The company background and its business nature
The Vision of Pizza box is “To be the best Pizza Delivery Company in Hong Kong by providing 100% SATISFACTION to all stakeholders”.
Pizza Box is a company concentrating on pizza retailing, especially focus on pizza delivery. The Company was established in 1985 and wa a franchisee of the renowned pizza company Domino’s Pizza in Hong Kong and Macau. By February 2003, the franchisee was expired and the Company was by then no longer operated with Domino’s Pizza. On the first of March in the same year the Company then developed its own pasta and pizza and relaunched as Pizza Box. Pizza Box follows the principle of food quality control of Domino’s Pizza and offers a wider variety of food at a lower price. By now Pizza Box has opened 14 stores located in Hog Kong Island, Kowloon and the New Territories, for example, Pokfulam, Honghom, Tai Po, Shatin and Yuen Long etc.
External environment
Porter’s Five Forces Model
Porter‘s Five Forces Model is a framework to analyze the competitive pressures of industry and business strategy.
If consist of 5 aspects 1. Buyer power 2. Supplier power 3. Threat of substitute 4. Threat of new entrants 5. Rivalry among existing competitors
Bargaining power of buyer
The bargaining power of the buyer is low, because buyer do not has a large , concentrated buying power . Although there are a lot of customers in the market , but most of them are unlikely to buy a large amount products or food in a time . it is just a small proportion of the company . So that they are difficult to earn a volume discount form the Pizza Box.
Oh the other hand, it is the fact that are several similar industry in the market, for example pizza hut and Cheese pizza. Majority market share of pizza industry are shared by these three companies, included pizza box, their prices are similar but