Another opportunity that Pizza Hut has is their new ordering online system. Anyone with Internet access can order whatever they wish and get it delivered to their house without even speaking to someone. This program has just been started, so we do not have any numbers to support whether or not it will be a success.
Lastly, Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back program. These were implemented to make sure their customers were happy, and always wanted to return. In our plan, we will first give a situation analysis of current and relevant environmental conditions that affect our plan. Next, we will give a brief analysis of the current fast food industry, and any trends or changes that might occur in the future.
However, the fact that Pizza Hut does have a restaurant to run is also a weakness. Pizza Hut has higher overhead costs, due to the restaurant that other competitors don't have to deal with. Another result of higher overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices.
An indirect weakness that Pizza Hut has is that they have lost a lot of their customers and market share due to such intense competition with competitors. Pizza Hut's opportunities are almost endless. They can increase revenue with their new innovative pizzas, and increase brand loyalty with good customer service.
Pizza Hut's number one threats are from their competitors. Currently, their closest competitor is Domino's Pizza. Domino's main competitive advantage over Pizza Hut is their price. It is generally lower than Pizza Hut. Also, Domino's was very profitable when they ran the promotional deal of delivering a pizza within 30 minutes. However, many lawsuits have been filed against Domino's in the past for reckless driving by their drivers, so Domino's withdrew the promotion. Little Caesar's is another one of Pizza Hut's competitors, right behind Domino's in market share. Little Caesar's is famous for offering large quantities of pizza for less money. Other competitors include Papa John's, Sbarro, and Pizza Inn.
A problem facing all of the pizza chains is that each of their individual competitive advantages are pretty much everyone's competitive advantages. Most if not all the top pizza chains offer free delivery, and always have some sort of promotional deal offering large pizzas at reduced prices. Other competitors to take into consideration are frozen pizzas and make-it-yourself pizzas that are purchased in grocery stores. Some examples of these are Tombstone Pizzas, Boboli, and Di'Gornio pizzas.
1. Pizza Hut expanded its business into many parts of the country by the time of 1969.
2. Pizza Hut has always dominated the market and is free of challenge.
3. Fruits and salads are now commonly served at pizza restaurants.
4. The diversification strategy is to be the first mover.
5. In Pizza Hut, a Pan Pizza was ___________ to serve in 5 minutes.
6. If you want a pizza from Pizza Hut delivered directly to your house, you have to have ________ in the first place.
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