Presentation 6

1

Competitor’s Analysis

Porter’s Five Forces ModelCompetitive Advantage

POWER GAMES AMONG COMPETITVE PLAYERS

AKSHAY MATHURVINIT GUPTA

MBA- 2nd SemesterDMS, JNVU, Jodhpur

A CASE STUDY WITH

REFERNCE TO

PIZZA HUT

V/S

DOMINOS SWOT of Pizza Hut & Dominos

2POWER GAMES AMONG COMPETITVE PLAYERS

VISSIONDomino’s v/s Pizza Hut

“Exceptional People on a mission, to be best pizza delivery company

in the world.”

“Best Pizzas under on roof.”

3

Competitor’s Analysis


Who are CompetitorsWhat are their product &

ServicesWhat are their Market Share

What are their financial positions

What gives them cost & price advantage

What are their SWOTWho are potential

competitors

4

COMPETITORS STRENGTH WEAKNESS

Subway

a. King of sandwich market

b. Customised preparation

a. Still adapting to Indian taste

b. Expensive

Pizza Corner

Variety and Qualitya. Low investment in adb. Delivery not

satisfactory

Kfc Variety's master for chicken

More of chicken and less for veggies

Mc Donald’s

a. King of burger market

b. Fast servicesc. More offers

Lack of varieties

Papa John’s

Excellent Variety and Quality Expensive

Ccd Quality & variety in beverages

Concentrate more on beverages and less on

snacks

Baristaa. Excellent ambienceb. Variety in beveragesc. Quality assurance

a. Expensiveb. Lack of proper

distribution channels

5

Porter’s Five Forces Model


BARGAINING POWER OF

BUYERS

THREAT OF NEW

ENTRANT

BARGAINING POWER OF SUPPLIERS

INDUSTRY COMPETITORS

RIVALRY AMONG EXISTING FIRMS

THREAT OF SUBSTITUES

Competitive pressure coming

from threat ofentry of new

players

Competitive pressure

stemming from buyers

bargaining power Competitive

pressure coming from substitute products &

services

Competitive pressure

Stemming from suppliers

bargaining power

6

Competitive Advantage


Porter’s Generic Strategies

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate

competitive advantage” Jack Welch

DIFFERENTITAION

FOCUS COSTCOST

LEADERSHIP

DIFFERENTITAION

FOCUS

LO

W

HIG

H

NARROW BROAD

SCOPE OF BUSINESS ACTIVITIES

DEG

REE O

F P

RO

DU

CT

DIF

FER

EN

TIA

TIO

N


Porter’s Generic Strategies

8

Core-Competencies


Cost efficiency

Reliable Innovation CER Agility

Strategy Standard operations, nominal price

Ordering ease

“Khushiyon ki Home Delivery”

Outsourcing

Fastest delivery (30 min)

Structure

More outlets

System Wider reach

Quick service, Phone orders

Style Take away,Excellent offers

Quality standards

New crusts, toppings, flavours

Responsive to customer need

StaffShared values

Performance based incentive

Service levels

Think global act local

Skills Fast processing and delivery

Transparency

Domino’s

9

Core-Competencies


Pizza HutCost efficiency Reliable Innovation CER Agility

Strategy 5 star ambience

Best Pizza under one roof

Menu, 100% Jain pizzas, menu for busy bees

Outsourcing,Customer satisfaction

Variety, hangout zone, organises parties and meetings

StructureSystem Hygiene Incomparabl

e qualityCustomer focus,Wider reach

Phone orders

Style Excellent service,Quality standards

Unique dining experience, Half & Half pizza

Responsive to customer taste

Personalised service

Staff Customer mania

Warm and friendly attitude of staff

Shared values

Recognition, Team work, Service levels

Together we grow

Trust in people

Skills Accountability Thinking out of box

10

SWOT of Pizza Hut v/s Dominos


STRENGTH

Leading pizza delivery company in the US with more than 5,000 stores in the US

Less than 30 minutes home delivery

Global franchise operations - more than 3,500 in over 50 countries

Strong brand equity supported by heavy advertising & marketing campaigns

Supply chain & distribution network

Leader in online & mobile ordering

Pizza Hut is the market leader in providing different products of pizzas

Another big Strength and even a Competitive Advantage is the fact that they have a full service restaurant as well as delivery services

Because of the restaurant, Pizza Hut can market too many different segments that other pizza chains cannot. For example, Pizza Hut can market to families much easier than Domino's or Little Caesar's

Pizza Hut Domino’s

11



WEAKNESS


Inadequate advertisement

Inadequacy of outlets

High prices

They are providing less

range of products

comparatively with high

prices

They are more focused on

Western taste instead of

Eastern

Lack of parking facilities at

outlets

Slow growing and declining

same-store sales

Weakening bottom line

High staff turnover due to

lack of training and

development

Same and industrial flavour

Same sauce tastes like card

board

12



OPPORTUNITIESPizza Hut Domino’s

Growing fast food market

Introduce attractive offers

Diversification of new

products can increase

their market share.

They can reduce their

prices because of more

resources.

Bigger outlets

More vegetarian topping

also seafood topping for

pizza

Growing presence in

emerging markets,

particularly in India, China

Leverage supply chain &

distribution system to

introduce new products

13



THREATS


Closest competitor

Domino's Pizza whose

competitive advantage

over Pizza Hut is their

Lower price.

Little Caesar's right behind

Domino's in market share

famous for offering

delicious pizza for less

money.

Social factors can affect

their image as a Western

organization.

Changing consumer habits

towards healthier food

choices Franchise operations

affected by currency exchange fluctuations

Intensive competition from a fragmented number of small competitors

Better quality & variety of

competitors


THANK

YOU

Presentation 6

Documents

Transcript of Presentation 6