SWOT Analysis Every organization has its strengths, weakness, opportunity and threats. So, the SWOT analysis for pizza hut is as under: Strength: Pizza hut is the dominant restaurant for selling pizzas, they have had been dominating the market and controlling the prices of pizzas according to their needs. They are the only company to have innovative range of pizzas under one roof. The pizza hut company is mainly specialized in pizzas and they had come out with variety of choices (which other competitors don’t obtain).
Pizza hut also has a very unique and famous media advertisement which influences the consumers. Their contact number is also very special because it is extremely easy to remember. The food or menu attracts people of various ranges from young to old. The prices of food in pizza hut are reasonable and affordable. Thus, it can be enjoyed by people from different economic and social status. The pizza hut company is one of the strongest companies which have a good financial status.
Besides that pizza hut sits in the top of global full-service restaurant tree. The services provided by the company can bring in more customers. There good image makes the organization more strong. Pizza Hut is providing good taste, quality products with qualified staff, good atmosphere and hygienic environment. They are also providing free home delivery service which is more convenient for the customers. Weakness: Loyal customers are feeling that the satisfaction of the pizzas is declining.
This may lead to low customer satisfaction and a reduction in customers and credibility in the market, this may lead to customers converting to main competitors such as domino’s pizza. Pizza Hut Company is also facing problems in a country which has many races, lifestyle, and cultures because it doesn’t look appealing for some of the people so expanding the franchise are difficult for the company. The most of the pizzas is non-veg and there is only limited option for vegetarians. Thus, limits the target market.
Huge restaurant and high maintenance cost causing the price of the pizzas to rise. The percentage of tax which is charged from the customers is 15% compared to other franchise which charges only 5%. The menus are more focused on western taste instead of eastern. Opportunity: New markets can be explored and new opportunities they can gain. Pizza Hut can come up with the new products considering the Eastern taste of the people as like McDonalds. Diversification of new products can increase their market share. They can reduce their prices because of more resources.
Pizza Hut has targeted upscale products and a downscale consumer base because this will attract customers who are more willing to buy these Pizzas. 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. Threat: Rising competition undermines Pizza Hut as consumers go for greater convenience. The competitors like dominos and shakeys are trying to compete.
These competitors are trying to attract the customers by offering them pizzas with lower prices and temporary promotions. A serious threat is from McDonald’s who have been trying to introduce a new meal that is a Pizza called: McPizza. Social factor also can affect their image as a western organization. Rising cheese costs threaten margins, cheese is essential to the business as it is there primary good, there for they are unable to go without it, this may lead to Pizza Hut eventually buying goods from abroad or buying cheaper brands. Grand Strategies