Pizza Hut Strategic Analysis 2023
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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This report presents a comprehensive analysis of Pizza Hut, a leading pizza chain in the global market. It examines the factors that contribute to its competitive advantage, as well as the challenges and opportunities it faces in the dynamic and evolving industry. The report aims to provide useful insights and recommendations for the strategic decision-making of the company and its stakeholders. It offers an in-depth analysis of Pizza Hut by assessing the key opportunities and factors that have contributed to its growth in the industry.
Founded in 1958, Pizza Hut is one the largest restaurant chains in the world with over 19,034 restaurants and delivery outlets in over 100 countries (Forbes, 2023). Pizza Hut has its headquarters in the United States in Wichita Kansa. The restaurant chain is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company (Yum! Brands, Inc. Annual report, 2022).
Pizza Hut faces competition primarily from; Domino’s, McDonald’s, Papa John’s, Little Caesars, Chuck E. Cheese, Subway, KFC, Wendy’s, Taco Bell, Chick-fil-A, Arby’s, and Wingstop.
In 2021, Pizza Hut ranked second among the major restaurant chains in terms of market share. Pizza Hut had a 23% share of the total sales in the restaurant chain industry. However, Pizza Hut still lagged behind its main competitor, Domino, which had a dominant 42% market share. Dominos maintained its leading position by offering fast delivery, innovative products, and attractive promotions. Papa John's was a close third with a 22% market share, followed by Little Ceaser with a 13% market share (Statista, 2023).
Pizza hut strategic analysis answered questions such as; what are the key performance indicators of Pizza Hut? What is the competitive strategy of Pizza Hut? What are the available opportunities for Pizza Hut? What are its strengths and weaknesses? What are the threats of Pizza Hut?
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Pizza Hut Strategic Analysis, 2023 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Gain an understanding of Pizza Hut and the factors that influence its strategies
- Evaluate an organization's strategy, and business environment in order to identify issues, risks, and opportunities and how they affect its operations and strategic position in a market, using concepts such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies.
- Use our case study and apply it to a real case study company.
1.0 INTRODUCTION
Overview of Pizza Hut
Founded in 1958, Pizza Hut is one the largest restaurant chains in the world with over 19,034 restaurants and delivery outlets in over 100 countries (Forbes, 2023). Pizza Hut has its headquarters in the United States in Wichita Kansa. The restaurant chain is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company (Yum! Brands, Inc. Annual report, 2022).
The restaurant chain operates in the sale of Pizza, Pasta, Wings, Flavored Bread, Breadsticks and Cheese sticks, and Cold and Hot Beverages. It serves more than 1.7 million pizzas every day to its customers worldwide. In addition, the restaurant also offers delivery services, carries out casual dining segments, and many more around the world. It is also well known for its culture to fulfill the objective of satisfying each and every customer.
According to its latest financial statement, the company earned $6.9 billion in 2023, a 1.5% increase from $6.8 billion in 2022 and a 6.2% increase from $6.5 billion in 2021. The company attributed its success to its innovative menu, loyal customer base, and strategic expansion in emerging markets.
The aim of this report is to analyze the business environment of Pizza Hut, a global pizza chain. The report will apply various analytical tools, such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies, to evaluate the macro and micro factors that affect Pizza Hut's performance. The report will also provide a strategic overview of Pizza Hut, covering its financial results, market position, competitive edge, technological innovation, pricing policy, and other aspects.
Pizza hut strategic analysis answered questions such as; what are the key performance indicators of Pizza Hut? What is the competitive strategy of Pizza Hut? What are the available opportunities for Pizza Hut? What are its strengths and weaknesses? What are the threats of Pizza Hut?
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