TEAM MEMBERS:

KINLEY SITHUP TSHERING (112379)

DINESH TIRWA (107447)
KINLEY GYELTSHEN (104542)

GROUP 1

CASE STUDY
15/04/2024
Case study: Pizza delivery with unmanned drones

Abstract

Domino’s Pizza, a global pizza restaurant chain headquartered in Ann Arbor, Michigan, is
renowned for its innovative approaches to food delivery ("Domino's," 2024). Since its founding
in 1960, Domino's has continuously adjusted to new technological advancements to improve
both consumer satisfaction and operational effectiveness. The company operates thousands of
stores worldwide, utilizing a combination of standard outlets and powerful online ordering
platforms. Domino’s has been at the forefront of utilizing technology in the food industry, with
initiatives ranging from mobile apps to GPS tracking of delivery orders. The exploration of
unmanned drone delivery represents another bold step towards revolutionizing the logistics of
pizza delivery.

The case study emphasizes on Domino's Pizza and other businesses like SF Express, which
discusses the opportunities and difficulties related to the integration of unmanned drone
technology into commercial industries. Drone delivery services provide lower costs, greater
accessibility to remote locations, and increased efficiency. Domino's drone pizza delivery project
in the UK received attention from the public and demonstrated the potential effectiveness of this
new approach. However, the case highlights significant regulatory barriers, particularly in the
United States where the FAA’s restrictions on commercial drone usage pose obstacles to
widespread adoption.

In addition to delivery services, the case examines other potential uses of drone technology in
public safety, law enforcement, and agriculture. The benefits of drones are numerous and include
cost-effectiveness, adaptability in difficult locations, and real-time monitoring. However, safety,
privacy, and regulatory compliance continue to be the top concerns. To fully utilize drones for
business purposes and ensure their sustainable and responsible integration into daily operations,
it is important to deal such obstacles with effectiveness (Eric, 2022). In brief, the case highlights
the necessity of flexible rules and technology advancements to enable the smooth integration of

1|Page
drones into current corporate operations, thereby transforming industries and creating innovative
prospects for productivity and expansion.
Key Issues or Problem identified:

1. Regulatory Obstacles: The regulatory framework regarding commercial drone usage is

complicated and diverse, with many different countries imposing various restrictions. The
Federal Aviation Administration (FAA) in the US imposes strict limitations on
commercial drone flights, which restricts the scope of operations available to companies
like UPS and FedEx. It takes a lot of time, energy, and resources to comply with these
regulations, which delays the widespread use of drone technology for delivery services.
Moreover, the absence of globally standardized guidelines impacts drone-related
businesses from trying to expand their markets and operate business internationally
(Dolfsma, W. And Seo, D, 2013).

2. Safety Concerns: Safety is the first priority while incorporating drones into airspace that
is used by manned aircraft. Strong safety measures and collision avoidance technology
are necessary considering to the major challenges posed by mid-air collisions and natural
disasters or calamities. Regulatory agencies, business partners, and tech companies need
to work together to make sure drones are smoothly integrated into the current airspace
management systems in order to successfully reduce the risks. Likewise, the increasing
acceptability and decreasing objection to drone use across a range of businesses depends
on public confidence and trust in the safety of drone operations.

3. Implications for Privacy: The extensive usage of drones raises major privacy issues
regarding continuous monitoring and tracking of people's movements on both public and
private property. Public mistrust is encouraged by the idea that drones equipped with
cameras may collect private data and violate people's privacy. Clear guidelines and
protocols need to be put in place for the gathering, storing, and use of data obtained via
drone monitoring in order to minimize these worries. Transparency and accountability
policies are also essential for promoting trust and ensuring ethical drone use while
upholding people's right to privacy.

2|Page
 4. The Adoption of Drone Technology Faces Supply Chain and Technical Difficulties:
Two obstacles stand in the way of drone technology's broad implementation.
Implementation across industries is delayed by technical obstacles including short battery
life, capacity restrictions, and insufficient sense to prevent capabilities. Continuous
research and development to improve performance, dependability, and autonomy is
needed to solve these issues, as should investment in infrastructure support like as
communication networks and charging stations. In addition, traditional supply chains are
being disrupted by the emergence of low-cost drone manufacturing facilities, particularly
in countries like Mexico. This is putting pressure on established market players and
increasing rivalry. Businesses must modify their supply chain plans and business models
to focus on efficiency and innovation if they want to prosper. Integrating regulations is
crucial for creating fair opportunities and promoting international trade in drone
technology (Low, M.B. and MacMillan, 1988).

Solutions or Recommendation:

1. Regulatory Obstacles

Solution: By establishing coordinated international regulations for commercial drone

usage.
 By establishing international regulations, it will simplify operations and facilitate market
expansion. There is a need for collaborative effort among all regulatory bodies, industry
stakeholders and policymakers to develop uniform standards, such as those proposed by
the International Civil Aviation Organization (ICAO) and the European Union Aviation
Safety Agency (EASA), (Pilot & Pilot, 2023). Aside from that, there should be a
regulatory tools and experimentation terms and conditions for all the regulators to review
the viability of drone technology and constantly make changes to counter risks
effectively. This approach will help develop innovation friendly and can easily overcome
challenges of digital era.

3|Page
 2. Safety Concerns

Solution: By investing more in advanced collision avoidance technology and safety

regulation.
 There should be a development of strong safety regulations and collision avoidance
technologies to lower the risk of mid-air collisions. This includes investing more in
research and development with advanced drone technologies, such as real-time
monitoring systems, automatically avoiding collisions and incorporating drones into the
current airspace control system. Moreover, it's critical to build the public's trust in drone
safety through responsible usage of policies, accountability, and transparency (6 Barriers
to Drone Adoption in Infrastructure & Transportation and How to Overcome them,
2022).

3. Privacy Implications

Solution: By implementing strong privacy regulations and guidelines for drone

operations.
 Strong privacy regulations means comprehensive and stringent rules and guidelines put in
place by governments or regulatory bodies to protect individual’s privacy rights and
setting a clear standards for data collection, storage and use of data gathered through
drone surveillance or monitoring. There should be transparency measures, such as public
disclosure of drone monitoring activities and data usage policies, which will help build
trust (Sasikumar, 2023). Additionally, implementing a good privacy protection measures
in public and VIP areas, such as restricted flight zones, in order to prevent drones from
invading on personal privacy will help address concerns about constant observation and
monitoring of individuals activities.

4. Technical and Supply Chain Challenges

Solution: By investing in research and development to overcome technical limitations

along with infrastructure development for supporting drone operations.

4|Page
  In this globalization era, there is technology upgrades day-by-day, so based on this there
should be a continuous research and development to enhance drone performance,
reliability and autonomy. This includes Improving short battery life, capacity restrictions,
and insufficient sense to prevent capabilities. Drone companies can integrate with
government agencies and tech academic institutions to advance drone technology and
address supply chain disruptions (Drone Inspection Solutions, n.d.). Moreover, investing
in supporting infrastructure such as charging station and communication network to
facilitate wide range drone adoption. Additionally, drone companies should adapt
business models and supply chain strategies to respond to the disruptions caused by low
cost drone companies. Implementing these solutions will enable drone companies to
overcome challenges in the evolving landscape of drone technology.

Q.5 Specify precisely how the Mexican maquiladoras can provide US manufacturers with a
way of competing with Chinese firms.

 The Mexican maquiladoras present a unique opportunity for US manufacturers to

effectively compete with Chinese firms due to several strategic advantages. First and
foremost, Mexico’s relatively close connection to the United States significantly reduces
transportation costs and time compared to importing goods from China. As described in
the case study, products shipped from China can take up to three months to reach the US
by sea, whereas Mexican exports can arrive within a couple of days via truck. This
optimized logistics process is particularly advantageous for those industries requiring
quick turnaround or delivery phases and immediate fulfillment manufacturing practices,
allowing US manufacturers to respond more quickly to changes in market demands and
fluctuations (Eric, 2022).

 Moreover, in recent years, Mexico's cost competitiveness has risen in comparison to

China. The pay difference between China and Mexico has decreased as a result of rising
salaries in Chinese firms, making Mexico a more appealing choice for low-cost
manufacturing. Additionally, Mexico benefits from favorable trade agreements with 44

5|Page
 other countries, including the North American Free Trade Agreement (NAFTA), which
eliminates the majority of tariffs between Mexico, the United States, and Canada. This
tariff-free environment further reduces costs for US manufacturers sourcing components
or finished goods from Mexican maquiladoras.

 Along with that, Mexico has an increasing number of engineers with advanced product
design and development skills and a competent labor force. For sectors like aerospace
and defense, where accuracy and technological know-how are critical, this competent
labor base is essential. US manufacturers can obtain a competitive advantage over their
Chinese counterparts by investing in design and development within Mexico's
maquiladora zones ("Case study - Pizza delivery with unmanned drones -management
and innovation - Sabathino junior Pando," 2020). This enables industry to benefit from
the knowledge and expertise resource that's accessible to their employees and strengthen
innovation and product quality.

 Likewise, the government's initiatives to promote innovation and the country's supporting
industrial ecosystem, which includes tax incentives for maquiladoras, help to create a
favorable environment for US companies seeking to start or grow their operations in
Mexico (Pepitone, 2013). All of these elements put Mexican maquiladoras in a strong
position to attract US corporations looking to compensate for growing costs in China and
improve their competitiveness in the global manufacturing market. This environment
encourages collaboration between US manufacturers and Mexican firms, enabling the
incorporation of cutting-edge technologies into manufacturing processes. For instance,
the case study focuses on 3D Robotics, a Mexican entrepreneurial company that uses US
technology innovations to create cost effective drones. By establishing such partnerships
and investments, US manufacturers can benefit from Mexico’s manufacturing capabilities
to strengthen their supply chains and increase their competitiveness against Chinese
firms.

 Therefore, the Mexican maquiladoras give American companies a strong competitive

edge over Chinese companies by providing close cooperation, economical labor, skilled

6|Page
 labor, advantageous trade arrangements, and a regulatory framework that stimulates
innovation. Embracing Mexico's manufacturing skills helps US corporations strategically
position themselves inside North America's integrated supply chain network, while
simultaneously addressing the issues provided by rising costs in China.

References

Case study - Pizza delivery with unmanned drones -management and innovation - Sabathino

junior Pando. (2020, February 6). Course Hero | Own the study

hour. https://www.coursehero.com/file/54633529/Case-Study-Pizza-Delivery-with-

Unmanned-Drones-Management-and-Innovation-Sabathino-Junior-Pando/

Case study 2. (n.d.). prezi.com. https://prezi.com/p/7rbetmrq9ujf/case-study-2/

Domino's. (2024, April 12). Wikipedia, the free encyclopedia. Retrieved April 14, 2024,

from https://en.m.wikipedia.org/wiki/Domino%27s

Eric. (2022, September 20). Pizza delivery with unmanned drones’ case case study solution for

Harvard HBR case study. Caseism. https://caseism.com/pizza-delivery-with-unmanned-

drones-case-160554

Pepitone, J. (2013, June 4). Domino's tests drone pizza delivery.

CNNMoney. https://money.cnn.com/2013/06/04/technology/innovation/dominos-

pizza-drone/index.html

Studypool homework help - Case study pizza delivery with unmanned drones management and

innovation sabathino junior Pando. (n.d.). Studypoolwork

Help. https://www.studypool.com/documents/11884695/case-study-pizza-delivery-

with-unmanned-drones-management-and-innovation-sabathino-junior-pando

7|Page
6 Barriers to drone adoption in infrastructure & transportation and how to overcome them.

(2022, December 7). Commercial UAV News. https://www.commercialuavnews.com

Drone inspection solutions. (n.d.). https://forcetechnology.com

Pilot, T. M. M. C. D., & Pilot, T. M. M. C. D. (2023, June 15). Five obstacles to drone adoption

and how to overcome them. Aerial Northwest | Oregon Drone Photography & Video

Services - Oregon-Based FAA Certified Aerial Drone Photography Services.

https://aerialnorthwest.com

Sasikumar, S. (2023, June 23). Challenges of adopting drone technology in the agriculture sector.

https://www.linkedin.com

Lee, J., & Kim, J. (2018). Regulatory challenges and policy recommendations for the commercial

drone industry. Technology in Society, 54, 1-7.

Rudolph, B., & Caplan, R. (2019). Balancing privacy and innovation in drone technology: A

Framework for policymakers. Journal of Policy Analysis and Management, 38(3), 758

784.

Arrieta, A. (2022, August 29). Over-the-Horizon drones line up but privacy is not in sight.

Electronic Frontier

Foundation. https://www.eff.org/deeplinks/2022/08/over-horizon-

drones-lineup-privacy-not-sight

Earley, M. (2021, April 2). Three Mexico supply chain challenges.

Tecma. https://www.tecma.com/three-mexico-supply-chain-challenges/

Mexico flying labs. (2023, May 3). Flying Labs. https://flyinglabs.org/mexico/

(n.d.). notitle. https://faadronezone.faa.gov/

8|Page
P-themes. (n.d.). Mexico drone laws. UAV Systems

International. https://uavsystemsinternational.com/pages/mexico-drone-

laws

9|Page