Pizza Burger Deliverable 2 Essay Samples

For the success of every business it is very important to implement the business strategy properly that match with the customer need and market demand. Actually Business strategy is always concerned about the decision that how a firm will compete in a specific market. A good strategy at the time of business establishment can be a cause of its success. Strategy formulation is not an easy step before implementing any strategy for any business it is very necessary that a through market research is being conducted to know about the feasibility of the business and find out the opportunities for business growth.

Business level strategy

We are starting our business in Kuwait that is a restaurant that will offer a different product. Our product will be new in the market. We are giving new type of food with combo of pizza and burger that is a unique product. Pizza burger is a food that has material of burger but we will replace the bread of burger with pizza material. This food type will be a new for Kuwait food industry. As we have researched through the market and analyze that there are a huge target market of fast food and this new food pizza burger will attract many new customers also. Now in Kuwait there are a huge community that is fast food lover and they love to try new tastes. When we take views about our product from market people show positive response and they seemed interesting to taste our new product. As we are launching a new product into the market we will use business strategy named as diversification strategy.
Diversification strategy is used in any business when a new entry has to make possible into the market. As our pizza burger is a new product in a new market of Kuwait. While adopting this strategy there are two main issues that come in our mind that are most important. One is attractiveness of the industry in which we are going to enter and second is it possible that while adopting this strategy our company will achieve competitive advantage. Before implementing this strategy there is a need to answer these two important issues.

Attractiveness of business

Competitive advantage of business
Attractiveness of business
As well as there is concern about the attractiveness of the business we have already researched the market and many people is interested into our product and food industry has always many opportunities to grow as people love to try new tastes with time.

Competitive advantage of business

As our business will give a new product into the market that no other restaurant is giving. This will be our competitive advantage and once the business will start we will maintain our quality and taste and try to take more innovations in tastes that keep us superior from our rivals. When we use the differentiation strategy for any business then these two important factors are the basic sources of profit.
With the passage of time there are many changes occuring in business strategies and people love to try new products for new markets and history tells us that there are many products that grow very rapidly in new markets. There are many levels of diversification strategy High level strategy, moderate level and low level strategy. In our business we will use moderate level diversification strategy. It means that less than 70 % of business profit will come from our product and rest of the profit will come from other new experimental food types and other business linkages.

Reasons for adopting diversification strategy

Some Reasons that why are we adopting this strategy in our business are given below in detail.
Opportunity to grow
Risk spread
Value creation
Opportunity to grow
In our business there is a big opportunity to grow with the passage of time. We can expand our business to other new markets and we will also introduce new products within the same or different markets with the passage of time. When there is a new start up of any business there are many chances that business will grow at a faster rate and society will accept our new product very rapidly.

Risk spreading

In every business there is always come variance in profit flows and by using diversification strategy this risk can be minimized.

Value creation

Value addition is the back bone of any industry. In our business of pizza burger we have a great margin for introducing new tastes according to culture of Kuwait. When we will increase our product range there will be more profit that comes from the same business ownership but from variety of products.

Competitive risks in diversification strategy

In the Ansoff matrix this strategy stands separate from other strategy. For diversification strategy there is need of new techniques and skills to properly implement it. There are some risks that are involved while using the diversification strategy in our pizza burger business. As we are introducing a new product into a new market it means that there is huge risk concerned both about the market and the product also. There is a huge level of uncertainty. There is a chance that people will not accept this new pizza burger in the same way as we are expecting. For starting every new business in a very new market there is also risk involved about financial and human resources. To reduce the level of risk in our business it is very necessary that we will use different tests before starting our business.

Attractiveness test

Cost-entry test
Better-off test
Attractiveness test
This test actually depict about the market research before entering into any industry sector. It is being checked before starting any business that whether the industry in which we are going to enter is enough attractive for the customers or not or whether we have enough capabilities in term of human capability and financial strength that we can make our industry more attractive for consumers.

Cost-entry test

It is necessary that we analyze the fact that whether the cost of our entry into market is capitalizing our all near future profits or not.

Better-off test

It is being analyzed that whether the new product that we are offering likes pizza burger has enough capability to take competitive advantage by linking itself with our company. It means that there should be presence of synergy into our new product.
We have conducted all these tests and we concluded that our product that is pizza burger have enough capable to enter into a new market and can gain much appreciation from consumers.

Relationship between customer and business level strategy

While implementing any strategy it is very necessary that we will identify the relationship of customer and strategy. Customers are the basic foundation for every business level strategy.

There are there important aspects that come in mind for explain about the relation of customer with the strategy.

Who will be served?
What needs that has been met?
How needs of customers can be satisfied?
The first question can be satisfied by giving details about the demographic and geographical patterns of market in which we are entering. Our customers will be all fast food lovers of the Kuwait from all age groups especially young generation.
As now many people love to eat fast food and they are in demand of new taste in fast food industry therefore we will fulfill the need of that group.
Third question can be answered that in our restaurant we will provide good taste and healthy food to satisfy the customer needs. We will use our all resources like human resource and capital in full capacity to give valuable food to our consumers.

Competitive advantage by adopting diversification strategy

The most important advantage that we will get by using this strategy is of economies of scale. We will use all our tangible resources and intangible resources for all products that will reduce the cost per unit. There will also be economies of scale in term of internal transactions in our business. We will use all our resources both capital and human to avoid external transactional costs.

Corporate level strategy

As we are going to enter into a new market we will use penetration strategy at our corporate level. By using new product development strategy we will try to get into new market and penetrate in this market. As there is a huge scope of food industry in Kuwait therefore there are many opportunities that we can expand our business by extending our product range with the passage of time. Once we will get success to penetrate into the market then by introducing new products we will keep us competitive with our rivals. Currently there are many restaurants that are offering many new food types and people of Kuwait love to taste and buy new food. The scope in this industry is greater to expand as all the new generation is fast food lovers and we are hitting fast food products by making their combos that will readily be accepted into the market.

Conclusion

In Kuwait food industry is at boom now a days. There are many people who want to enter in this industry as there are huge opportunities to grow and develop. There are many restaurants in Kuwait and we are going to start a new business there. As we are providing a new type of product in starting we will penetrate into the market by adopting the new product development strategy at corporate level and at our business level we will use diversification strategy. All the market research and analysis shows that this business of pizza burger will attract many customers because people always love to try a new taste in the food. Our big competitive advantage is our new product with different taste that will cause to attract many consumers.