Pizza Hut SWOT Analysis

adam June 2, 2010 Fast Food 5 Comments

Strengths

Pizza Hut is an international franchise and restaurant chain having presence in many countries and is originally based in Texas, USA. The company specializes in the American-style pizza that till to date no other pizza restaurant has been able to compete. The company also offer many other food items and side dishes like breadsticks, wings, garlic bread etc.

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 34,000 restaurants, provides home delivery services and also has kiosks in more than hundred countries.

Pizza Hut with a large market share and a strong network has become a market leader in United Kingdom.

The restaurants offer a large variety and types of pizzas under one roof and is known for its innovative pizzas.

The marketing of the company is another strength of the company. The have many media partners and use television advertising that attracts people of various ages. The company has a huge market share; more customers mean higher percentage in sales that leads to greater profits.

Pizza Hut faces very low competition. The company has some strong competitors like dominos pizza, but Pizza Hut has an advantage because of its strong network, restaurant outlets and delivery service. The company has well differentiated its products and has a large loyal customer base.

Weaknesses

The loyal customers of Pizza hut feel that there is a decline in satisfaction and other pizza chains and restaurants are offering much more.

There are some internal conflicts within the company as there processes are computerized and centralized. This has lead to high turnover as well as de-motivation of staff.

Opportunities

The company can come up with innovative Pizzas, new flavors and recipes with different types of crusts and sizes etc.

The company can open its restaurants in different countries that have potential customers for example it can expand its network in India, Pakistan, Bangladesh etc.

The company can even introduce new, healthy and fresh food items related to pizza for example they can introduce fresh pizzas. The people are these days more concerned about their health and pizza hut can meet this need by introducing fresh and healthy pizzas.

Threats

The competition in the Pizza industry is increasing, as customers now prefer and look for availability and affordability.

The rising prices of special ingredients like cheese, used in pizzas.

The company faces serious threats from other international restaurant chains like KFC, McDonalds, Dominos pizza etc. McDonalds even tried to introduce pizza in its product portfolio called McPizza. Besides these competitors the local restaurants that provide pizzas offer food item at more affordable prices as well as know the taste of the local people better. Many of its competitors are trying to capture the market share of the Pizza hut by introducing similar kind of pizzas and food items.