Pizza Cut Value Chain Analysis - 2022 Words

PIZZA HUT VALUE CHAIN ANALYSIS: About Value Chain Analysis: Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. A value chain identifies and isolates the various economic value adding activities such as differentiating a product, lowering the cost, and meeting need quickly that occur some way in every firm. It portrays activities required to create value for customers of a given product or service. It tells where low cost advantages exist; in what ways each activity can be undertaken so as to differentiate it from that of a firm’s competitor, how to deliver satisfaction to customers as quickly as possible. Business is viewd as a†¦show more content†¦Procurement: (This concerns how resources are acquired for the business) Main issue for Pizza hut was to provide quality tasty Pizza’s at affordable cost in Indian Market. They aimed to provide a quality product to their customer and on the other hand be responsive as well. The cost will go high and so to be efficient enough they need to maintain the supply chain. For this they concentrated on economies of scale and developed a chain of local suppliers for 95% of its ingredients. However as they aim to provide world class facility and taste, Pizza hut imports the main taste causing ingredients like pepperoni, mozzarella cheese from Australia and spain resp. But due to this the cost of the product increases. But by local sourcing of all other ingredients like vegetables, tomatoes, wheat they could compensate this increased cost. Carton boxes are also purchased locally to benefit from the economies of scale Their strategic decision here is to form a chain of local suppliers to reduce their cost of material procurement. However further because of entry of other competitors like Domino’s to Indian market Pizza hut further tried to reduce its cost without affecting quality or taste. For this Pizza hut has established a tie up with Bangalore based Dynamix Dairy Industries Ltd(DDIL) for sourcing mozzarella cheese. By this the cost and lead time for cheese has reducedShow MoreRelatedWimpy, Debonairs Pizza And Steers Essay1602 Words   |  7 PagesWimpy, Debonairs Pizza and Steers, three of Famous Brands Ltd most successful franchises. In this research task these three franchises will be analyzed and compared to determine the challenges faced by each franchise and discover which of the three franchises would be a better investment. A short summary of the franchises is given as well as a SWOT analysis, Porter`s Five Forces Analysis, and a Pestle Analysis to investigate the three franchise and determine their investment value. 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