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INTRODUCTION

According to Malhotra, Agarwal & Ulgado, (2003) the choice of foreign market entry strategies is a crucial part of the internationalisation process for firms. The entry mode a firm chooses for a foreign market has major influences on the extent to which the firm capitalises on market potential and on the strategic control it has over market development. These entry modes include exporting, the use of agents and distributors, contractual arrangements such as licensing and franchising, joint ventures, strategic alliances, and wholly owned foreign direct investment (FDI), including greenfield investments and mergers and acquisitions. This paper will attempt to assess each of these entry modes, analysing the advantages and disadvantages of each.

FACTORS AFFECTING MARKET ENTRY


Before assessing each market entry modes the group believe it is necessary to give a brief overview of the market selection process. Certain criteria must be examined to assess the attractiveness of the market. When assessing potential markets for entry, firms should consider all of the following factors market-related characteristics, cost-related aspects, the legal and political environments, and tariff and non-tariff barriers. (Johansson, 1997; Jeannet & Hennessey, 2004; Keegan & Schlegelmilch, 2001; Hollensen, 1998; Kotabe & Helsen, 2001)

Market Related Characteristics These characteristics relate to areas such as market size and potential, market growth, product-fit to market demands, buying power of customers, market seasons and fluctuations, and the level and quality of competition (Hollensen, 1998). Companies should evaluate these factors when deciding on which foreign markets to enter. These factors help establish the attractiveness of the market and the extent to which the companys products or services are suited to that market.

4.2 Cost-Related Aspects Jeannet & Hennessey (2004) state transportation costs, freight, and logistics are some costrelated aspects that should be considered when assessing markets. Any company wishing to enter a foreign market should consider these, as such costs are likely to vary from country to

country, thus each market must be evaluated individually in order to weigh up the costs that may be incurred upon entry.

4.3 Political/Legal Factors Johansson, (1997) argues that political risk is one of the first considerations firms take in to account when deciding on what foreign markets to enter. Jeannet & Hennessey, (2004 p.212) propose that political risk may result from in anything from limitations on the number of foreign company officials and on the amount of profits paid to the parent company, to refusal to issue a business licence. The possibility of changes in government policy is another factor that may have an impact on profitability (Keegan & Schlegelmilch, 2001).

4.4 Tariff and Non-Tariff Barriers Tariffs and duties are significant factors of the regulatory environment of foreign countries and should be evaluated by companies when assessing potential foreign markets. Non-tariff barriers include licensing regulations, packaging and labelling requirements, weight requirements, quotas, and trade control (Keegan & Schlegelmilch, 2001). The authors outline that not all of these barriers are discriminatory in that some are put in place to ensure public health and safety, however the line between social well-being and protection is a fine one (Gillespie, Jeannet and Hennessey, 2004, p.34). These together with the above mentioned tariff barriers are important factors in the evaluation of foreign markets.

The factors mentioned above represents a brief overview of the main factors that a company should consider when evaluating what markets to enter. These factors may also be useful in assessing which market entry modes to use, as for example a regulation that requires local management may encourage a firm to use franchising or joint ventures.

MARKET ENTRY MODES

5.0

EXPORTING

Exporting can take two forms, indirect and direct exporting. Indirect exporting is best suited to small firms with limited resources who have only a passing interest in exporting, while

direct exporting is a strategy used by a firm that wants to establish a greater presence in foreign markets

CONTRACTUAL AGREEMENTS Contractual agreements take the form of licensing and franchising. Licensing as a form of market entry is beat suited to a firm that wishes to participate in international marketing but do not have the resources or know-how to do so. Franchising, is a form of licensing that offers a company a chance to develop a presence in a foreign market while retaining a significant amount of control over their operation Licensing According to Johansson (1997, p.154) licensing involves offering a foreign company the rights to use the firms proprietary technology and other know-how, usually in return for a fee plus a royalty on revenues. The licensor may give the licensee the right to use the firms patent on a particular product or a process, manufacturing know-how, technical advice and assistance, marketing advice, or the use of a trademark or the companys name (Hollensen, 1998). The time periods for licences may vary, as noted by Jeannet & Hennessey (2004), depending on the level of investment required by the licensee to enter the market. As it is usually the licensee who makes all the necessary capital investments with regard to equipment, marketing expenditure etc., this party may insist on a lengthy agreement in to recover the cost of investment. Franchising Doole & Lowe (2001) state franchising is a means by which a company can market its goods and services by granting the franchisee the legal rights to use their business format. According to (Keegan & Schlegelmilch, 2000) it differs from licensing, in that there is an entire business concept transferred between parties and a greater degree of control over operations is maintained.

There are two major types of franchising outlined by (Hollensen, 1998). Firstly there is product and trade name franchising. This type of franchising involves a distribution system where suppliers agree contracts with dealers to buy or sell products or product lines. The dealer uses the trade name and trademark of the company. The second type outlined by
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Hollensen (1998) is the business format package franchising. International business format franchising is a market entry mode that involves a relationship between the entrant (the franchisor) and a host country entity, in which the former transfers, under contract, a business package (or format), which it has developed and owns, to the latter COOPERATIVE AGREEMENTS

Joint ventures and strategic alliances are two forms of cooperative agreements that may be undertaken between firms to develop a presence in a foreign market. Joint ventures are best suited to two companies with complementary products or services, thus enabling a good strategic fit. Strategic alliances may be used by a firm that have a desire to enter foreign markets but lack the ability or confidence to do it alone, thus seeking the assistance of a player in the foreign market. These will now be discussed in greater detail.

7.1 Joint Ventures A joint venture is any kind of cooperative arrangement between two or more independent companies which leads to the establishment of a third entity organisationally separate from the parent companies

To summarize this paper the group have devised a model outlining the advantages and disadvantage of each foreign market entry strategy discussed. The firms most likely to use each entry strategy are also highlighted.

Advantages Indirect Exporting Less complexities than direct exporting Less Risk Involved Readily Available Expertise

Disadvantages Loss of control over 4Ps Poor Supporting Services Little Promotion Minimal experience gained within the firm. Less Profit Potential

Best Suited To Firms getting rid of excess capacity. Small firms with limited resources.

Direct Exporting

Licensing

Greater Profit Potential Greater control over marketing mix. Closer to marketplace Closer relationship with buyers. In-house experience and knowledge gained Inexpensive way of achieving foreign market entry Licensor takes minimal risks

Franchising Quick way for company to enter foreign market Relatively Inexpensive Reasonable level of control. Profits dependent for both parties on performance of franchise May be only way of gaining access to markets Improved access to financial resources Economies of scale Access to new technologies and management practices. Can rapidly expand into new markets May offer efficient marketing and production Access to additional

High risk More time, personnel and corporate resources committed. Substantial Investment Distribution, administrative and marketing costs faced by the firm Limited participation in international markets. Licensor passes technology know how on to other party. Dependent on Licensee to exploit products potential. Lack of control over operations. Brand image at threat from poor performance from franchisee. Minimal skill and experience gained within the firm.

Firms that wish to establish a more permanent role in international markets.

Companies that wish to participate in international markets but do not have the time or capabilities to do so.

Firms with strong a brand or processes. Effective method of internationalisation for services firms.

Joint Ventures

Strategic Alliances

Significant costs JV vulnerable as it is reliant on relationship between two parties. Cultural differences prominent JV partner may become dynamic competitor. Not a separate legal entity. Reliant on positive relationship between parties involved.

Companies with complementary products and capabilities. Companies with a good fit.

Firms that recognise the necessity to internationalise but feel the need for
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sources of capital Acquisitions Swift access into market. Access to distribution channels Existing customer base High control Greenfield Access to Raw materials Operations Lowers manufacturing costs Avoids tariffs Market penetration Total control Very high costs Difficult to find suitable company for acquisition Compatibility problems with companies products. Have to establish operations from scratch Must set up distribution channels, source suppliers & distributors etc. Huge resource commitment

foreign help. Large, heavily resourced firms that can identify a suitable firm for acquisition.

Large heavily resourced firms. Firms who wish to reduce costs, particularly labour costs.

INTRODUCTION : PIZZA HUT

Pizza Restaurant was opened by two brothers Dan and Frank Carney in 1958 in Wichita, Kansas. Dan and Carney borrowed 600 Dollar from their mother to open Pizza Hut Restaurant. After borrowing 600 Dollar from their mother, they purchased second-hand equipment and rented small building in their home town. In 1959, the 3rd Pizza Hut restaurant was set up as a Franchise which they open in Topeka, Kansas. Their vision is to develop Franchise System which became a worldwide successful marketing model. Pizza Hut was first mover towards international market and set up first Pizza Hut outlets in Canada in 1968. Almost ten years later, Pizza Hut serving one million customers in a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under ticker symbol PIZ. International Pizza Hut restaurant became 100 in number while the total number of Pizza Hut reached 2000 in 1976. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. Pizza Hut opened its 5000 unit in Dallas, Texas. Pizza Hut celebrated its 30th anniversary with more than 6000 units in 1988. In 19th May 1982, Pizza Hut began its operations in
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Malaysia with the opening of its first outlet. In 1996, Pizza Hut sales in the United States were over $5 million. However, Pizza Huts market share has slowly matured because of intense competition from their rivals which is Dominos, Little Caesars and Papa John's. In the past, Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first mover. One of their main strategies, which they still follow today, is the diversification of the products they offer. Pizza Hut is always adding something new to their menu, trying to reach new markets.Nowadays, Pizza Hut is the largest pizza restaurant company in the world specializing in American style pizza. As of 2012, more than 6,000 Pizza Hut restaurants in the United States, and more than 30,000 store locations which is 30,190 restaurants in 94 countries and territories around the world. Employing more than 300,000 people and YUM! is the parents of company of Pizza Hut. Nowadays they serve different style of pizza along with side dishes including mushrooms soup, pasta, chicken wings, breadsticks and garlic bread.

PIZZA HUT LOGOS


1958 1967 1967 1999 1999 present

COMPANY PROFILE

PRODUCTS: FOODS AND BEVERAGES CEO: DAVID C. NOVAK PROFIT: $4.5 BILLION (2012) HEADQUARTERS: ADDISON, TEXAS, USA FOUNDED: WICHITA, KANSAS, USA, 1958 FOUNDER: DAN AND FRANK CARNEY

COMPANY NAME: PIZZA HUT

SLOGAN: EAT, LAUGH AND SHARE

TYPE OF BUSINESS: WHOLLY OWNED SUBSIDIARY

MISSION

: P.E.A.R.L.S PASSION for excellence in doing everything EXECUTE with positive energy and need ACCOUNTABLE for growth in customer satisfaction RECOGNIZE the achievement of others and have fun doing it LISTEN and more importantly, respond to the voice of the customers.

COUNTRY COMPETITIVNESS
Porters Diamond Model

1. Firm Structure , Strategy and Rivalry

Pizza Hut Malaysia Structure, they employ a centralized top management at the strategic level that deals with supplier, franchising terms and business planning. While, at the operational level, decentralize style is been used where the restaurant managers and operators are empowered to carry out the duties and responsibility of providing high standard of service, product quality and cleanliness of the outlets. Pizza Hut also takes initiative to train their employees in order to increase the quality of work and maintain the good services of Pizza Hut. Excellent service and product innovation came as a result of training and sharing the invaluable experience and teaching and learning culture practiced in all Pizza Hut outlets. As a result, Pizza Hut Malaysia had arranged an Annual Championship Competition to develop teamwork for each outlet as the aspire to achieve the excellence standards expected in term of hygiene, accuracy and speed of order processing, general dining area cleanliness, hospitality and acceptable food quality. Normally, a new recruit will been training as to practice a Pizza Hut work culture.

Pizza Hut brings their unique culture in a number of ways. For example, they established YUM Leadership programs, where franchise and company leaders gather to learn how to lead and build teams with common agenda. They also begun to started the values of accountability, excellence and teamwork in their daily work. Between the two levels are a team of managerial integrators who travel widely to the outlets countrywide to ensure policies and operational procedures of up-keeping the outlets are adhered to. This team provides the relevant support to ensure launches new recipes and sales promotions are carried out smoothly nationwide simultaneously. Pizza Hut Malaysia achieves this by Forging Excellence Through talented People.

The greatest success of Strategy, Pizza Hut in their practice of work is through C.H.A.M.P.S. which is refer for Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality and Speed. C.H.A.M.P.S is umbrella operations program for training, measuring and rewarding their employees performance against customer standard. Pizza Hut was a restaurant system with three great brands but many different procedures and training manuals but it is not too long ago. So, they went to work to weed out redundancies, leverage learning and create a uniform approach for everything from the
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way their train people to how they cook the food. The goal was, to ensure that their customer receive the same level of superior service and food quality at all of restaurant. Pizza Hut Rivalry, their top competitor within the same business is Dominos Pizza. The differences between these two companies are their preparation time of making pizza and their serving method to the customers. For example, when customer visits Pizza Hut there are crew members for his assistance. They assist the customers to their seats based on the number of people. They will also provide the customer menu and explain about the new items in menu. Once pizza has been order, the pizza is bought in pan and then served to the customer. If the customers want to take away, the pizzas will be in special package. For home delivery orders, Pizza Hut tries to deliver order within 30-45 minutes of order being placed. Through there are certain terms and condition like orders are delivered to places which fall within a particular distance from the outlets. As Dominos, when they receive order for take away or through telephone for home delivery it follow a delivery schedule to meet its 30 minutes delivery criteria. For its delivery promise to work, Dominos follow an 11 minute schedule, one minute for taking down the order, one minute for Pizza making, six minute oven time and three minutes for packing, sealing and exit. But, those who eat at the outlet itself are also served in the cardboard box as for take away or home delivery instead of plates.

2. Demand Conditions

Customer Focus

In Pizza Hut, they listen and respond to the voice of customer. In order to satisfy customers, Pizza Hut provides the best pizzas under one roof. This is because at Pizza Hut they belief is that every pizza has its own magic, thus making it a destination product that everybody looking for. Pizza Hut has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customer in different parts of the world. For example, in Malaysia, Pizza Hut have captured Malaysian

customer as their produced pizzas that fulfilled Malaysian customer taste. One of it when Pizza Hut introduced customers of Rendang Pizza and Satay Pizza.

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In order to attracted customer to visit Pizza Hut, they focus on affordable pricing. It enjoys product quality leadership in the market and its pricing is just enough not to be out of customers reach. Pizza Hut also introduced variety of pizzas menu in order to fulfill the tasted of customer. Besides that, Pizza Hut not only served their customer for pizza only but its also served variety of other product for example Salad and Pastas, Soup and Dessert and Appetizers. Although all the product offering in Pizza Hut are not as fast moving as its pizza, but they usually complement each other. For instance, when a customer come to restaurant, its usually starts with some soup and garlic bread and then moved on to pizzas along with some diet salads. In this way, Pizza Hut caters to different people with different needs and tastes and preferences. This helps in increasing sales, profitability, market share and above all.

a.

Factor Condition :Factor condition refers to factor that effect the business of Pizza

Hut. Probably, the factors that bring a successful to Pizza Hut is the labor itself, advertising, technology and etc. First labor itself. Wheres Pizza Hut give employees the tools to develop their skill. They have comprehensive management development and training programme called Developing Champions, which is one of the best in industry, combining both technical and managerial training. For example, Restaurant General Manager plays important roles In Pizza Hut. He has responsibility for the running of the restaurant, managing the business as if it were their own, managing the financial side, product ordering, production, quality monitoring, customer services and training and development of staff. Pizza Hut is committed to recruiting and developing the very best people. They have a strong track record of developing very best people at every level. The Only Thing That Tops Our Pizza Is Our People!

Be the Leader, Act like the Leader.

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Every crew of the Pizza Hut family believes in Tricons Leadership Principles. Pizza Hut enables them to make success happen by pervading all levels of their organization from restaurant crew member to upper management. Which mean, the high contribution by the member is the one of the factor condition. Through technology, Pizza Hut adding new technology to help make the business even more successful. Their plan includes monitoring the progress of business at anytime, anywhere via remote log-in functionally. They also plan to recruit people as employees through online recruitment. Those applicants that meet the minimum criteria are added to shortlist. A part from that, Pizza Hut also plans to do online training for managers and team members. They also have used technology in order to increase their demand of pizza. They provides home delivery and online order for customer convenience. With the vision of Run-Great-Restaurant, Restaurant may be the one of the factor contribute to successful of business. Pizza Hut maintained their good image in concept of restaurant. Which is, they create a very interesting dine in where it is suitable for all level of age. Plus, the restaurant concept is suitable for gathering and also can be used to anniversary ceremony. This kind of concept attracted customer to seat and enjoy pizzas at Pizza Hut Restaurant. Compare to Dominos where, they more focusing on delivery pizza and they not provide really good dine in at the restaurant itself.

INTERNANTIONAL ENTRY STRATEGIES


After being success in their home country ,United States ,Pizza Hut decided to expand their market from domestically to internationally .It is because their market growth at domestic market has increases makes Pizza Hut believe that this firm must do internationalization to find new market that is doing international entry strategies. International entry strategies can be defined as firms strategy in moving the company towards greater acceptance domestically and mainly at international level .There are some basic decisions that Pizza Hut must take before a foreign expansion such as where ,when and how to enter .

WHERE TO ENTER ??? Where to enter relates to the location of foreign expansion .Right location will realize the long-run profit potential of the firm .Pizza Hut choose Canada as the first countries to internationalize its product because of similarities of culture ,economic and political
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conditions .The first international business done by Pizza Hut is to open their outlet at Canada. Canada and United State almost have similar characteristic of culture, economic and political condition. Because of the similarities ,it will easy for Pizza Hut to adapt with Canada environment .Other than that ,United States and Canada are same region and they are good neighbor which is easier to do internationalize . After that ,factor that Pizza Hut selecting of which countries to enter next is based on demand and supply ,high consumer base ,high purchasing power and less competition .For example in Malaysia ,Pizza Hut open their branches at Mentakab ,Pahang in 1989 .At that time , Mentakab still be considered as rural area .This is Pizza Hut long-term strategy to outreach those areas where competition is low .

WHEN TO ENTER ??? When to enter also known as timing of entry ,is the next step for a firm after it has identified attractive market .There are two significant issue that be produced in the timing of entry ,whether the firm become first mover or late mover .In this case ,Pizza Hut was the first mover company to enter business in pizzas industries .The first mover can maintain their business due to their customer loyalty .Pizza Hut also being the first mover to create sit-down restaurant concept and become the first restaurant that offer delivery services . Aggressive marketing strategies that Pizza Hut used give impact to our daily life which is we can remember that Pizza Hut delivery contact number .That is the power to be first mover .People always remember about our brand and that is why ,if we want to eat pizza`s ,we will prefer Pizza Hut .

HOW TO ENTER ??? Pizza Hut mode of entry into international market is through wholly owned subsidiary and franchising .Pizza Hut is a wholly owned subsidiary of Yum! Brands, the world largest fast food restaurant company in terms of system unit .Yum! is the company that operates and give licenses to Pizza Hut to operate as worldwide restaurant .This entry strategies is allows a firm to speed up market penetration and can control the resources .In Pizza Hut company ,this firm use franchising to entry into international market .Pizza Hut start to open new branch of franchising on 1959 in Topeka ,Kansas . The franchiser will

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help local firms with business by providing training the workers, supply in the setting up of restaurants and equipment. The franchiser strictly controls the business system to guarantee the customer a constant and consistent experience of the product quality. "Pizza Hut franchise is part of YUM! Brands and to be considered for a Pizza Hut franchise you will need to have $360,000 in cash and must pay royalty fee of 6.5% per month based on monthly profit . The uniqueness of Pizza Hut is their sets itself apart from a lot of its competitors because it allows Franchisee's independence in deciding some of the items they will carry on their menus such asbeing free to use different kinds of toppings from different suppliers. While there are differences in ingredients, the basic elements in each pizza are the same. This allows consumers to get the familiar taste they love, but also allows franchise owners to branch out.

DIFFERENT CULTURAL ENVIRONMENT


During the positive expansion of Pizza Hut, there are many problems faced by them that are to adapt Pizza Huts menu and services to the local demands as well as the way of managing people cross-culturally. Pizza Hut worked hard in order to meet the satisfaction of their customer in different countries. There are two specified culture environment problem faced by Pizza Hut, it is internal and external. But in these cases, is more focus on the external factors. External factors means, all the factors that not related to the management in the company. External also is the global worldwide range, so it could be anything that is related to the business of the company from up to toe. Here, we classified the differences of Pizza Hut based on the different countries.

Malaysia
Cerebos is a Singapore based-company and was the first owner of the Pizza Hut in Malaysia. Pizza Hut began its operation in Malaysia on 19th May 1982 with the opening
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of its first outlet at Yow Chuan Plaza, Kuala Lumpur. Cerebos had opened 29 outlets and decided to sell the franchise to KFC Holdings Malaysia Berhad in December 1995. The number of Pizza Hut outlets since then has grown to 72 outlets today. Pizza Hut is projected to grow at a planned average rate of 10 new outlets per annum for the next 3 years. The specialty of the Pizza Hut in Malaysia is not only open at the urban areas, but it also opened at the rural areas based on the demand. As we know, Malaysia is the country that use Islam as the official religion and Pizza Hut that operates in Malaysia are strictly not serve non-halal foods and also do not serve alcoholic drinks. By using this policy, Pizza Hut are able to attract customer to come to their restaurants mostly Malay. Pizza Hut in Malaysia need to apply Halal certificates from JAKIM in order to operate their business to all citizens. In terms of menu, Pizza Hut are try to adapt all the ethnics, custom and traditional foods in order to produce the most attractive and delicious pizza in Malaysia. For example, Pizza Hut has an experienced in produce 3D Triple Chicken Sensation Pizza. It consist of the Malay traditional foods, it is delightful Chicken Loaf, Succulent Chicken Salami and Fluffy Chicken floss. Instead of trying to produce pizza by following the Malaysia cultures, Pizza Hut also serve variety of menu, for example pasta , desserts and drinks. In addition, different countries will also produce different pizza and its only available at that specific countries. For ex ample in Malaysia have Golden Fortune Cheesy Crown Pizza and Mexican Fiesta Pan Pizza. In Malaysia Pizza Hut already combine the Pizza Hut's Stuffed Crust Pizza and Signature pizza, called is as Super Pan Pizza. Pizza Hut in Malaysia also creates the package like Sensasi Delights, Combo Meals and the latest one is Smart Lunch. In terms of promotional, there are many types of promotion that Pizza Hut use. For Malaysia, Pizza Hut more success in attracting people from television commercial. The commercial that Pizza Hut done, have give a big impact because the study shows that sitting watching television together with family is one the culture in Malaysia. As we know the largest competitor of Pizza Hut are Dominos and Dominos promotions are less than Pizza Hut. Pizza Hut used two languages in their Restaurant services and Commercial in Malaysia. This because Malay is the official language in Malaysia, meanwhile English also been used as second language in Malaysia. Next, the different between Pizza Hut in Malaysia from other countries are delivery service that Pizza Hut provided. PHD Delivery Sdn Bhd ("PHD) acknowledges and respects the privacy of individuals. This policy will reduce customer time in ordering the
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pizza. This policy also covers all the personal information that PHD hold and sets out the way in which PHD will use, manage and protect personal information when customer visit any of Pizza Hut websites or stores. Pizza Hut guarantee 30 minutes or less delivery or get a pizza on Pizza Hut for free and no delivery charge and all prices are nett. Meanwhile, Dominos policies are if the delivery late, the customer will receive money off voucher pizza. In Malaysia have two types of delivery. Firstly, customer can come to the restaurant make and order and take away. Secondly, customer can order through telephone or order online and the delivery man will send the pizza straight to the customer house within the time required. The official vehicle for the delivery man at Pizza Hut is the motorcycle.

India
Pizza Hut in India was opened in 1996; its brought in India its international heritage, its pizza expertise and world class standards of quality and taste. The pizza is a food foreign to the Indian palate; this is small feat by looking it as successful brand today. India is one of the countries in the world that operates only 100 per cent vegetarians Pizza hut Restaurants. It located I Ahmedabad, Surat and Mumbais Chowpatty, and a special Jain menu sans root-based ingredient are again a reflection of the adaption to local preferences. Root-based pizzas do not contain onion and garlic. Instead of garlic bread, special Jain bread is served. Moreover, dressings on India salad are completely egg-less. Pizza hut in India created Indian topping and vegetarian pizzas. The most favorite of flavors in India is Chicken Tikka, Spicy Korma and The Tandoori range. As we know, in Indians religion they are not allowed to eat meat or beef. But instead of operate business with fully vegetarian foods; Pizza Hut in India also put some menu for non-vegetarians. The pan pizzas in India start at just Rs 65, which is probably among the lowest price in the
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world. The recent Pan 4 All initiatives are also an example of good value of money. Pizza Hut in India also served side meals such as pasta masti, desserts, soup and salads and beverages. The difference with Pizza Hut in Malaysia, Pizza hut in India is allowed to serve alcoholic drinks such as margarita. The special about pizza in India they serve most tasty pizza it is new Crown Pizza or could be name as The King of The Pizzas. It contains 12 tastes of juicy vegetarian or chicken kebabs and creamy hot paper sauce. Meanwhile the Pizza Hut in India required languages for job application are English and Kannada. In India, foreigner is everywhere and they believe that in order to make the communications process run smoothly between workers at Pizza Hut in India, they must know how to speak in English instead of using their own language. The advertising or Promotion strategies for Pizza Hut in India are divided in to two-fold. Firstly, by laying emphasis in India and being International brand with an Indian heart. For example by creating the pizzas and side dishes by follow the Indian cuisines. Pizza Huts communication is reflective of family values and family bonding. Secondly, highlighting the idea that the pizza is a medium that brings people together ensures that this is a brand that helps to connects with Indian consumer. In terms of delivery, Pizza Hut in India still using the same concept of Home country concepts it is by using Pizza Hut Delivery services (PHD). This service is offers great quality pizzas, pastas, desserts and beverages delivered to your doorstep. PHD is now present in over 40 cities in India. Instead of ordering pizza through the phone call, customer also can order through online. Just click the website, register or log in and order. It can be done so easily and can reduce time. The benefit of doing this online ordering is can reduce the mistaken order taken by the staff because customer will choose the menu by their own. In India, delivery boy basically are using scooter to deliver the pizza to the customer house, and the policy late received are still remain unchanged customer will received free pizza when the delivery late about 30 minutes and above.

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China
The first Pizza Hut was opened in 1990 at Beijing, Pizza Hut has been in China more than 50 city opened 187 Chain store, more than 10000 employees. Among them, the East China market has 69 stores, located in 15 cities. In late May 2004, China Yum has announced about the domestic more than 130 Pizza Hut stores management in China has been fully recovered. In China they called a business management of Pizza Hut, Tricon Global Restaurants as Yum. Pizza Hut in China region general manager explained that Pizza Hut later, will not adopt franchise business model, but for the headquarters management and business expansion China will still refer to the Yum. Some says that Yum are already ended the contract with the The Jardine group because of they are not satisfied with the rate of expansion that The Jardine group has done. But based on the analysis, the management made by The Jardine group about franchise mode cannot complete the mission yum.

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Pizza hut has yet to achieve economies of scale and the franchise's door not closed permanently, stopping agent, is consideration to depend on Yum strongly and beverage industry experience, to make the brand do greatly strong.

In terms of Menu of Pizza hut in China, Pizza Hut introduced a series of Chinese food products. With this, they hope that through the broad and profound Chinese food culture and pizza are integrated with each other to meet Chinese taste. Pizza Hut and more on atmosphere, dim light streamed down, reflected in the attached to the walls of the abstract painting, forming a circle of ambiguous image, giving a hazy warmth, like a painting of the evening in a terrible coincidence: only a piece of pizza distance, food and cultural encounter. They provide three kind of services in China including Full Service Restaurants (Pizza hut canteens), Home Service Restaurants (Pizza hut delivery), and Restaurant Based Delivery (Pizza hut express). Pizza Hut was the first restaurant chain to introduce pizza and Western-style casual dining to China in 1990. Pizza Hut in China also has made the transition from Western-style casual dining expert", to the introduction of French treasure progenitors new wine. More than 30 Pizza Hut Happy Restaurant in China was first introduced the taste of France Bao progenitors new wine. Pizza Hut also offers threecourse gourmet meals at a pretty penny. Customer can find on the menu: seafood (including: oysters, snails, and shrimp), salads, soups, steaks (beef, lamb and pork) and all kinds of desserts. The menu in China is quite different from others countries because they want to adapt the culture from China into the taste of the foods. To get halal foods in China is not easy because they also served pork and alcoholic drinks in Pizza Hut restaurants. Pizza Hut now, is the number one casual dining brand in China with more than 700 restaurants in 120 cities.

China is one of the countries that have technological advances rapidly; in the terms of promotion China is one of the countries that have a many ways itself in order to promote the pizza. First by producing a new product, Pizza Hut offer new product for each period, it always change major dishes in each period of time, and other supporting dishes or something like that. This promotion strategy can make customers think that Pizza Hut is in fashion and fresh. Recently, Pizza Hut release a new serious pizza and dishes called Mythic Harem Its including Harem Sweetie and Magic Apple Tea. In China Pizza Hut also introduced the thematic series pizza. Such as Universal Fund Surprising, Trend Exotic Trip and China Featured Although these pizzas have a little
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different from each other, for the customer, they are still the new ones. So with this strategy, Pizza Hut has broadened its market. China belief in their culture, language and ethnic are very strong, and websites for Pizza Hut in China are fully in their language. This is one of the ways, how China attracts their customer. Besides that, China also using a full Chinese language in order to promote their new brand of pizza to the customer in the television commercials. For example, there are televisions commercial about Chinese New Year and they want to promote spaghetti so, they use China official language as a medium to communicate. Pizza Hut in China also still using the same concept from the Home country for their customer o make an order for the delivery. Customer can order online or can order through phone call. Things that make Pizza Hut in China different than others is, Pizza Hut in China send the delivery by using the electric bicycles for the nearest place and using bike for the place that quite far. Pizza Hut in China wants to maintain the concept of faster delivery of their pizza by Using this bicycles. As we know, the big urban cities in China are very busy. Thus, with the using of bicycles can accelerate delivery time and reduce costs. Example of the city that using these bicycles as a transport are Shanghai, Beijing, Guangzhou, Shenzhen and the whole Zhejiang province.

SWOT ANALYSIS OF PIZZA HUT


Strengths Pizza Hut is a worlds largest restaurant chain that they dominate their market. They have over 20,000 franchises around the world and the brand leader in the United Kingdom. Pizza Hut specialized in pizza and their products have been voted number one in countless consumer surveys nationwide. They have low competition but Dominos is the fierce competitor to them. This is because both of them in the same sector and generate same products in the market. Pizza Hut strength also sound financial situation and international turnover. Pizza Hut is the famous television advertising and the food attracts various ranges of people from young to old. They also have a huge segment that attracting more customers meaning a higher percentage in sales is which may lead to greater profits. Pizza Hut sits on top of global full-service restaurant tree. They have a full service restaurant as well as delivery services.

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Weaknesses However, the weaknesses of Pizza Hut are declining in customer satisfaction of the pizza that felt by loyal customers. Because of that, may lead to customers switch to main competitors such as Dominos Pizza due to low customer satisfaction and a reduction in customers. The credibility in market also low because of declining in customer satisfaction. Pizza Hut in New Zealand and Australia face and battle with problem although Novak said Pizza Hut expansion into China is going exceedingly well. Therefore, mean they are losing money in places such as New Zealand and Australia that could be due to their culture and lifestyle. So, Pizza Hut need to introduce more variety range of products to attract customers based on their cultures and lifestyles. Besides that, Pizza Huts have a complex computer systems and internal conflicts from franchisees that leads to the motivation of staff. They also lowering the quality of products, services to customer and could lead to a lack of new ideas.

Opportunities Pizza Hut can attract new customers by introducing new pizzas with different crust sizes and flavours. The new tastes of pizzas will grab more new customer that may increase their sales. For example in Malaysia, Pizza with Rendang topping or Satay topping. In addition, Pizza Hut has expanded into the Indian market menu and looks to the olds favourite to increase sales in the United States. They also can come up with the new products considering the Eastern taste of the people and diversification of new products that can increase their market share. They has targeted upscale products and downscale consumer base that will attract customers who are willing to buy these pizzas.

Threats

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The most threat for Pizza Hut is the competitors. Dominos Pizza is the strong and fierce competitor to Pizza Hut because their main competitive advantage over Pizza Hut is their lower price. McDonald also has tried to introduce a new meal that is a pizza called McPizza. In order to compete with Dominos Pizza, McDonald or others competitor, Pizza Hut need to improve or maintain the quality of the pizzas to ensure that Pizza Hut dominate this market. As consumers go for greater convenience it rising competition undermines Pizza Hut. The sales will go to smaller companies who are charging less will lower the amount of sales consumed by Pizza Hut. Cheese is really important and the main ingredient to make the pizzas. So, rising cheese costs threaten margins that tend to Pizza Hut eventually buying goods from abroad or buying cheaper products that not quality.

CONCLUSION
Pizza Hut operations are recording very strong sales growth. In Malaysia, K&N Kenanga Research, an investment analyst company revealed the future plan for Pizza Hut, The KFC Management had indicated that they would be concentrating on growing Pizza Hut (The Star, 2000). Pizza Huts sales have been rising rapidly from RM52millions recorded in 1996 to RM100millions in 1999. SWOT analysis has been performed by Pizza Hut to achieve the goals there is Strengths, Weaknesses, Opportunities, and Threats.

CONCLUSION

The selection of a market entry strategy is critical to the success of a firms foreign operations. Each firm planning on internationalising has a differing set of circumstances. These circumstances can be

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either internal or external to the firm. Internal circumstances include availability of resources, experience of staff and spirit of entrepreneurship. External circumstances include size of home market, attractiveness of foreign markets, and political conditions in foreign markets to name but a few. These circumstances determine the suitability of the different market entry strategies.

Due to advances in telecommunications and increases in trade agreements the world is truly becoming a global village. The trend of globalisation has led to fierce competition where internationalisation is no longer an option but a necessity in many industries. Foreign market entry is no longer restricted to large multinationals and is now a matter of concern for all businesses regardless of size.

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BIBLIOGRAPHY
http://www.pizzahut.com/ http://en.wikipedia.org/wiki/History_of_Pizza_Hut http://en.wikipedia.org/wiki/Yum!_Brands http://franchisewisdom.com/pizza-hut-review

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