SWOT Analysis For Pizza Hut

2882 words (12 pages) Essay in Marketing

18/05/17 Marketing Reference this

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SWOT analysis is a technique for understanding your weaknesses and strengths in your business. It also can identifying both the opportunities that open for you and the threats that you face in your business. SWOT analysis is commonly used in part of the strategic planning for your product or service. By using SWOT analysis, it can help the management to improve their product or service. SWOT analysis also can help us notice that how does the competitors do in they business, are the business making the most of the opportunities available and how does a business should respond to changes in external environment.

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Strengths are part of the internal environment and internal environment are from SWOT analysis. Strengths can prove it characteristics in a business by how the business can give advantages. Pizza Hut have the largest chain all around the world. Nowadays, many people have care about they own health and so on Pizza Hut have provide hygienic foods so the foods they eat will be hygienic. Pizza Hut also have good advertising on the television, radio, newspaper and internet. Advertising may help to increase Pizza Hut sales or maintain Pizza Hut sales. Pizza Hut franchises are more than 20,000 all around the world. Pizza Hut is also hundred percent owned by YUM! Brand, Inc. YUM! Brand, Inc is a company that operates KFC, Wing Street and Taco Bell. Pizza Hut is also the brand leader in United Kingdom.

2.1.2 WEAKNESSES

Weaknesses are part of the internal environment and internal environment are from SWOT analysis. Weaknesses can prove it characteristics in a business by how the business can give disadvantages. Pizza Hut are having problem with their management because there are some internal conflicts between franchises and also the problem with the Pizza Hut computer systems. Pizza Hut loyal customers are also feeling dissatisfaction because the tastes of the pizza are not good as before. Pizza Hut is also lack of an organic pizzas and it will cause Pizza Hut to have limit on their target market. High class customer base are not going to Pizza Hut because Pizza Hut is a fast food restaurant. The customer in the fast food restaurant would like to have their foods serve in front of them as fast as possible. The high class base customers like to enjoy their food.

2.1.3 OPPORTUNITIES

Opportunities are part of the external environment and external environment are from SWOT analysis. Opportunities can prove it characteristics in a business by how the business can give a chance for us to improve our business. Pizza Hut has develops new pizzas with different flavors and sizes. It will also attract more customers to come to Pizza Hut. Pizza Hut also has opened new market lines like spaghetti to attract more customers. Pizza Hut have also put in much more effort in their home delivery services it has make the customer more fast to have their foods at home. Pizza Hut also has expands their business to other country like China, Malaysia, Korean, Japan and more. Now Pizza Hut is targeted the low class base customers because the low class base customers don’t have time to enjoy their foods because their need to rush to their job so their will choose to eat fast food.

2.1.4 THREATS

Threats are part of the external environment and external environment are from SWOT analysis. Threats can prove it characteristics in a business by how the business can let notice that may be a trouble in the business. The success of Pizza Hut has lead Pizza Hut to the market entry of many competitors such as Dominoes Pizza, Papa John’s Pizza and more. It also has make Pizza Hut competitors to copy Pizza Hut brands. There are also the threats of other competitors who tries to develop new meal. The economy is chancing and the government has also increasing the price of the ingredients that are now using by Pizza Hut. There will also be a threat in the pizza industry market. Who know that pizza will grow and stay in favor with customers or another type of food activity will replace pizza in the future.

3.0 PIZZA HUT MARKET SHARE STATUS

Pizza Sales Market Share at the Year of 2009

Pizza Hut 13.78%

Domino’s Pizza 7.60%

Papa John’s Pizza 4.23%

Others 72.2%

Pizza Franchises Market Share at the Year of 2010

1. Pizza Hut 11.65%

2. Domino’s Pizza 7.60%

3. Papa John’s Pizza 4.23%

4. Others 76.52%

Pizza sales market share at the year of 2009 first place are Pizza Hut. Pizza Hut percentages are 11.65 percent over 100 percent. Second place are Domino’s Pizza percentages are 7.60 percent over 100 percent. Third place will be Papa John’s Pizza percentages are 4.23 percent. Last will be others pizza restaurants percentages are 76.52 percent.

In the pizza industry, Pizza Hut is on the first place of franchises market share in the year of 2010 at United States. Pizza Hut percentages are 11.65 percent over 100 percent. Second place on the franchises market share in the year of 2010 at United States are Domino’s Pizza. Domino’s Pizza percentages are 7.60 percent over 100 percent. Third place on the franchises market share in the year of 2010 at United States will be Papa John’s Pizza. Papa John’s Pizza percentages are 4.23 percent over 100 percent. Last will be others pizza restaurants who have 62.52 percent over 100 percent at the franchises market share in the year of 2010 at United States.

Pizza Hut has rank in Top 189 at the Top 250 Global Brands at the year of 2007. Pizza Hut at the year of 2007 the brand value has worth $3,917m and the enterprise value worth are $17,046m. Pizza Hut has also rank in Top 197 at the Top 500 Global Brands at the year of 2008. Pizza Hut at the year of 2008 the brand value is worth $4,473m and the enterprise value are worth $21,655m. Pizza Hut has more than 30,000 franchises around the world like Pizza Hut has more than 6,000 franchises at United States and more than 5,139 franchises at the others 94 countries. Because Yum! Brand, Inc is the largest restaurant company. In term of the Yum Brand, Inc company, Pizza Hut will have more than 37,000 franchises at the others 117 countries. Pizza Hut also have many competitors like Domino’s Pizza, Papa John’s Pizza.

Pizza Hut (Pizza Hut, Inc) is a America restaurant that have franchise all around the world. Pizza Hut is a fast food restaurant that offer different styles of pizza along with side dishes like spaghetti, salad, breadstick, garlic bread, mushroom soup or chicken soup and more. Pizza Hut is founded at the year of 1958 at Wichita, Kansas. The founders of Pizza Hut will be Dan and Frank Carney. Pizza Hut is owned by PepsiCo Inc at the year of 1977 till 1997 because of some problem Pizza Hut has sells to Yum! Brand Inc at the year of 1998. Now Pizza Hut is hundred percent owned by Yum! Brands Inc. Yum! Brand Inc has also operates Taco Bell, Wing Street and KFC. Pizza Hut headquarters is at 7100 Corporate Drive Piano, Texas 75024, United States. There are more than 145,000 employees of Pizza Hut around the world.

3.0 CONCLUSION

The conclusion, for Pizza Hut SWOT analysis there will a few part like strengths that say that how the advantages give the Pizza Hut in market and weaknesses that give disadvantages to Pizza Hut market. There also opportunities like how we can have a chances to our business and threats that that have make our business in trouble. The franchises market share status for Pizza Hut is in first place at the year of 2010. Meanwhile, Domino’s Pizza is at second place and Papa John’s Pizza is at third place.

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1.0 INTRODUCTION

Macro environment are related to the forces that have an impact on society as a whole and not only on one or a few organizations. A single organization can’t usually have a significant impact on these forces and can only adapt it marketing mix to account for the opportunities and threats that arise. There are six major macro environment forces that impact on the organizations. The six major forces we will be deal with is demographic environment, economic environment, technological environment, cultural environment, natural environment and political environment. Not all forces will have an impact on your organizations. Therefore, we can use it in improving our business.

2.0ANSWER OF QUESTION

2.1 DEMOGRAPHIC ENVIRONMENT

Demographic environment is a data that related to a study of human growth population. The human growth population factors will be the population of a given race, location, age and occupation.

2.1.1 RACE

Every country have different races but not every country have more than three races. In Malaysia, we have different races such as Malay, Chinese, Indian and more. Different races have different tastes. As for Malay people, their like something that tastes more spicy like curry, laksa, nasi lemak and more. For Chinese people, we like something that tastes more salty and sour. Chinese people also like spicy foods but not every Chinese people like spicy foods. As for Indian people, their taste are more like Malay people. Their like spicy foods like curry and more. Pizza Hut should provide foods that tastes spicy to Malay people and Indian people customers that like spicy foods. As for Chinese people, Pizza Hut should provide foods that taste more salty and sour. I suggest that Pizza Hut should also provide a menu that suits every customers tastes.

2.1.2 LOCATION

Location is very important for running a business. Select a good location can help us increase our sales in many ways. In Malaysia, most of the Pizza Hut restaurant are opened near the town because more customers are at the town. But recently, most of the Pizza Hut restaurant are now opened near by houses because it is more easy for the customer who are live near by Pizza Hut. It make the customers visit Pizza Hut more often when the location is near their house. Because when the location are near their house, the customers that are not feeling to go outside to eat. So the customer can also went to Pizza Hut to order take away their pizza to go home to eat. It is more easy for them who are live near by Pizza Hut. It also can help Pizza Hut workers who are delivery pizza. It will be more faster for them to delivery pizza to the customer house who are live near by Pizza Hut.

2.1.3 AGE

It is not like everybody can accept new things but some people can easily accept and some people can’t even accept. Pizza Hut original from United States and Pizza Hut sells western foods. Malaysia is a east country and we even have different races so it will be hard for us to accept western foods. But Pizza Hut is very suitable for the younger generation people because younger generation people like something new. So their can easily accept western foods compare to the middle generation people. It is not like middle generation people cannot accept western foods but some of the middle generation people can’t accept westerns food. But the older generation people can’t even accept western foods. It is hard for the older generation people to try something new. Most of the older generation people prefers to eat their traditional foods like laksa, nasi lemak, roti canai, mee rebus, nasi kandar and more. I suggest that Pizza Hut should add some other food to the older generation people so it will suit their tastes. It also can help Pizza Hut to increase their sales.

2.1.4 OCCUPATION

Every person have to earn for their living. The only different is that how much their earn and when you earn more you can spend more on your living style. A high income workers like to spends more on their living style. Most of the customer in Pizza Hut are middle income and low income workers. High income workers like to spend their money at a five star hotel restaurant compare to a fast foods restaurant because high income workers like to take their time to enjoy their foods and they like to have better service but compare to a fast food restaurant. The customer in the fast food restaurant would like to have their foods serve in front of them as fast as possible. It is also a factor that makes our Pizza Hut restaurant sales that are dropping because the customer prefers to go to other restaurant due to their income and occupation.

2.2 ECONOMIC ENVIRONMENT

Economic environment is a factor that will affect the customers buying power and also their spending pattern. Customers like to try something new. When Pizza Hut opened new restaurant, the customer visit more often but after a few month customer begin to begin came less. In Malaysia, we also came to know that most of the customers are spending more in the early of the month and their even visit Pizza Hut more often but at the end of the month the customers are visit less Pizza Hut. Because when the early of the month the customers getting their paid and after the end of the month the customer have already spend their money at the middle of the month so in the end of the month their have to spend less. Even the government in Malaysia are increase the price of the products. The cost of the ingredients that Pizza Hut are using now is keep on increasing.

2.3 TECHNOLOGICAL ENVIRONMENT

Technological environment is a new technology that creates new markets and also can replaces existing products or services. Technology is very important to us. By using technology it can help us to live our life more easily. Technology effect Pizza Hut in so many ways. At home, we can even ordering Pizza Hut by using phone to call Pizza Hut to delivery to our house. If we are not using a phone we can even go online to order Pizza Hut because Pizza Hut has provide online order services. Pizza Hut also have provide WIFI in their restaurant because many customers would like to prefer going to a restaurant that has WIFI provide. It would be better if every Pizza Hut in Malaysia have a TV. We will get more customers at night because we can provide TV for them to watch sports program such as football, badminton, tennis, baseball, swimming and more.

2.4 CULTURAL ENVIRONMENT

Cultural environment is a cultural that is surrounding us. It can be changes depend on where we are. It can even be a lifestyle. Every country have their own culture. Pizza Hut is basically original from United States. Pizza Hut is overwhelmed by western cultural. In Malaysia, we have different religion such as Islamic, Buddhist, Hindu, Christian and more. Pizza Hut should provide foods that are suitable for every customers religion. Example for the customer religion are Islamic we should provide HALAL food for them to eat. As for the customer religion of Buddhist, not every Buddhist can eat beef so we should provide food that are suitable for them. Finally for the religion of Hindu, we definitely cannot provide beef for them because cow is their god.

2.5 NATURAL ENVIRONMENT

Natural environment is a growing shortages of raw materials. It can also be green movement. Whether is very important for us because it is part of our living. Malaysia is a hot country and Malaysia don’t have four seasons. Pizza Hut main product is pizza. Pizza is serves in a hot pan and the pizza is grilled. It is hard for the customers to eat pizza because of the whether.

2.6 POLITICAL ENVIRONMENT

Political environment is issues that include law, government agencies and pressure groups. Pizza Hut frame works on operating in the judicial system. Which may also have affects the business in many different ways. There are not political factors in Malaysia who are affecting Pizza Hut. Factors such as laws on business employment pollution and taxation apply on the organization it has follow to the rules.

3.0 CONCLUSION

The conclusion, for macro environment factors that will impact Pizza Hut in Malaysia will be six major forces like demographic, economic, technological, culture, natural and political environment. First, demographic environment factors that impact Pizza Hut by how they choose location, age of the customers, race and what the occupation for the customer. Second, economic environment are one the factors that cause impact for Pizza Hut economy. Third, technological environment are also one of the factor that affect Pizza Hut by using their technology services. Fourth, culture environment factor are the religion on Malaysia. Fifth, natural environment factor will be how the whether is in Malaysia. Lastly, political environment factor will be the taxation apply on the organization. This major forces are the factors that impact Pizza Hut in Malaysia.

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