Marzilli’s - Case Analysis
Prepared By: Group 2Prabin PaudelShailesh LamichhaneUrmila MallaGovind Shah
Case Summary
• Marzilli’s Fine Italian Foods founded in 1935 by Gino Marzilli
• The business proved to be quite successful over the years
• In 1960, began producing homemade pasta and high-quality sauces with Italian foods
• In 1972, handed over his business to his only son Jim
Case summary continued…• The business remained successful in
1980s but recently, sales have shown a steady decline
• Some reasons for declined sales- Old Italian population moved to suburbs- Young professionals populate nearby areas- Lack of knowledge regarding Italian cuisine from
frequent customers
• Over past year, business barely at breakeven point
Strengths
• Specializes in Italian Cuisine• Highly demanded by Italian cuisine lovers
mainly older generation Italians• Niche market segment i.e. focus on Italian
foods segment
Weaknesses
• Less variety on types of cuisine• Resistance to change• Less prospects of expansion into
“American” foods to attract more customers
Opportunities
• Demographics– Disparity in age of local customers– Older customers are more knowledgeable
regarding traditional cuisine
• Political/Legal :– Company acts and rules and regulations – Favorable government policy on companies– Favorable laws
Opportunities continued…
• Economic :– Unemployment rate– Wage levels– Currency convertibility
• Socio-cultural:– Promotion of traditional Italian cuisine– Temporary workforce– Promoting Italian cultural heritage
Opportunities continued…
• Technological :– Improving operations processes through use
of technology– Use of e-commerce in selling Italian foods
Threats
• Demographics– Relatively younger professionals as
customers– Income level disparity among customers
• Political/Legal :– Minimum wage of employees – Role of Taxation– Unfavorable government policy– Unfavorable laws
Threats continued…
• Economic :– Role of unemployment– Higher wage levels– Currency convertibility
• Socio-cultural:– Temporary workforce
Threats continued…
• Technological :– Competition through e-commerce
• Industry environment:– Domestic Italian cuisine restaurants and
businesses– Availability of substitute products
Vision Statement
• To focus on Italian food market by promoting Italian heritage and culture
Mission Statement
• To establish Marzilli’s as a leader in Italian food products.
Main Strategy
• Focus Strategy (Niche or Segmentation)– Involves concentrating on a particular market
or segment i.e. Italian foods market– Matches with the strengths of the business by
focusing on Italian food segment– Can be a source of competitive advantage for
the business
Alternative Strategy
• Product Diversification Strategy– Expansion of the business into “American”
foods grocery store so as to attract more customers
– Fails to take advantage of the strengths of the business
– May lead to a weaker situation for the business
THANK YOU
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