Submission date 15th

November 2020

SWOT ANALYSIS
OF PIZZA HUT
INC.
GROUP MEMBERS
P.KW.U.T.J. BANDARANAYA KAADBM202P-018
H.M.H.I. DISSANAYAKE KAADBM202P-012
M.D.M.K.N.B. DISSANAYAKE KAADBM202P016
A.I.A.K. ATHUGALA KAADBM202P017

MANAGEMENT PROCESS AND PRACTICES | NIBM |

ADBM20.2P/KD
GROUP D
Table of Contents
INTRODUCTION TO THE ORGANIZATION ........................................................................................ 3
Inception in Sri Lanka .......................................................................................................................... 3
HISTORY OF PIZZA HUT ................................................................................................................ 4
SWOT Analysis .......................................................................................................................................... 6
SWOT -analysis of Pizza Hut ................................................................................................................. 7
Strengths ............................................................................................................................................. 7
Weakness ............................................................................................................................................ 8
Opportunities ...................................................................................................................................... 8
Threats ................................................................................................................................................ 8
Discussion on facing the threats ............................................................................................................... 10
Conclusion ................................................................................................................................................ 12
Bibliography .............................................................................................................................................. 14
INTRODUCTION TO THE ORGANIZATION
Pizza hut is the largest multinational restaurant brand by number of outlets and the market share
percentage for the dish named Pizza. Currently there are many pizza brands available in the world,
but this brand is the iconic signature for pan pizza.

Inception in Sri Lanka

Pizza Hut Sri Lanka, since the beginning in 1993 has become a household name across the country.
Union place, Colombo 2 restaurant is the first Pizza Hut restaurant of Sri Lanka at with that they
have become the very first international restaurant chain which starts operations in Sri Lanka.

1999 was the year Pizza Hut began its home delivery service in Sri Lanka and currently they are
providing island wide delivery service which kept around 50% of their net sales.

Pizza Hut Sri Lanka, employed over 1800 both local and foreign people up to date and creating
new job opportunities daily.

In the globe level Pizza Hut employed around 350000 people and they currently operating in 18703
outlets in 100 countries.

Figure 1
HISTORY OF PIZZA HUT
This business Originate in Wichita, Kansas on 31st May 1958 by two brothers named Dan and
Frank Carney who were studied at Wichita State University. Carny brothers borrowed $600 from
their mother to start this business and they rented a small building and purchased secondhand
equipment to make pizzas.

Figure 2

Within the first year of its opening this business Prove successful and it leads Dick Hassur to open
the very first franchise unit in Topeka, Kansas. Seven years later its franchise network had grown
to 145 units and two years later they Starts operations in Canada by opening the very first
international franchise unit there. In 1970 it opened new units in Munich city Germany and Sydney
Australia.

Pizza Hut became world’s largest pizza chain in 1971 by its sales and number of outlets.

Pizza Hut merged with pepcico, Inc. In 1977 and it helped to reach $436 million sales in that year.
Pizza Hut introduced a thicker crust made in deep pans in 1980 by the name of pan pizza. In 1983
Personal pan pizza was introduced by offering quick and steaming hot five minute guaranteed
single serving pizzas. They also added Hand tossed traditional pizzas to the menu in 1988.
Mr. Steve Reinemund was appointed as chief executive officer of Pizza Hut in 1984 and under his
management Pizza Hut started home delivery service. It helped to grown approximately 25% of
its total sales by 1990.

In early 1990s drive through units and Pizza Hut Express units were being developed to make it
more accessible and also provided fast food at more affordable rates. In 1996 Pizza Hut planned
to launch at least a new major product to the market each year and also two or three line extensions.

Figure 3

(Pizza Hut Inc. - Company Profile, Information, Business Description, History, Background
Information on Pizza Hut Inc., n.d.)

(Pizza Hut, n.d.)

(OUR STORY, n.d.)

(About Pizza Hut, n.d.)

SWOT Analysis

Figure 4

The definition of SWOT analysis is Strength, Weakness, Opportunities, and threats. Strength and
weakness are the internal factors whereas the opportunities and threat are the external factors.
SWOT analysis is a famous tool and is a strategic planning method used for analyzes the strategy
of a business, products in its environment. It is a method used to define the strength, weakness,
opportunities and threats that are involved in a business. There are many competitors in the market
therefore SWOT analysis is a useful tool that can identify and analyze.

Strengths are the power that able makes a product or a business accomplishes the mission. This
can be continuing success with the power of the qualities. Strength is the beneficial aspects in
services or in an organization.

Weakness are also internal factors that avoid from accomplish the mission or achieves the goal. It
will affect the product or the business market growth. It also an Aspects that not meet the qualities
or standards of the consumers or in the market segment.

Opportunities are external factors that the organization or products have wide range of
improvement. The benefits are in its surrounding or the environment strategies able to become
more profitable or wide market range.
Threats are also external factors means the external environment. It Affect the sustainability and
profitability of the product or and organizations business. Every business or products have to be
alert with the threats.

SWOT -analysis of Pizza Hut

The SWOT analysis of Pizza Hut is based on both products and service.

Strengths
 Pizza Hut are well known all over the world and specialize in pizzas.
 Pizza Hut doesn’t have any pizza’s competitors and they face very low competition in the
market.
 It is the leading brands of the pizza.
 It located in every country and have their own outlet and store.
 It is a place suitable for family dining as well as individuals for reasonable price.
 Pizza Hut has their own full service restaurant and delivery services compare to others Fast
Food Company.
 Also have a large market share and strong network.
 Pizza Hut also has a strong advertisement and many media help to attract people.
 Pizza hut have many flavor of the pizza unique to various countries and seasons.

Figure 5
Weakness
 Communication skills between worker and customer are bad
 Customer service are not meet customer expectations
 Food is not fresh enough when it is not hot
 Need to wait very long to be served even is wait to be seated or take order from customer
 Pizza not delivered on time
 Loyal customer is declining because of the satisfaction of the pizza
 Packing do not meet customer expectations
 The menu is complicated because there are not only pizzas but other variety of foods.
 Pizza hut delivery have charges but other competitor don’t have
 Pizza Hut face higher overhead of costs to deal with while other competitors don’t have to

Opportunities
 Although they have many outlets around the world but they can explore a new market and
gain opportunities
 Pizza Hut should create different flavor and different crust size
 New product development can increase their market share
 Can create new pizza shapes other than the oval shape
 Pizza hut can focus on eastern taste because there are more focus on western taste

Threats
 There are many pizza Competitor in the market
 Domino pizza is the large competitors to Pizza Hut because they provide a good and
efficient delivery.
 Cheese cost are increasing therefore the price of pizza will increase too
 Under independent restaurant can influence pizza hut market share because there are sell
pizza with lower price
 Location is an important thing because not every location have the potential customer to
afford the meal
 Menus and procedures of processing pizza available in social media and threat born from
homemade pizza
 Ingredients used in pizza also available in every super market

Figure 6
Discussion on facing the threats
The threat from competition can decline the market share. For Pizza Hut Domino’s pizza is the
major competitor it Present in most places where pizza hut not exist. McDonald’s, KFC, and other
instant food makers also another competitor’s for pizza hut. Competitors’ advertisements were
more attractive than pizza hut, using social media, multimedia, and others improve market share
of competitors. Most of them advertise family dining, party planning, and team gathering at their
service places. KFC have kids playing sections and they encourage kids to celebrate their birthdays
at KFC.

Most of competitors promote their products by offering seasonal discounts and intimate it through
network, such as sending SMS, making telephone call to customers. They have variety of foods
which meet variety of customer expectations. Also have various flavors which meet many
traditional requirements of nationals in all over the world. Pizza hut serves a wide range of foods
but do not meet expectations of vegetarian customers. They have to plan more things such as
vegetable pizza, vegetable pastas and rice to attract vegetarian customers.

Health conscious people avoiding pizzas, constant vigilance of food regulatory, Health sector
advices also effected pizza hut. Serve nutritious foods and advertise them through social media,
multimedia and other e channels will be an advantage to attract health conscious people.

The price of pizza high due to rising prices of ingredients used in pizza, therefore only selected
category of customers with pizza hut. Adding non-financial values such as best customer service,
attractive premises, and informing that pizza hut is the most suitable dine place for all type of
people. Advertising that pizza hut more interesting for family dining, gathering, meeting and for
parties can be get the attention of un captured people.

The pizza hut based on both products and services. Maintaining a satisfactory customer service is
a challenge to pizza hut. Poor communication between worker and customer, waiting long time to
be served, not delivered in time caused decline customer satisfaction.

They have to plan more things such as promotion, advertisement to attract more customers and
improve the service in the restaurant. Besides that’s maintaining a best customer relationship, focus
on customer expectations can improve market share. In addition, the deliveries services have to on
time and make sure the food are still hot for customers.
Train pizza hut staff for customer orientation services and encourage staff by rewording will be an
important factor to enhance the market share of pizza hut. Maintaining a customer data base and
complain center, get feedback from customers is very important for a service based industry.

Using SWOT analyze pizza hut can study threats they have to face and enhance the market share
by using strengths and opportunities they have. Reducing weaknesses also important to overcome
threats pizza hut exist.
Conclusion

SWOT analysis can be used to analyze the internal and external factors of an organization. Pizza
Hut has wide range to improve because nowadays people are with high expectations.

As a conclusion, Pizza Hut is a great business in handling their profitability. Pizza Hut is the
biggest pizza restaurant organization in the globe concurring of both the number of outlets and the
calculation of market share that it has.

Pizza Hut company has an extraordinary interest on the lookout. There are numerous elements that
influence interest of Pizza Hut. To be specific, cost of other goods (substitute), customer
preferences, customer tastes and consumer income. Cost of other things affects demand of Pizza
Hut. Consumer will find other alternate if price of pizza in Pizza Hut increases. Thus demand of
Pizza hut decreases. Next customer choice and tastes also affect demand of Pizza Hut. If Pizza Hut
couldn't satisfy consumer tastes, the demand of pizza Hut will drop as consumer will find other
alternative that satisfy them. Next factors that affect demand of Pizza Hut is consumer income.
When consumer income increase, the demand for Pizza Hut will also increases. Taxation also
affects demand of Pizza Hut. The higher the taxes that charged in Pizza Hut, the lower the
purchasing power of consumer. Thus this decreases the demand for Pizza Hut.

Pizza Hut will in general have a flexible interest happen when there is a little change in level of
price of an item will prompt a bigger rate change in total demanded. As determine, buyer won’t
burn – through pizza hut if the cost increments. Shopper will attempt to locate another other option.
Accordingly, it increases demand of pizza hut.

It is obviously indicated that from the review that Pizza Hut has numerous dependable customers.
This is proved when the survey shows that customer happiness is at the good parameter for quality,
price, store, climate and service. This additionally can be demonstrated when 11 out of 14
individuals concur that eating Pizza Hut is value for money. The recommendations we can provide
to Pizza Hut in improving their services are to include new dishes to their menu so that customers
would have more new choices to choose. Pizza Hut also should regularly make a discount such as
by creating a combo meals and giving discount vouchers.
Table of figures
Figure 1 ....................................................................................................................................................... 3
Figure 2 ....................................................................................................................................................... 4
Figure 3 ....................................................................................................................................................... 5
Figure 4 ....................................................................................................................................................... 6
Figure 5 ....................................................................................................................................................... 7
Figure 6 ....................................................................................................................................................... 9
Bibliography
About Pizza Hut. (n.d.). Retrieved from pizzahut.lk: https://www.pizzahut.lk/home/about

OUR STORY. (n.d.). Retrieved from blog.pizzahut: http://blog.pizzahut.com/our-story/

Pizza Hut. (n.d.). Retrieved from wikipedia: https://en.wikipedia.org/wiki/Pizza_Hut

Pizza Hut Inc. - Company Profile, Information, Business Description, History, Background Information on
Pizza Hut Inc. (n.d.). Retrieved from referenceforbusiness:
https://www.referenceforbusiness.com/history2/23/Pizza-Hut-Inc.html