However, the fact that Pizza Hut does have a restaurant to run is also a weakness. Pizza Hut has higher overhead costs, due to the restaurant that other competitors dont have to deal with. Another result of higher overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices.
An indirect weakness that Pizza Hut has is that they have lost a lot of their customers and market share due to such intense competition with competitors. Pizza Huts opportunities are almost endless. They can increase revenue with their new innovative pizzas, and increase brand loyalty with good customer service.
Pizza Huts number one threats are from their competitors. Currently, their closest competitor is Dominos Pizza. Dominos main competitive advantage over Pizza Hut is their price. It is generally lower than Pizza Hut. Also, Dominos was very profitable when they ran the promotional deal of delivering a pizza within 30 minutes. However, many lawsuits have been filed against Dominos in the past for reckless driving by their drivers, so Dominos withdrew the promotion. Little Caesars is another one of Pizza Huts competitors, right behind Dominos in market share. Little Caesars is famous for offering large quantities of pizza for less money. Other competitors include Papa Johns, Sbarro, and Pizza Inn.
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