Competition

Competitors

Pizza hut faces a stiff competition in India .Its major competitor has been Dominos. The other competitors are U.S Pizza, Smokin Joe’s, Papa John’s and the local city pizza shops. It faces both direct and indirect competition .In direct competition all the above mentioned pizza centric competitors can be taken into count. Since pizza hut belongs to the fast food sector, it competes’ with the other fast food chains like KFC, MC Donalds etc. So, they become the indirect competition.

Porters Five Forces

According to the five forces model , there are five major elements that effect the company .They are the Industry competitors , substitutes , suppliers , buyers and new entrants . For pizza hut, the industry rivalry the existing rivalry between dominos, pizza hut, U.S pizza, and the others is high. It has to sustain the competition .Coming to the next force, the new entrants. Since there are new international companies investing in India, there are chances of the other international companies to enter the Indian market. There are mat be substitutes like easy to make home pizzas etc , which might affect the pizzas business . Customers might prefer them instead of pizza hut. And if the buyers have ore bargaining power , that would be a threat to pizza hut. For example, if there are is more choice for the customer in pizza , the customer would be very picky and lot of effort has to put in to pull the customers to  pizza hut .