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Value Chain Analysis for Pizza Hut
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by Group 3
Pizza Hut
Value Chain Analysis
Performing the analysis
There are two different approaches on how to perform the analysis, which depend on what type of competitive advantage a company wants to create (cost or differentiation advantage). The table below lists all the steps needed to achieve cost or differentiation advantage using VCA.
Pizza Hut's Value Chain
Value Chain Model
According to the model the activities are divided into two broad categories
- Primary activities - which relate directly to the actual creation, manufacture, distribution and sale of a product or service to the firm's customers
- Support Activities - which are economic activities that assist the firm's primary activities
Value Chain Analysis
- A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market
- The concept of value chain analysis comes from business management and was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.
- The value chain is a systematic approach to examin the development of competitive advantage.
- It is a tool used to identify various ways to create Customer Value
Pizza Hut's Strategy
Pizza Hut believes in making a perfect pizza with their extra ordinary menu and providing courteous and helpful service. They try to create and atmosphere that makes customers want to come back again and again.
Thus customers come in for the best pizzas and have a great dinning time in comfortable seating arrangements.
The basic marketing strategy of Pizza Hut is being customer centric and providing the best service.
Pizza Hut
Pizza Hut is one of the best wide spread international fast food chains. They offer different styles of pizza as well as some side dishes such as salads, pasta and wings. It is an American restaurant chain with over 6,000 Pizza Hut restaurants in the United States and more than 5,600 store locations in over 94 countries around the world.