TABLE OF CONTENT

CONTENTS

PAGES

Company Background
1.1
Introduction
1.2
Company Profile

Country Competitiveness
2.1 Firm Structure, Strategy and Rivalry
2.2 Demand Condition
2.3 Factor Condition

45
56

International Entry Strategies

3.1 Where to Enter
3.2 When to Enter
3.3 How to Enter

8
89
9

1.0

Different Culture Environment

4.1 Malaysia
4.2 India
4.3 China

Conclusion
5.1 Strengths
5.2 Weaknesses
5.3 Opportunity
5.4 Threat

Bibliography

Company Background
1.1 Introduction
1

Pizza Restaurant was opened by two brothers Dan and Frank Carney in 1958 in Wichita,
Kansas. Dan and Carney borrowed 600 Dollar from their mother to open Pizza Hut
Restaurant. After borrowing 600 Dollar from their mother, they purchased second-hand
equipment and rented small building in their home town.
In 1959, the 3rd Pizza Hut restaurant was set up as a Franchise which they open in
Topeka, Kansas. Their vision is to develop Franchise System which became a worldwide
successful marketing model. Pizza Hut was first mover towards international market and
set up first Pizza Hut outlets in Canada in 1968. Almost ten years later, Pizza Hut serving
one million customers in a week in their 310 locations. In 1970, Pizza Hut was put on the
New York Stock Exchange under ticker symbol PIZ. International Pizza Hut restaurant
became 100 in number while the total number of Pizza Hut reached 2000 in 1976.
In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing.
Pizza Hut opened its 5000 unit in Dallas, Texas. Pizza Hut celebrated its 30th anniversary
with more than 6000 units in 1988. In 19 th May 1982, Pizza Hut began its operations in
Malaysia with the opening of its first outlet. In 1996, Pizza Hut sales in the United States
were over $5 million. However, Pizza Huts market share has slowly matured because of
intense competition from their rivals which is Dominos, Little Caesars and Papa John's.
In the past, Pizza Hut has always had the first mover advantage. Their marketing strategy
in the past has always been to be first mover. One of their main strategies, which they still
follow today, is the diversification of the products they offer. Pizza Hut is always adding
something new to their menu, trying to reach new markets.Nowadays, Pizza Hut is the
largest pizza restaurant company in the world specializing in American style pizza. As of
2012, more than 6,000 Pizza Hut restaurants in the United States, and more than 30,000
store locations which is 30,190 restaurants in 94 countries and territories around the
world. Employing more than 300,000 people and YUM! is the parents of company of
Pizza Hut. Nowadays they serve different style of pizza along with side dishes including
mushrooms soup, pasta, chicken wings, breadsticks and garlic bread.

PIZZA HUT LOGOS

1958 1967

1967 1999

1999 present
2

1.2 Company Profile

PRODUCTS:
FOODS AND
BEVERAGES
CEO:
DAVID C.
NOVAK
PROFIT:
$4.5 BILLION
(2012)

HEADQUARTERS:
ADDISON, TEXAS,
USA

SLOGAN:
EAT, LAUGH
AND SHARE

MISSION

FOUNDED:
WICHITA,
KANSAS, USA,
1958

COMPANY
NAME:
PIZZA HUT

TYPE OF
BUSINESS:
WHOLLY
OWNED
SUBSIDIARY

FOUNDER:
DAN AND
FRANK
CARNEY

: P.E.A.R.L.S
PASSION for excellence in doing everything
EXECUTE with positive energy and need
ACCOUNTABLE for growth in customer satisfaction
RECOGNIZE the achievement of others and have fun doing it

LISTEN and more importantly, respond to the voice of the

customers.
2.0 Country Competitiveness
Porters Diamond Model
3

2.1 Firm Structure , Strategy and Rivalry

Pizza Hut Malaysia Structure, they employ a centralized top management at the
strategic level that deals with supplier, franchising terms and business planning. While, at
the operational level, decentralize style is been used where the restaurant managers and
operators are empowered to carry out the duties and responsibility of providing high
standard of service, product quality and cleanliness of the outlets. Pizza Hut also takes
initiative to train their employees in order to increase the quality of work and maintain the
good services of Pizza Hut. Excellent service and product innovation came as a result of
training and sharing the invaluable experience and teaching and learning culture
practiced in all Pizza Hut outlets. As a result, Pizza Hut Malaysia had arranged an Annual
Championship Competition to develop teamwork for each outlet as the aspire to achieve
the excellence standards expected in term of hygiene, accuracy and speed of order
processing, general dining area cleanliness, hospitality and acceptable food quality.
Normally, a new recruit will been training as to practice a Pizza Hut work culture.
Pizza Hut brings their unique culture in a number of ways. For example, they established
YUM Leadership programs, where franchise and company leaders gather to learn how to
lead and build teams with common agenda. They also begun to started the values of
accountability, excellence and teamwork in their daily work.
Between the two levels are a team of managerial integrators who travel widely to the
outlets countrywide to ensure policies and operational procedures of up-keeping the
outlets are adhered to. This team provides the relevant support to ensure launches new
recipes and sales promotions are carried out smoothly nationwide simultaneously. Pizza
Hut Malaysia achieves this by Forging Excellence Through talented People.
The greatest success of Strategy, Pizza Hut in their practice of work is through
C.H.A.M.P.S. which is refer for Cleanliness, Hospitality, Accuracy, Maintenance, Product
Quality and Speed. C.H.A.M.P.S is umbrella operations program for training, measuring
and rewarding their employees performance against customer standard.
Pizza Hut was a restaurant system with three great brands but many different procedures
and training manuals but it is not too long ago. So, they went to work to weed out
redundancies, leverage learning and create a uniform approach for everything from the
way their train people to how they cook the food. The goal was, to ensure that their
customer receive the same level of superior service and food quality at all of restaurant.
Pizza Hut Rivalry, their top competitor within the same business is Dominos Pizza. The
differences between these two companies are their preparation time of making pizza and
their serving method to the customers. For example, when customer visits Pizza Hut
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there are crew members for his assistance. They assist the customers to their seats
based on the number of people. They will also provide the customer menu and explain
about the new items in menu. Once pizza has been order, the pizza is bought in pan and
then served to the customer. If the customers want to take away, the pizzas will be in
special package. For home delivery orders, Pizza Hut tries to deliver order within 30-45
minutes of order being placed. Through there are certain terms and condition like orders
are delivered to places which fall within a particular distance from the outlets. As
Dominos, when they receive order for take away or through telephone for home delivery
it follow a delivery schedule to meet its 30 minutes delivery criteria. For its delivery
promise to work, Dominos follow an 11 minute schedule, one minute for taking down the
order, one minute for Pizza making, six minute oven time and three minutes for packing,
sealing and exit. But, those who eat at the outlet itself are also served in the cardboard
box as for take away or home delivery instead of plates.
2.2 Demand Conditions
Customer Focus
In Pizza Hut, they listen and respond to the voice of customer. In order to satisfy
customers, Pizza Hut provides the best pizzas under one roof. This is because at Pizza
Hut they belief is that every pizza has its own magic, thus making it a destination product
that everybody looking for. Pizza Hut has been a menu that has constantly evolved and
expanded to cater to the changing needs and specific preferences of customer in different
parts of the world.

For example, in Malaysia, Pizza Hut have captured Malaysian

customer as their produced pizzas that fulfilled Malaysian customer taste. One of it when
Pizza Hut introduced customers of Rendang Pizza and Satay Pizza.
In order to attracted customer to visit Pizza Hut, they focus on affordable pricing. It enjoys
product quality leadership in the market and its pricing is just enough not to be out of
customers reach. Pizza Hut also introduced variety of pizzas menu in order to fulfill the
tasted of customer. Besides that, Pizza Hut not only served their customer for pizza only
but its also served variety of other product for example Salad and Pastas, Soup and
Dessert and Appetizers. Although all the product offering in Pizza Hut are not as fast
moving as its pizza, but they usually complement each other. For instance, when a
customer come to restaurant, its usually starts with some soup and garlic bread and then
moved on to pizzas along with some diet salads. In this way, Pizza Hut caters to different
people with different needs and tastes and preferences. This helps in increasing sales,
profitability, market share and above all.

2.3 Factor Condition

Factor condition refers to factor that effect the business of Pizza Hut. Probably, the factors
that bring a successful to Pizza Hut is the labor itself, advertising, technology and etc.
First labor itself. Wheres Pizza Hut give employees the tools to develop their skill. They
have comprehensive management development and training programme called
Developing Champions, which is one of the best in industry, combining both technical and
managerial training. For example, Restaurant General Manager plays important roles In
Pizza Hut. He has responsibility for the running of the restaurant, managing the business
as if it were their own, managing the financial side, product ordering, production, quality
monitoring, customer services and training and development of staff. Pizza Hut is
committed to recruiting and developing the very best people. They have a strong track
record of developing very best people at every level.
The Only Thing That Tops Our Pizza Is Our People!
Be the Leader, Act like the Leader.
Every crew of the Pizza Hut family believes in Tricons Leadership Principles. Pizza Hut
enables them to make success happen by pervading all levels of their organization from
restaurant crew member to upper management. Which mean, the high contribution by the
member is the one of the factor condition.
Through technology, Pizza Hut adding new technology to help make the business even
more successful. Their plan includes monitoring the progress of business at anytime,
anywhere via remote log-in functionally. They also plan to recruit people as employees
through online recruitment. Those applicants that meet the minimum criteria are added to
shortlist. A part from that, Pizza Hut also plans to do online training for managers and
team members. They also have used technology in order to increase their demand of
pizza. They provides home delivery and online order for customer convenience.
With the vision of Run-Great-Restaurant, Restaurant may be the one of the factor
contribute to successful of business. Pizza Hut maintained their good image in concept of
restaurant. Which is, they create a very interesting dine in where it is suitable for all level
of age. Plus, the restaurant concept is suitable for gathering and also can be used to
anniversary ceremony. This kind of concept attracted customer to seat and enjoy pizzas
at Pizza Hut Restaurant. Compare to Dominos where, they more focusing on delivery
pizza and they not provide really good dine in at the restaurant itself.

3.0 International Entry Strategies

After being success in their home country ,United States ,Pizza Hut decided to expand
their market from domestically to internationally .It is because their market growth at
domestic market has increases makes Pizza Hut believe that this firm must do
internationalization to find new market that is doing international entry strategies.
International entry strategies can be defined as firms strategy in moving the company
towards greater acceptance domestically and mainly at international level .There are
some basic decisions that Pizza Hut must take before a foreign expansion such as where
,when and how to enter .

3.1 Where to enter

Where to enter relates to the location of foreign expansion .Right location will realize the
long-run profit potential of the firm .Pizza Hut choose Canada as the first countries to
internationalize its product because of similarities of culture ,economic and political
conditions .The first international business done by Pizza Hut is to open their outlet at
Canada. Canada and United State almost have similar characteristic of culture, economic
and political condition. Because of the similarities ,it will easy for Pizza Hut to adapt with
Canada environment .Other than that ,United States and Canada are same region and
they are good neighbor which is easier to do internationalize . After that ,factor that Pizza
Hut selecting of which countries to enter next is based on demand and supply ,high
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consumer base ,high purchasing power and less competition .For example in Malaysia
,Pizza Hut open their branches at Mentakab ,Pahang in 1989 .At that time , Mentakab still
be considered as rural area .This is Pizza Hut long-term strategy to outreach those areas
where competition is low .

3.2 When to enter

When to enter also known as timing of entry ,is the next step for a firm after it has
identified attractive market .There are two significant issue that be produced in the timing
of entry ,whether the firm become first mover or late mover .In this case ,Pizza Hut was
the first mover company to enter business in pizzas industries .The first mover can
maintain their business due to their customer loyalty .Pizza Hut also being the first mover
to create sit-down restaurant concept and become the first restaurant that offer delivery
services . Aggressive marketing strategies that Pizza Hut used give impact to our daily life
which is we can remember that Pizza Hut delivery contact number .That is the power to
be first mover .People always remember about our brand and that is why ,if we want to
eat pizza`s ,we will prefer Pizza Hut .

3.3 How to enter

Pizza Hut mode of entry into international market is through wholly owned subsidiary and
franchising .Pizza Hut is a wholly owned subsidiary of Yum! Brands, the world largest fast
food restaurant company in terms of system unit .Yum! is the company that operates and
give licenses to Pizza Hut to operate as worldwide restaurant .This entry strategies is
allows a firm to speed up market penetration and can control the resources .In Pizza Hut
company ,this firm use franchising to entry into international market .Pizza Hut start to
open new branch of franchising on 1959 in Topeka ,Kansas . The franchiser will help local
firms with business by providing training the workers, supply in the setting up of
restaurants and equipment. The franchiser strictly controls the business system to
guarantee the customer a constant and consistent experience of the product quality.
"Pizza Hut franchise is part of YUM! Brands and to be considered for a Pizza Hut
franchise you will need to have $360,000 in cash and must pay royalty fee of 6.5% per
month based on monthly profit . The uniqueness of Pizza Hut is their sets itself apart from
a lot of its competitors because it allows Franchisee's independence in deciding some of
the items they will carry on their menus such asbeing free to use different kinds of
toppings from different suppliers. While there are differences in ingredients, the basic
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elements in each pizza are the same. This allows consumers to get the familiar taste they
love, but also allows franchise owners to branch out.

4.0 Different Cultures Environment

During the positive expansion of Pizza Hut, there are many problems faced by them that
are to adapt Pizza Huts menu and services to the local demands as well as the way of
managing people cross-culturally. Pizza Hut worked hard in order to meet the satisfaction
of their customer in different countries. There are two specified culture environment
problem faced by Pizza Hut, it is internal and external. But in these cases, is more focus
on the external factors. External factors means, all the factors that not related to the
management in the company. External also is the global worldwide range, so it could be
anything that is related to the business of the company from up to toe. Here, we classified
the differences of Pizza Hut based on the different countries.
4.1 Malaysia
Cerebos is a Singapore based-company and was the first owner of the Pizza Hut in
Malaysia. Pizza Hut began its operation in Malaysia on 19th May 1982 with the opening
of its first outlet at Yow Chuan Plaza, Kuala Lumpur. Cerebos had opened 29 outlets and
decided to sell the franchise to KFC Holdings Malaysia Berhad in December 1995. The
number of Pizza Hut outlets since then has grown to 72 outlets today. Pizza Hut is
projected to grow at a planned average rate of 10 new outlets per annum for the next 3
years. The specialty of the Pizza Hut in Malaysia is not only open at the urban areas, but
it also opened at the rural areas based on the demand.

As we know, Malaysia is the country that use Islam as the official religion and Pizza Hut
that operates in Malaysia are strictly not serve non-halal foods and also do not serve
alcoholic drinks. By using this policy, Pizza Hut are able to attract customer to come to
their restaurants mostly Malay. Pizza Hut in Malaysia need to apply Halal certificates
from JAKIM in order to operate their business to all citizens. In terms of menu, Pizza Hut
are try to adapt all the ethnics, custom and traditional foods in order to produce the most
attractive and delicious pizza in Malaysia. For example, Pizza Hut has an experienced in
produce 3D Triple Chicken Sensation Pizza. It consist of the Malay traditional foods, it is
delightful Chicken Loaf, Succulent Chicken Salami and Fluffy Chicken floss. Instead of
trying to produce pizza by following the Malaysia cultures, Pizza Hut also serve variety of
menu, for example pasta , desserts and drinks. In addition, different countries will also
produce different pizza and its only available at that specific countries. For example in
Malaysia have Golden Fortune Cheesy Crown Pizza and Mexican Fiesta Pan Pizza. In
Malaysia Pizza Hut already combine the Pizza Hut's Stuffed Crust Pizza and Signature
pizza, called is as Super Pan Pizza. Pizza Hut in Malaysia also creates the package like
Sensasi Delights, Combo Meals and the latest one is Smart Lunch.
In terms of promotional, there are many types of promotion that Pizza Hut use. For
Malaysia, Pizza Hut more success in attracting people from television commercial. The
commercial that Pizza Hut done, have give a big impact because the study shows that
sitting watching television together with family is one the culture in Malaysia. As we know
the largest competitor of Pizza Hut are Dominos and Dominos promotions are less than
Pizza Hut. Pizza Hut used two languages in their Restaurant services and Commercial in
Malaysia. This because Malay is the official language in Malaysia, meanwhile English
also been used as second language in Malaysia.
Next, the different between Pizza Hut in Malaysia from other countries are delivery
service that Pizza Hut provided. PHD Delivery Sdn Bhd ("PHD) acknowledges and
respects the privacy of individuals. This policy will reduce customer time in ordering the
pizza. This policy also covers all the personal information that PHD hold and sets out the
way in which PHD will use, manage and protect personal information when customer visit
any of Pizza Hut websites or stores. Pizza Hut guarantee 30 minutes or less delivery or
get a pizza on Pizza Hut for free and no delivery charge and all prices are nett.
Meanwhile, Dominos policies are if the delivery late, the customer will receive money off
voucher pizza. In Malaysia have two types of delivery. Firstly, customer can come to the
restaurant make and order and take away. Secondly, customer can order through
telephone or order online and the delivery man will send the pizza straight to the

10

customer house within the time required. The official vehicle for the delivery man at Pizza
Hut is the motorcycle.
4.2 India
Pizza Hut in India was opened in 1996; its brought in India its international heritage, its
pizza expertise and world class standards of quality and taste. The pizza is a food foreign
to the Indian palate; this is small feat by looking it as successful brand today.
India is one of the countries in the world that operates only 100 per cent vegetarians
Pizza hut Restaurants. It located I Ahmedabad, Surat and Mumbais Chowpatty, and a
special Jain menu sans root-based ingredient are again a reflection of the adaption to
local preferences. Root-based pizzas do not contain onion and garlic. Instead of garlic
bread, special Jain bread is served. Moreover, dressings on India salad are completely
egg-less. Pizza hut in India created Indian topping and vegetarian pizzas. The most
favorite of flavors in India is Chicken Tikka, Spicy Korma and The Tandoori range. As we
know, in Indians religion they are not allowed to eat meat or beef. But instead of operate
business with fully vegetarian foods; Pizza Hut in India also put some menu for nonvegetarians. The pan pizzas in India start at just Rs 65, which is probably among the
lowest price in the world. The recent Pan 4 All initiatives are also an example of good
value of money. Pizza Hut in India also served side meals such as pasta masti, desserts,
soup and salads and beverages. The difference with Pizza Hut in Malaysia, Pizza hut in
India is allowed to serve alcoholic drinks such as margarita. The special about pizza in
India they serve most tasty pizza it is new Crown Pizza or could be name as The King of
The Pizzas. It contains 12 tastes of juicy vegetarian or chicken kebabs and creamy hot
paper sauce.
Meanwhile the Pizza Hut in India required languages for job application are English and
Kannada. In India, foreigner is everywhere and they believe that in order to make the
communications process run smoothly between workers at Pizza Hut in India, they must
know how to speak in English instead of using their own language.
The advertising or Promotion strategies for Pizza Hut in India are divided in to two-fold.
Firstly, by laying emphasis in India and being International brand with an Indian heart. For
example by creating the pizzas and side dishes by follow the Indian cuisines. Pizza Huts
communication is reflective of family values and family bonding. Secondly, highlighting the
idea that the pizza is a medium that brings people together ensures that this is a brand
that helps to connects with Indian consumer.

11

In terms of delivery, Pizza Hut in India still using the same concept of Home country
concepts it is by using Pizza Hut Delivery services (PHD). This service is offers great
quality pizzas, pastas, desserts and beverages delivered to your doorstep. PHD is now
present in over 40 cities in India. Instead of ordering pizza through the phone call,
customer also can order through online. Just click the website, register or log in and
order. It can be done so easily and can reduce time. The benefit of doing this online
ordering is can reduce the mistaken order taken by the staff because customer will
choose the menu by their own. In India, delivery boy basically are using scooter to deliver
the pizza to the customer house, and the policy late received are still remain unchanged
customer will received free pizza when the delivery late about 30 minutes and above.

4.3 China
The first Pizza Hut was opened in 1990 at Beijing, Pizza Hut has been in China more
than 50 city opened 187 Chain store, more than 10000 employees. Among them, the East
China market has 69 stores, located in 15 cities. In late May 2004, China Yum has
announced about the domestic more than 130 Pizza Hut stores management in China
has been fully recovered. In China they called a business management of Pizza Hut,
Tricon Global Restaurants as Yum. Pizza Hut in China region general manager explained
that Pizza Hut later, will not adopt franchise business model, but for the headquarters
management and business expansion China will still refer to the Yum. Some says that
Yum are already ended the contract with the The Jardine group because of they are not
satisfied with the rate of expansion that The Jardine group has done. But based on the
analysis, the management made by The Jardine group about franchise mode cannot
complete the mission yum.
Pizza hut has yet to achieve economies of scale and the franchise's door not closed
permanently, stopping agent, is consideration to depend on Yum strongly and beverage
industry experience, to make the brand do greatly strong.
In terms of Menu of Pizza hut in China, Pizza Hut introduced a series of Chinese food
products. With this, they hope that through the broad and profound Chinese food culture
and pizza are integrated with each other to meet Chinese taste. Pizza Hut and more on
atmosphere, dim light streamed down, reflected in the attached to the walls of the
abstract painting, forming a circle of ambiguous image, giving a hazy warmth, like a
12

painting of the evening in a terrible coincidence: only a piece of pizza distance, food and
cultural encounter. They provide three kind of services in China including Full Service
Restaurants (Pizza hut canteens), Home Service Restaurants (Pizza hut delivery), and
Restaurant Based Delivery (Pizza hut express). Pizza Hut was the first restaurant chain
to introduce pizza and Western-style casual dining to China in 1990. Pizza Hut in China
also has made the transition from Western-style casual dining expert", to the introduction
of French treasure progenitors new wine. More than 30 Pizza Hut Happy Restaurant in
China was first introduced the taste of France Bao progenitors new wine. Pizza Hut also
offers three-course gourmet meals at a pretty penny. Customer can find on the menu:
seafood (including: oysters, snails, and shrimp), salads, soups, steaks (beef, lamb and
pork) and all kinds of desserts. The menu in China is quite different from others countries
because they want to adapt the culture from China into the taste of the foods. To get halal
foods in China is not easy because they also served pork and alcoholic drinks in Pizza
Hut restaurants. Pizza Hut now, is the number one casual dining brand in China with
more than 700 restaurants in 120 cities.
China is one of the countries that have technological advances rapidly; in the terms of
promotion China is one of the countries that have a many ways itself in order to promote
the pizza. First by producing a new product, Pizza Hut offer new product for each period,
it always change major dishes in each period of time, and other supporting dishes or
something like that. This promotion strategy can make customers think that Pizza Hut is
in fashion and fresh. Recently, Pizza Hut release a new serious pizza and dishes called
Mythic Harem Its including Harem Sweetie and Magic Apple Tea.
In China Pizza Hut also introduced the thematic series pizza. Such as Universal Fund
Surprising, Trend Exotic Trip and China Featured Although these pizzas have a little
different from each other, for the customer, they are still the new ones. So with this
strategy, Pizza Hut has broadened its market. China belief in their culture, language and
ethnic are very strong, and websites for Pizza Hut in China are fully in their language.
This is one of the ways, how China attracts their customer. Besides that, China also using
a full Chinese language in order to promote their new brand of pizza to the customer in
the television commercials. For example, there are televisions commercial about Chinese
New Year and they want to promote spaghetti so, they use China official language as a
medium to communicate.
Pizza Hut in China also still using the same concept from the Home country for their
customer o make an order for the delivery. Customer can order online or can order
through phone call. Things that make Pizza Hut in China different than others is, Pizza
Hut in China send the delivery by using the electric bicycles for the nearest place and
13

using bike for the place that quite far. Pizza Hut in China wants to maintain the concept of
faster delivery of their pizza by Using this bicycles. As we know, the big urban cities in
China are very busy. Thus, with the using of bicycles can accelerate delivery time and
reduce costs. Example of the city that using these bicycles as a transport are Shanghai,
Beijing, Guangzhou, Shenzhen and the whole Zhejiang province.

5.0 Conclusion
Pizza Hut operations are recording very strong sales growth. In Malaysia, K&N
Kenanga Research, an investment analyst company revealed the future plan for Pizza
Hut, The KFC Management had indicated that they would be concentrating on growing
Pizza Hut (The Star, 2000). Pizza Huts sales have been rising rapidly from RM52millions
recorded in 1996 to RM100millions in 1999. SWOT analysis has been performed by Pizza
Hut to achieve the goals there is Strengths, Weaknesses, Opportunities, and Threats.
5.1 Strengths
Pizza Hut is a worlds largest restaurant chain that they dominate their market. They have
over 20,000 franchises around the world and the brand leader in the United Kingdom.
Pizza Hut specialized in pizza and their products have been voted number one in
countless consumer surveys nationwide. They have low competition but Dominos is the
fierce competitor to them. This is because both of them in the same sector and generate
same products in the market. Pizza Hut strength also sound financial situation and
international turnover. Pizza Hut is the famous television advertising and the food attracts
various ranges of people from young to old. They also have a huge segment that
attracting more customers meaning a higher percentage in sales is which may lead to
greater profits. Pizza Hut sits on top of global full-service restaurant tree. They have a full
service restaurant as well as delivery services.
5.2 Weaknesses
However, the weaknesses of Pizza Hut are declining in customer satisfaction of the
pizza that felt by loyal customers. Because of that, may lead to customers switch to main
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competitors such as Dominos Pizza due to low customer satisfaction and a reduction in
customers. The credibility in market also low because of declining in customer
satisfaction. Pizza Hut in New Zealand and Australia face and battle with problem
although Novak said Pizza Hut expansion into China is going exceedingly well.
Therefore, mean they are losing money in places such as New Zealand and Australia that
could be due to their culture and lifestyle. So, Pizza Hut need to introduce more variety
range of products to attract customers based on their cultures and lifestyles. Besides that,
Pizza Huts have a complex computer systems and internal conflicts from franchisees that
leads to the motivation of staff. They also lowering the quality of products, services to
customer and could lead to a lack of new ideas.

5.3 Opportunities
Pizza Hut can attract new customers by introducing new pizzas with different crust
sizes and flavours. The new tastes of pizzas will grab more new customer that may
increase their sales. For example in Malaysia, Pizza with Rendang topping or Satay
topping. In addition, Pizza Hut has expanded into the Indian market menu and looks to
the olds favourite to increase sales in the United States. They also can come up with the
new products considering the Eastern taste of the people and diversification of new
products that can increase their market share. They has targeted upscale products and
downscale consumer base that will attract customers who are willing to buy these pizzas.
5.4 Threats
The most threat for Pizza Hut is the competitors. Dominos Pizza is the strong and
fierce competitor to Pizza Hut because their main competitive advantage over Pizza Hut
is their lower price. McDonald also has tried to introduce a new meal that is a pizza called
McPizza. In order to compete with Dominos Pizza, McDonald or others competitor, Pizza
Hut need to improve or maintain the quality of the pizzas to ensure that Pizza Hut
dominate this market. As consumers go for greater convenience it rising competition
undermines Pizza Hut. The sales will go to smaller companies who are charging less will
lower the amount of sales consumed by Pizza Hut. Cheese is really important and the
main ingredient to make the pizzas. So, rising cheese costs threaten margins that tend to
Pizza Hut eventually buying goods from abroad or buying cheaper products that not
quality.

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6.0 Bibliography
Pizza Hut
International.
http://www.pizzahut.com/

(2012).

Retrieved

Pizza
Hut
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http://www.pizzahut.com.cn/phdi/index.aspx

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12,
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2012,
2012,

from
from

Pizza Hut India. (2012). Retrieved December 15, 2012, from http://pizzahut.co.in/
Pizza
Hut
Malaysia.
(2009).
http://www.pizzahut.com.my/

Retrieved

History of
Pizza
Hut.
(2012).
Retrieved
http://en.wikipedia.org/wiki/History_of_Pizza_Hut
Yum
Brands!
(2012).
Retrieved
http://en.wikipedia.org/wiki/Yum!_Brands

December

15,

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2012,

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2012,

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Rivera.D (Date of publication). Pizza Hut Franchise History. Retrieved December 15,
2012 http://franchisewisdom.com/pizza-hut-review
Schreiner.B (2012, Oct 9). Pizza Hut, Taco Bell owner Yum's 3Q profit up 23 pct. as
China unit recovers, US demand grows. The Canadian Press, pp. 1-6.

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