzerias causes Domino's Pizza's bargaining power to decrease. Suppliers also have an important impact on a company. The large supplier population weakens the impact on the organization. Supplies such as flour and meat are in abundance in this area. The risk of substitute products is high. The threat of local pizzerias or pizza chains with competitive prices raises big problems for Domino's Pizza. New competitors would affect Domino's Pizza's market share. The impact of new entrants is relatively low as capital costs are moderate for the new food chain
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