Question

In: Operations Management

Case : Maestro Pizza Entering the food industry nowadays became harder than before. The people now...

Case : Maestro Pizza
Entering the food industry nowadays became harder than before. The people now pay extra attention to even small details when it comes to food. The variety of food kinds, the way the food being served, the quality of food, the price and even the place decoration! Furthermore, there are tons of restaurants (competitors) those being in the food industry for decades which makes it even harder to compete them. Not to mention if a new restaurant will serve one kind of food that already being served by other expert restaurants.
Here we talk about a new restaurant in Saudi Arabia that successfully entered the food industry and managed to compete existed restaurants who are serving the same kind of food for a long time and even considered the best in the world of serving such food! The restaurant's name is Maestro Pizza which is locally founded and operated by Saudi people. This restaurant has successfully dominated the market and stole the throne from underneath of many other pizza restaurants like Pizza Hut and Domino’s Pizza and others.

In the context of the above case analyze and provide solution to the following:
Q1 Bargaining power of consumers
Answer:
Q2. Suggest strategies to differentiate Maestro Pizza products and services with its competitors
Answer:

Solutions

Expert Solution

(Answer 1)

By bargaining power of consumers we mean the power the consumers hold to bargain about the price, the quality, better customer service and the type of product they need from the market. In the above case the consumers had the power of bargaining the best quality and new type of pizza in taste and appearance. The consumers had the power and they shifted their preferences from Pizza hut or Dominos to Maestro Pizza in Saudi. This is the reason that the pizza, though new in the market is being liked by the Saudi people and hence capturing the market successfully.

(Answer 2)

The strategies which can be used to differentiate Maestro Pizza products and services with its competitors are as follows:

  • Adding on to the new tastes and flavors in the pizza will help in differentiating the product from others pizza.
  • Following the low price strategy and offering the pizza at a much economical prices as compared to pizza hut and Dominos.
  • Advertising their product openly and position the pizza being sold, in the eyes of the customers so that they shift their preferences from Pizza hut and Dominos.
  • Changing the packaging of the pizza being sold and making it more family friendly, safe to use, and portable.
  • Offering superior customer services to its target market so that the customers like what is being served to them and grabbing a wider market area becomes possible.

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