On June 15th, 1958, two brothers opened the first Pizza Hut restaurant in Wichita, Kansas (U.S.) by purchasing second-hand equipment and renting a small building on a busy cross-road. The concept was relatively new at the time and the brothers quickly saw the potential of this new enterprise. A short time later, they begun to open new restaurants and developed schedules for franchised outlets. Their chain started growing up very fast, ten years later Pizza Hut Inc. counted almost 300 restaurants. In 1986, it had 5,025 domestic units and annual sales of almost $2 billion. Half of the outlets were franchised.
A Pizza Hut restaurant is characterized by a particular freestanding design with a prominent red roof. The restaurants are full-service, eat-in/carryout with about 60 to 90 seatings, open from 11 a.m. to midnight.
Pizza Hut´s franchisees have special rights to most of the smaller restaurants, company-owned outlets stand in metropolitan with a high population density.
Table of Contents
- About Pizza Hut
- Strategic Analysis
- EXTERNAL ENVIRONMENT
- Pizza Market
- Competition in the Pizza Market
- Demand on the Product
- Features of the Product
- FIRM INTERNAL
- Franchising at Pizza Hut
- Pizza Hut Franchisees - The IPHFHA
- Finance
- Suppliers
- Marketing strategies
- EXTERNAL ENVIRONMENT
- Strategy Formulation
- BUSINESS LEVEL
- Delivery at Pizza Hut, Inc.
- Strength
- Weakness
- Opportunities
- Threads
- CORPORATE LEVEL
- BUSINESS LEVEL
- Strategy Implementation
- ADAPT STRUCTURE TO STRATEGY
- Location Regard
- Business Proposal
- STRATEGIC LEADERSHIP
- ADAPT STRUCTURE TO STRATEGY
- References
Objectives and Key Themes
This case study analyzes Pizza Hut, Inc.'s strategic position in the pizza market during the mid-1980s. The objective is to examine the company's external environment, internal capabilities, and strategic choices, highlighting key factors contributing to its success and competitive challenges.
- Competitive Dynamics in the Fast Food Pizza Industry
- Pizza Hut's Franchising Model and its Impact
- Market Segmentation and Consumer Demand for Pizza
- Strategic Analysis of Pizza Hut's Business and Corporate Levels
- The Role of Delivery and Marketing in Pizza Hut's Strategy
Chapter Summaries
About Pizza Hut: This chapter details the origins of Pizza Hut, tracing its growth from a small restaurant in Wichita, Kansas, to a national chain with thousands of outlets by 1986. It highlights the company's early adoption of franchising and its distinctive restaurant design, emphasizing the rapid expansion and establishment of its brand identity within the pizza market. The chapter underscores Pizza Hut's early success and sets the stage for a discussion of its later strategic choices.
Strategic Analysis: This section provides a thorough examination of Pizza Hut's competitive landscape. It analyzes the pizza market's growth, driven by the increasing popularity of home delivery. The chapter dives into the competitive dynamics, showcasing key rivals like Domino's and Godfather's Pizza, highlighting their strengths and weaknesses relative to Pizza Hut's market position. The analysis also details market segmentation (eat-in, carryout, delivery), showing how Pizza Hut positioned itself in each segment and the differing levels of success it found. Crucially, this section sets up the following chapters by identifying internal and external factors shaping Pizza Hut's future strategies.
Strategy Formulation: This chapter focuses on Pizza Hut's strategic choices. It analyzes the company's business-level strategy, particularly focusing on the significance of its delivery service, its strengths and weaknesses, opportunities, and threats. It likely further discusses the corporate-level strategies used by the firm to manage its overall operations and expansion. This section offers insight into how Pizza Hut sought to leverage its resources and capabilities to maintain and enhance its market position.
Strategy Implementation: This section deals with how Pizza Hut executed its strategies. It analyzes how the company adapted its structure to support its strategic goals, such as considerations regarding restaurant location and operational efficiency. Furthermore, it explores the role of strategic leadership in driving Pizza Hut's success. The summary likely discusses the management and decision-making processes critical to effectively implementing Pizza Hut's plans and maintaining success.
Keywords
Pizza Hut, franchising, fast food, pizza market, competition, Domino's Pizza, Godfather's Pizza, strategic analysis, market segmentation, delivery service, marketing strategies, competitive advantage, business strategy, corporate strategy, expansion, growth.
Pizza Hut Case Study: Frequently Asked Questions
What is this document?
This document is a comprehensive language preview of a case study analyzing Pizza Hut's strategic position in the pizza market during the mid-1980s. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main objectives of the case study?
The case study aims to examine Pizza Hut's external environment, internal capabilities, and strategic choices. It highlights key factors contributing to the company's success and its competitive challenges during that period.
What topics are covered in the "Strategic Analysis" section?
The "Strategic Analysis" section delves into Pizza Hut's competitive landscape, analyzing the pizza market's growth, the competitive dynamics with rivals like Domino's and Godfather's Pizza, market segmentation (eat-in, carryout, delivery), and internal and external factors shaping Pizza Hut's strategies.
What aspects of Pizza Hut's operations are examined?
The case study examines various aspects of Pizza Hut's operations, including its franchising model, its delivery service, its marketing strategies, its financial aspects, its suppliers, and its overall business and corporate level strategies.
What is discussed in the "Strategy Formulation" chapter?
This chapter focuses on Pizza Hut's strategic choices at both the business and corporate levels. It analyzes the significance of its delivery service, its strengths, weaknesses, opportunities, and threats (SWOT analysis), and how the company sought to leverage its resources and capabilities to maintain and enhance its market position.
What does the "Strategy Implementation" section cover?
This section explores how Pizza Hut executed its strategies, including adapting its structure to support strategic goals (e.g., restaurant location and operational efficiency), and the role of strategic leadership in driving the company's success.
What are some key themes explored in this case study?
Key themes include competitive dynamics in the fast-food pizza industry, Pizza Hut's franchising model and its impact, market segmentation and consumer demand for pizza, strategic analysis of Pizza Hut's business and corporate levels, and the role of delivery and marketing in Pizza Hut's strategy.
What keywords are associated with this case study?
Keywords include Pizza Hut, franchising, fast food, pizza market, competition, Domino's Pizza, Godfather's Pizza, strategic analysis, market segmentation, delivery service, marketing strategies, competitive advantage, business strategy, corporate strategy, expansion, and growth.
What is covered in the "About Pizza Hut" chapter?
This chapter details Pizza Hut's origins, its growth from a small restaurant to a national chain, its early adoption of franchising, its distinctive restaurant design, and its rapid expansion and brand identity establishment within the pizza market.
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- Stefan Schweig (Autor:in), 1994, Case study: Pizza Hut, Inc., München, GRIN Verlag, https://www.grin.com/document/45066
