Question

·Factor Endowments: How is Domino Pizza Inc impacted by factor endowments? In other words, does Domino...

·Factor Endowments: How is Domino Pizza Inc impacted by factor endowments? In other words, does Domino Pizza Inc have a competitive edge based on such things capital can be exploited for production?

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Answer #1

Answer: Domino Pizza is an e retailer that directly sells to its customers. It either purchases products from the other retailers or allow them to sell their own products using Domino Pizza platform. The company is not directly involved in the manufacturing and production process and hence factor endowment land; labour, capital, and entrepreneurship that can be exploited for production have no significant value for the company. The competitive edge of the company is based on the innovative virtual business model and hence the competitive advantage which it holds is not relevant for the purpose of production. However entrepreneurship shown by the company can be used in production processes also.

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