Knowledge in Strategy

Viden.io Case Study Competition

Viden.io case study solution

Viden.io

Viden.io case study solution

Strategy for sustainable growth of viden.io

Strategy for sustainable growth of viden.io

Case Submission_Viden.Io

Submission for the case study competition by Samyak andĀ Sankalp from IIM Kashipur.

Strategy for sustainable growth of viden.io

Strategy for sustainable growth of viden.io

SWOT Analysis

SWOT Analysis of Pizza Hut Strengths: a.       Brand name: It has been around for more than 50 years now and is a well-known brand. Pizza hut has a Premium positioning in customers’ mind because it was the first entrant to start pizza franchise in India. b.      Flexible and big menu: Pizza Hut has a large pizza menu providing customers with many options. Apart from pizzas, it serves a variety of food such as pasta, wings etc. c.       Sustainable advantage: Pizza Hut maintains excellent ambience in the outlets and serves high quality of food, due to which it charges higher prices. This, in turn, helps them earn good margins. d.      Sound financial situation and international turnover: It is a part of the largest restaurant chain in the world with over 20000+ franchises. Weaknesses: a.       High price: People like to eat low-cost pizzas and look for cheaper options available. b.      No presence in small cities: In order to maintain its brand image, pizza hut is losing the turnover that it can generate by being present in small towns. Opportunities: a.       Increase digital presence: Pizza Hut does not have a very strong presence on digital platforms. It should spend more on online/ social media marketing. b.      Expansion: Get into Tier II cities where it can serve more customers. Threats: a.       Too many competitors: Threat from the competition can decline the market share for Pizza Hut

Porter's Analysis Example

Porter's 5 Forces Analysis: Since Porter’s 5 Forces model covers virtually all aspects of strategy, it is one of the most powerful tools to understand company’s competitive position in the market. 1.      Intensity of existing rivalry (Very High) a.       Competitors engage in price competition:  Pizza Hut competes with some global pizza chains such as Domino’s and Papa John. They all engage in fierce price discounting and coupons to increase their sales. b.      Advertising expenditures are high and expected to grow: With such huge opportunity in the industry and high competitiveness, big global chains are spending hugely on advertising. c.       Menu differentiation: Each of these pizza chain/outlets is trying to come up with innovative menus every now and then to attract new target markets. d.      Competition from local pizza restaurants: Local pizza restaurants offer low prices and faster delivery to take competitive advantage. 2.      Threat of New Entrants (Low) a.       Major players in the industry (Dominos & Pizza Hut) have created a very strong brand loyalty. Though capital costs required to enter the industry are not very high, it’s really difficult for new entrants to compete with major players since existing firms are deterring entry by creating brand value and loyal customer base. 3.      Threat of Substitutes (Moderate) a.       There are many possible fast-food alternatives to pizza. The current trend of “healthier alternatives” to fast food also kicks in as a threat. But there will always be a certain segment of society who will only go for pizza. 4.      Bargaining Power of Customers(Moderate) a.       Customers rarely buy in volume: Every single customer is unlikely to purchase in large volume and thus contribute to a small proportion of sales. b.       Pizza customers are more sensitive to price fluctuations and hence providers have less price controlling powers. 5.      Bargaining Power of Suppliers (Low) a.       Many competitive suppliers: Raw materials for this industry are commodity products such as flour and cheese and power of suppliers is weak. b.      Vertical integration with suppliers: In order to maintain low costs and high-quality products.

Industry overview - Aviation

The aviation sector in India can be broadly divided into 2 segments based on benefits desired namely low cost (economic benefit) and full service (experiential benefit). In domestic routes two thirds of the traffic flies on Low cost carriers. There are 4 major players in the low cost segment due to which heavy pricing competition prevails in this segment. This poses an unsustainable model for some airlines while providing huge opportunities to others due to the different cost structures. The low cost segment is highly price sensitive and there is low brand loyalty. Customers may switch to other brands easily if price differentiation is huge. Also if the price differentiation is low other features come into picture. The full service carriers offer better in-flight service such as complimentary food & drinks and in-flight entertainment. Hence it is expected to charge higher than the low cost carriers. However, due to such a high price sensitivity in Indian market the price difference is low. This also reduces the expected service differentiation offered at base prices. The full service carriers offer little better service quality for normal tickets and they offer premium cabins at much higher prices. Also both low cost and full service segments can be further subdivided into international and domestic. Most low cost airlines including SpiceJet have very little presence in international routes. This is an area where SpiceJet can focus since establishing itself in International routes will lead to higher brand recognition. Profitability is significantly higher on international routes. Also brand loyalty is higher in international routes.

Bailment

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Planning the venture

Planning the venture

research on management

Research on management