CASE STUDY# 1:

Nothing Unique to Offer

During the past four months, George Vazquez has been putting together his plan for a new
venture. George wants to open a pizzeria near the local university. The area has three pizza
enterprises, but George is convinced that the demand is sufficient to support the fourth.
The major competitor is a large national franchise unit that in addition to its regular food –
service menu of pizzas, salads, soft drinks, and desserts- offers door to door delivery. This
delivery service is very popular with the university students and has helped the franchise unit
capture approximately 40 percent of the student market. The second competitor is a “pizza
wagon” that carries precooked pizzas. The drier circles the university area and sells pizzas on
a first come, first served basis. The pizza wagon starts the evening with 50 pizzas of all
variables and sizes and usually sells 45 of them at full price. The last 5 are sold for whatever
they will bring. It generally takes the wagon all evening to sell the 50 pizzas, but the profit
markup is much higher than that obtained from the typical pizza sales at the franchise unit.
The other competitor offers only in-house services, but is well known for the quality of its food.
George does not believe that it is possible to offer anything unique However, he does believe
that combination of door-to door delivery and high quality, in-house service can help him with
15 to 20 percent of the local market. “Once the customers begin to realize their” pizza is
pizza”. George told his partner, “We’ll begin to get more business. After all, if there is no
difference between one pizza place and another, they might just as well eat our place”.
Before finalizing his plans, George would like to bring in one more partner. “You can never
have too much initial capital,” he said’ You never know when you’ll have unexpected
expenses.” But the individual whom George would like as a partner is reluctant to invest in the
venture.” You’re just another “me too” pizzeria and you’re not going to survive.” George hopes
he will be able to change the potential investor’s mind, but if he is not George believes he can
find someone else. “I have 90 days before I intend to open the business, and that’s more than
enough time to line up the third partner and gen the venture under way,” he told his wife
yesterday,

QUESTIONS:
1. Is there any truth to the potential investor’s comment? Is the lack of uniqueness
going to hurt George’s chances of success? Explain

The investor is correct. George does not provide any particular service to the pupils, so
they will not be drawn to his pizzas. In a time when markets are very competitive, George's
lack of originality will be fatal to his prospects of survival. For me, George did not think
prudently about her business because he only based on the offers of his competitors that
should not be the habit of a business beginner. As an entrepreneur, you need to think of a
business that is affordable and unique to other business, so that you can stand out in the area
where you will build the business and become well-known all around the globe, it must stand
out from the crowd.
 2. If George were going to make his business venture unique, what steps might he
take? Be complete in your answer.
If George going to make his business venture unique to stand out for his business for me
as a marketing student, I think the first step is to create your business name and logo
because that is the key how your customer identifies your product and inspect his
competitors, what are the things that your competitors haven't thought about? And study your
business by S.W.O.T analysis, Strengths, Weaknesses, Opportunities, and Threats. That can
help you to stand up with your competitors. Remember that all business has a weakness as
an entrepreneur that is your job to know it and innovate it by your own business. He can
provide discounted rates, early-bird specials, monthly plans and discounts, and other
schemes and deals, in addition to offering new varieties of pizzas. In that people will be able
to recognize his business offer and will attempt to purchase it.

3. In addition to the uniqueness feature, what other critical factors is George

overlooking? Identify and describe three, and give your recommendations for what to
do about them.

Limited demand because there are already three rivals, opportunity cost of investment
and direct expenses of investment, and additional license fees are all significant issues that I
believe George overlooks.

Limited demand
 Pizza has a similar taste.
 The method of delivery is the same.
 It is the only competitor that combines the efforts of two other rivals.

Opportunity cost of investment

 Lower the price and cut into it
 Psychological Salesmanship
 Fragmented Selling

Direct expenses of investment

 Investors have refused to invest.
 Find additional financial assistance, family assistance, and venture capital investment.

I advise George to try a new product that will set him apart from the competition and make
him stand out from the crowd. That way, he won't have to worry about competing because
developing a distinctive product helps you stand out in the business world, and a business
plan and marketing strategy may also aid George's success.