It is one of the best fast food chains in the world. It was founded in
These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Stp analysis pizza hut on Fern Fort University extensive research — some of the strengths of Pizza Hut are — Good Returns on Capital Expenditure — Pizza Hut is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Superb Performance in New Markets — Pizza Hut has built expertise at entering new markets and making success of them.
The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
Strong Free Cash Flow — Pizza Hut has strong free cash flows that provide resources in the hand of the company to expand into new projects. Strong distribution network — Over the years Pizza Hut has built a reliable distribution network that can reach majority of its potential market.
This brand portfolio can be extremely useful if the organization wants Stp analysis pizza hut expand into new product categories. Successful track record of developing new products — product innovation.
Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Limited success outside core business — Even though Pizza Hut is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.
Pizza Hut has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors.
One of the reason why the days inventory is high compare to its competitors is that Pizza Hut is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. Financial planning is not done properly and efficiently.
The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. High attrition rate in work force — compare to other organizations in the industry Pizza Hut has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. This can impact the long term growth of Pizza Hut The marketing of the products left a lot to be desired.
Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
Opportunities for Pizza Hut — External Strategic Factors Government green drive also opens an opportunity for procurement of Pizza Hut products by the state as well as federal government contractors. Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments.
This should open a window of opportunity for Pizza Hut in other product categories. Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Pizza Hut to capture new customers and increase its market share.
A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. New environmental policies — The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Pizza Hut to drive home its advantage in new technology and gain market share in the new product category.
The new technology provides an opportunity to Pizza Hut to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
New trends in the consumer behavior can open up new market for the Pizza Hut. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales.
New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. No regular supply of innovative products — Over the years the company has developed numerous products but those are often response to the development by other players.
Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets. Certain capabilities or factors of an organization can be both a strength and weakness at the same time.
This is one of the major limitations of SWOT analysis. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.Pizza Hut-STP-4Ps 1.
Pizza HutRetail MarketingApplications 2. RetailingThe business activity that involved in sellinggoods or services directly to final consumersmostly for their personal useRetailer:A business whose sales come primarily fromretailing.
Pizza Hut SWOT analysis is covered on this page along with USP & competition. It also includes Pizza Hut's segmentation, targeting & positioning (STP) along with tagline & slogan.
Oct 16, · The first topic I chose to blog about is market segmentation. I decided to talk about about market segmentation and taget market of Pizza Hut in Morocco, as I had the chance to work there for about 2 years. But, before I start talking about the market segmentation and target market of Pizza Hut, let.
Pestle Analysis of Pizza Hut.
Pizza Hut is an international organization that has been running its business in the whole world. This food chain has its own challenges that have been faced by the owners of the organization as well as the team which manages all the affairs of the organizations.
These challenges are the internal as well as the.
Pizza Hut-STP-4Ps 1. Pizza HutRetail MarketingApplications 2. RetailingThe business activity that involved in sellinggoods or services directly to final consumersmostly for their personal useRetailer:A business whose sales come primarily fromretailing. Strengths in SWOT analysis of Pizza hut. Pizza hut has a Premium positioning in customer’s mind because it was the first entrant to start pizza franchise in India. The promotions and brand equity of pizza hut is better than competitors. Another strength of Pizza hut is the range of Italian food that it has. The pizza and pasta range is excellent and Pizza hut delivers on its promise of. Pizza Hut is one of the largest restaurant chains in the world and is a sub brand of Yum! Brands, Inc. The Pizza Hut owns and runs about 34, restaurants, provides home delivery services and also has kiosks in more than hundred countries.
SWOT analysis is a strategic planning tool that can be used by Pizza Hut managers to do a situational analysis of the firm. It is a useful technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Pizza Hut is facing in its current business environment.
Strengths in SWOT analysis of Pizza hut. Pizza hut has a Premium positioning in customer’s mind because it was the first entrant to start pizza franchise in India. The promotions and brand equity of pizza hut is better than competitors.
Another strength of Pizza hut is the range of Italian food that it has. The pizza and pasta range is excellent and Pizza hut delivers on its promise of.