Value chain analysis

Pizza hut

Pizza Hut
Pizza hut is one of the best wide spread
international fast food chain . They offer
different style of pizza as well as some side
dishes such as salads ,pasta and wings. It is
an American restaurant chain with over
6000 pizza hut restaurant in the united
states and more than 5600 store locations in
over 94 countries around the world.

WHY PIZZA HUT?

The basic marketing

strategy of the Pizza
Hut is being customer
centric providing the
best service.

VALUE CHAIN ANALYSIS

The value chain is a systematic
approach to examine the
development of competitive
advantage
Developed in 1985 by Michael
Porter in Competitive Advantage
Consists of a series of activities that
create and build customer value

VALUE CHAIN MODEL

PORTERS GENERIC VALUE
CHAIN

PORTERS GENERIC VALUE CHAIN

According to this model the activities

are divided into two broad categories:
Primary Activities- Activities
which relate directly to the actual
creation, manufacture, distribution,
and sale of a product or service to
the firms customers.
Support Activities- Economic
activities which assist the firms
primary activities.

VALUE CHAIN OF PIZZA HUT

Support Activities
Infrastructure

Human Resource
Management

Technology Development

Procurement

Funds collection
Administrative tasks
Managing employees
Training employees
Appraisals and rewards
Knowledge transfers
Freedom of thoughts
Conducting meetings
Feedback from customers
Research work
Improvising of their products
Innovation
Launch of new products
Use of IT, databases
Temperature controlled trucks
Acquiring the resources
Ingredients from local suppliers
Special ingredients From Australia

VALUE CHAIN OF PIZZA HUT

Primary Activities
Inbound Logistics

Operations
Outbound Logistics

Marketing and Sales

Service and Support

Purchasing raw materials like:

Dough
Cheese
Sauce
Fruits and vegetables
Spaghetti
Salt and pepper
Preparation of pizza base
Customization of pizza
Make pastas and salads
On time delivery
Transporting pizza bases
Serving pizzas hot
Segmentation
Target Market
Branding
Redefining its menu
Introduction of new products
Pricing
Distribution
Advertising
Promotional offers
Customer feels comfortable
Online orders
Home Delivery

PERFORMING THE ANALYSIS

There are two different approaches

on how to perform the analysis,
which depends on what type of
competitive advantage a company
wants to create:
COST
DIFFERENTIATION

PERFORMING THE ANALYSIS: STEPS

COST ADVANTAGE
Organizations try to compete on costs.

STEP 1 : Identify Primary Support activities

STEP 2 : Establish relative importance of
each activity
in Total Cost of Product
STEP 3 : Identify Cost Drivers for each
activity
STEP 4 : Identify links between activities
STEP 5 : Identify opportunities for reducing
costs.

PERFORMING THE ANALYSIS: STEPS

DIFFERENTIATION ADVANTAGE
Strive to create superior products & services

STEP 1 : Identify customers value creating activities

STEP 2 : Evaluate differentiation strategies for
improving customer value
STEP 3 : Identify the best sustainable differentiation

THANK YOU

Aishwarya Barve
Aman Jain
Bhakti Manwani
Digvijay Singh Baghel
Jagpreet Kaur Pannu
Puja Singh