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Pizza hut Value chain analysisPizza HutPizza 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 ANALYSISThe value chain is a systematic approach to examine the development of competitive advantageDeveloped in 1985 by Michael Porter in Competitive AdvantageConsists of a series of activities that create and build customer valueVALUE CHAIN MODEL

PORTERS GENERIC VALUE CHAINPORTERS GENERIC VALUE CHAINAccording 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 HUTSupport ActivitiesInfrastructureFunds collectionAdministrative tasksHuman Resource ManagementManaging employeesTraining employeesAppraisals and rewardsKnowledge transfersFreedom of thoughtsConducting meetingsTechnology DevelopmentFeedback from customersResearch work Improvising of their productsInnovationLaunch of new productsUse of IT, databasesTemperature controlled trucksProcurementAcquiring the resourcesIngredients from local suppliersSpecial ingredients From AustraliaVALUE CHAIN OF PIZZA HUTPrimary ActivitiesInbound LogisticsPurchasing raw materials like:DoughCheeseSauceFruits and vegetablesSpaghettiSalt and pepperOperationsPreparation of pizza baseCustomization of pizzaMake pastas and saladsOn time deliveryOutbound LogisticsTransporting pizza basesServing pizzas hotMarketing and SalesSegmentationTarget MarketBrandingRedefining its menuIntroduction of new productsPricingDistributionAdvertisingPromotional offersService and SupportCustomer feels comfortableOnline ordersHome DeliveryPERFORMING THE ANALYSISThere are two different approaches on how to perform the analysis, which depends on what type of competitive advantage a company wants to create:COSTDIFFERENTIATIONPERFORMING THE ANALYSIS: STEPSCOST ADVANTAGEOrganizations try to compete on costs.STEP 1 : Identify Primary Support activitiesSTEP 2 : Establish relative importance of each activity in Total Cost of ProductSTEP 3 : Identify Cost Drivers for each activitySTEP 4 : Identify links between activitiesSTEP 5 : Identify opportunities for reducing costs.

PERFORMING THE ANALYSIS: STEPSDIFFERENTIATION ADVANTAGEStrive to create superior products & servicesSTEP 1 : Identify customers value creating activitiesSTEP 2 : Evaluate differentiation strategies for improving customer valueSTEP 3 : Identify the best sustainable differentiationTHANK YOU

Aishwarya BarveAman JainBhakti ManwaniDigvijay Singh BaghelJagpreet Kaur PannuPuja Singh