Introduction to Bussiness & Management

4P' s
Pizza
Lecturer: Bui Minh Trang

Presented: Group 2
 Introduction to Bussiness & Management

Team Members

Nguyễn Hoài Nguyễn Thị Dương Quốc Thái Thị Thảo

Lê Thị Thủy
Ngân Thanh Thúy Thái Nguyên
22080010 22080032 20010072 ID
22050014

GROUP 2
 Contents

01 03 05
Rivalry Among Determinants of Threat of Substitute
Existing Firms Buyer Power Products
02 04
Determinants of Threat of
Supplier Power New Entrants
Introduction to Bussiness & Management

Pizza 4P’s
Pizza 4P's is a chain of Japanese pizza
restaurants that operates in the F&B industry.

4P's: Platform of Personal Pizza for Peace.

Introduction to Bussiness & Management

Rivalry Among Existing Firms

Number of
01 competitors
of Pizza 4P's

Relative size
02 competitors
 Introduction to Bussiness & Management

Number of competitors
of Pizza 4P's Pizza Hut

In Vietnam, Pizza 4P's has many competitors in the

pizza industry.

Pizza 4P's focuses on using quality locally sourced

ingredients and its commitment to sustainability.

Herb Garden Farm 4Ps

Domino's Pizza
 Introduction to Bussiness & Management

Relative size of
competitors
 Pizza 4P's
Number of Locations 39 locations
A reputable and preferred choice for
pizza lovers, especially among
younger demographics and those who
Brand Recognition
value quality over affordability in
Vietnam, Cambodia, and Japan.
Pizza 4P's revenue in 2022
reached more than 50 million
USD, which is a significant
increase of 86% compared to
Financial Performance
2021.
Their profits in 2022 exceeded
pre-pandemic levels.
Pizza Hut
over 90 locations
"Most Trusted Food Service
Brand" in India and has a high
level of brand awareness in the
US, with 95% of restaurant chain
customers being aware of the
brand.
Partnerships with Pepsi.
Pizza Hut's revenue is estimated
to be around 12 billion USD
annually with nearly 7000
locations in the US.
Its revenue has seen a decline
since 2012, when it peaked at
13.6 billion USD.
Domino's Pizza
over 50 locations
No. 1 pizza delivery company
in the US.
Operates in over 90
international markets with a
network exceeding 20,000
stores worldwide.
2022, Domino's Pizza reported
sales of over $7 billion with
about 6000 units in the US,
making it the largest pizza chain
based on global retail sales.
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Determinants
of supplier
power
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Supplier concentration:
Pizza 4P's works with multiple suppliers for key ingredients like flour, tomato sauce,
cheese, and meat, reducing the dominance of any single supplier.

Availability of substitute inputs:

While common ingredients like flour or tomatoes have numerous suppliers,
specialty ingredients may have limited options, potentially giving suppliers more
leverage.

Importance of suppliers' input to buyer:

The quality and consistency of ingredients are crucial to Pizza 4P's products,
giving suppliers significant importance in negotiations.

Suppliers' product differentiation:

Suppliers offering unique or specialized ingredients may wield more power,
especially if those ingredients are integral to Pizza 4P's brand identity.
Introduction to Bussiness & Management

Importance of industry to suppliers:

If the pizza industry represents a significant portion of a supplier's business, they may
have more power in negotiations with Pizza 4P's.

Buyer's switching cost to other inputs:

High switching costs for Pizza 4P's when changing suppliers could give suppliers
more negotiating power.

Suppliers' threat of forward integration:

Suppliers with the capability and resources to forward integrate into the pizza
business may exert more influence over Pizza 4P's.

Buyer threat of backward integration:

Pizza 4P's could potentially reduce the power of existing suppliers by backward
integrating into the supply chain, although this would require significant investment
and expertise.
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Determinants of
Buyer Power for
Pizza 4P's
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Number of customers vs. number of suppliers:

If the number of customers > the number of pizza suppliers in a particular area, the customers will have an
advantage and can influence prices and conditions.

Product differentiation:
If Pizza 4P's has unique product characteristics, good quality, and is different from other pizza suppliers,
customers may have higher purchasing power and will have a stronger judgment about prices and conditions.

Cost of switching to another product

If switching from Pizza 4P's to another pizza supplier requires customers to bear high costs and inconvenience,
customers will be more influenced to decide to buy and have more judgment with Pizza 4P's.

Customer profit margin:

If the customer has a low-profit margin, that is, the profit the customer earns from using Pizza 4P's products is
small, the customer may have weaker purchasing power and less money. Photography capabilities enjoy
reasonable prices and conditions.
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The use of multiple suppliers:

If customers use many different pizza suppliers, customers have many choices and the ability to switch easily, which
can reduce purchasing power and affect sales. customer purchases. Customers buy goods from Pizza 4P's.

Threat from customers integrating backward integration:

If customers can produce pizza or buy pizza from restaurants, this can increase purchasing power and influence
negotiation decisions.

Supplier threat to forward integration:

If Pizza 4P's expands its business from making pizza to providing other services such as delivery, this could reduce
the purchasing power of customers and influence the decision to negotiate reasonable prices and conditions.

Importance of the product to customers:

If pizza is an important and indispensable product for customers, customers will have higher purchasing power and
the ability to influence prices and sales conditions.

Customer Purchase Volume:

If Pizza 4P's has a large purchase volume from customers, then customers will have the ability to influence both
prices and reasonable conditions through large-scale purchases.
Introduction to Bussiness & Management

Threat
of new
entrants
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Barriers to entry
The economies of scale achieved by Pizza 4P's
reduce the feasibility for new entrants to compete Access to distribution channels may be
on the same level. limited for new entrants, as Pizza 4P's likely
has established and controlled channels.
Product differentiation, established by Pizza
4P's reputation, presents a formidable barrier for Other cost advantages such as unique
new competitors. ingredient sourcing or strong supplier
relationships reinforce barriers to entry.
Significant capital requirements for
infrastructure, equipment, and initial advertising Government policies regarding business
discourage new entries into the market. culture, food safety, and intellectual property
protection further deter new competitors.
Customer loyalty and high switching costs
mitigate the risk of customers switching to new
entrants.
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Incumbents' defense of
market share

Pizza 4P's quick and robust responses to

new entrants, whether through improved
marketing, price adjustments, or product
improvements, help it maintain market
share.

A slowing rate of industry growth may

discourage new entrants due to decreased
market attractiveness, allowing Pizza 4P's to
effectively defend its position.
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Threat of
Substitute
Products
Introduction to Bussiness & Management

Relative Price of Substitute

Substitute products priced lower than

Pizza 4P's offerings pose a significant
threat, enticing customers away from
Pizza 4P's. For instance, if fast-food or
street vendors offer cheaper alternatives,
customers may prefer those options.
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Relative Quality of Substitute

Pizza 4P's commitment to using organic

ingredients makes it stand out from other
suppliers, potentially giving it a competitive
advantage.
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Switching Costs to Buyers

Switching costs are the Taste Preference

expenses or efforts that
buyers have to incur when
Brand Loyalty
switching from one product
to another. The higher the
switching costs, the less likely
customers are to switch to
substitute products. Convenience

Price
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Thank
You