Pizza hut porters value chain model

Creating and Sustaining Superior Performance in A value chain is a series of activities or processes that aims at creating and adding value to an article product at every step during the production process. The logic behind it is simple:

Pizza hut porters value chain model

It operates in countries with more than 20, outlets. It was the first western fast food chain to enter China and now it is its largest market worldwide. KFC is a subsidiary of the Yum! Brand, a company that also owns Taco Bell and Pizza Hut chains.

It started off with a different name and the name KFC was adopted in The products of KFC include fried chicken, fries, coleslaw, desserts, soft drinks, and breakfast. Competitive Rivalry — High The fast food business is one of the most competitive businesses today.

KFC is also facing intense competition in its business from other players in the industry mainly McDonald which is taking it head on for the top position in the global market. Although there is product differentiation in some products, most of the products are common such as fries, soft drinks, coleslaw, salads etc.

As a result, each competitor tries to come up with schemes to attract customers.

Pestle Analysis of Pizza Hut | Marketing Dawn

Thus, the competitive rivalry for KFC is intense. Threat of New Entrants — Medium Fast food industry requires a large level of investments, marketing, and product development before a new entrant can make a place in the industry. The existing brands like KFC and McDonald have their brand image so strong that they have built up a huge loyal customer base.

These customers avoid going to any other place than these particular restaurants. The ability of the existing brands to ensure same product taste, restaurant ambiance, and excellent customer service worldwide has made further raised the entry barriers to this industry.

InRadix Fried Chicken was launched and has succeeded in gaining market share and attracting customers as it offers a fresh menu Cornelius, Thus, the threat of new entrants is medium for KFC.

Due to the very frequent and bulk orders, there are a large number of suppliers who are ready to agree to the terms of KFC and supply it with its required raw products.

Due to lack of product differentiation, the large size of orders, and a large number of suppliers; the suppliers do not hold bargaining power against KFC and cannot attempt to raise their prices. InKFC terminated a contract with one of its chicken suppliers due to their crude slaughtering of the hens.

Thus, the suppliers of KFC do not have any bargaining power over it. These customers have an array of choices to go to now e. Therefore, KFC cannot raise the prices and force the customers to purchase their products at higher rates. The customers will simply shift to another competitor.

Thus, the customers of KFC have a number of choices.

Performing a Value Chain Analysis

Therefore, the bargaining power of customers against KFC is high. The restaurant offers a number of other side dishes such as rice and mashed potatoes that KFC does not offer. Secondly, in many nations in which KFC operates, it is facing substitution by local restaurants such as Arabic Fried Chicken in the Middle East region.

KFC has tackled this issue by offering free Wi-Fi service at its restaurants and introducing the morning menu of breakfasts. Thus the threat of substitutes is high for KFC. Task 5 — 5 porter model KFC.The prospect of cheaper pizzas isn't to everyone's taste.

A group of 80 Pizza Hut franchisees recently failed to get an injunction against head company Yum! to stop the new pricing model. Pizza Hut is the largest chain pizza retailer in the world with over 12, locations worldwide and around locations in Australia alone. Pizza Hut offers a wide-ranging menu to the consumer.

Pizza Hut has an efficient and reliable service first step in Value Chain Analysis of Pizza Hut is to divide the organisation into important activities under primary or next step is adding value in the products through cost leadership strategy or .

KFC is a fast food restaurant chain, which specializes in fried chicken. It is the world's largest fried chicken chain with over 17, outlets in countries and territories as of December You can find more information about the business in its official website or Wikipedia’s article.

value chain is the control that different actors can exert over the activities making up the chain. The The actors in a chain directly control their own activities and are directly or indirectly controlled by other.

Pizza hut porters value chain model

This second largest Pizza chain of the world was founded in the year Today, it has grown an impressive presence globally with its stores operating across 85 markets.

Domino’s sells average 2 million pizzas everyday through its global Pizza system.

Value Chain Analysis for Pizza Hut by Garth Mc Lean on Prezi