Strengths
Strong reputation
The reputation of the business as the only restaurant that offers unique and best quality is amongst the strengths of Karam Pizza business. The reputation ensures increased clientele as well as helps in building the business brand loyalty. The strong reputation the business has built in the last three years will help it retain its customers. It will also aid the business gain the needed competitive edge.
Outsized client base accruing from the operational environs
The large pull of customers is a strength to the business. The customer base consists of the delivery businesses alongside the increasing number of the office workers. These large pools of customers will result into the increment in pizzeria sales revenues. This will eventually be used for its global expansion and growth.
Quality foodstuff and remarkable menu choices
Along with the provision of unique menu, the pizzerias are also committed to providing quality products to its customers. Given the fact that the competitors are capable of copying and introducing the pizzeria exceptional menu, the only way to set apart its food is through quality. This will make certain the customers sustainability.
From the time when it was instituted, Karam Pizza has seen an incredible growth because of the extraordinary menu choices its clients have. Karam Pizza brings together an assortment of Italian and Indian cuisines. This amazing menu is amongst Karam Pizza’s biggest strength that augments its competitive advantage.
Weaknesses
Centered on producing particular food products
Karam Pizza has various weaknesses. One of the weaknesses of the restaurant is that Karam Pizza is facing lack of diversification. The restaurant specializes just in one of its pooled cuisines. Different form its market competitors that have diversified offers, the restaurant only offers one best combination.
This would lead the restaurant into losing its competitive edge across the global markets. This is because some independent competitors are adding favorite food items into their menus. Thus, they lure more customers in their restaurants compared to Karam Pizza.
Inadequate financial resources
Karam Pizza appears to lack funds and this is perceived as a hindrance to its rapid global expansion. Karam Pizza is just a mere one-shop restaurant but faces strong antagonism from other entrenched restaurants. As a result, Karam Pizza has not generated enough pool of capital to expand on its business and market operations. Moreover, the restaurant is not large enough to benefit from the economies of scale. Lack of enough capital or financial resources has a negative effect on its capacity to deliver services to its global clientele.
Inability to service the arriving clientele
The pizzeria limited, Karam Pizza’s capacity to service a large pool of walk-in customers contributes negatively to its sales revenues. As the restaurant reputation grew, its capacity to serve customers especially during dinnertime was very limited. The limitations were seen in terms of the quantity of food as well as efficiency in delivering services. Order delays together with low food productions have made the restaurant lose some of its loyal customers who made it succeed.
Opportunities
The prospective to enlarge the business
Karam Pizza has numerous promising opportunities for it to expand its business operations particularly into new areas. Moreover, the business can expand its services on the business-to-business (B-2-B) basis. Other areas where the business can expand its restaurant services are the business functions including sales meetings and birthday lunches.
Improved demand for take-away
The Karam Pizza restaurant should take advantage of the increasing demand for take-away. The increasing number of take-away customers that throng the restaurant during evening hours offers an incentive for the growth of the restaurant. The restaurant should increase its capacity to meet the rising demand that will eventually provide revenues for expansion.
Innovative menus that are exclusive of direct rivals
The restaurant has an opportunity to offer new menus that are not presented by other market competitors. Offering an original menu that is different from those in the market can provide the Karam Pizza restaurant with an increased competitive edge. The opportunity to offer a new-fangled menu with no direct competitors will increase the demand for its food items thereby increasing the consumer base.
Tremendous development reported in the pizza market division
From the case, it is apparent that there is growth potential in the restaurant business, as additional cuisines are needed. Moreover, the growing number of the working class in the community where the restaurant operates provides a new opportunity for business growth. Besides the growing number in the walk-in customers, there is simultaneous growth in the number of business within the area. This also presents a growth opportunity for Karam Pizza.
Threats
Market rivals are prone to implementing identical menu
The pizzeria offers a combination of foodstuffs that can easily be imitated by other restaurants. Currently, the Independent Restaurant is already offering some of its combinations luring some of its customers to their businesses. This results into the reduced number of its customers and sales revenue. Besides, the pizzerias are facing the threat of increments in prices of inputs as well as the cost of doing business.
Rivalry budding from entrenched restaurants
From the case study, the biggest threat facing the restaurant is competition from large and well- time-honored food restaurants. These restaurants already have networks around the town where Karam Pizza is operating. Moreover, self-governing contenders that offer some of its combinations also pose serious threats to Karam Pizza business.
Enlarge the efficiency and capacity of the pizzeria
From the case, Karam Pizza has the alternative of increasing its capacity to meet the needs of all its customers. In essence, the restaurant should thrive to ensure that both the walk-in and business customers are serviced as required. The advantage is that Karam Pizza will continue to expand its sales while building its reputation and global brand image.
Another advantage is that the business will not continue to lose its customers, but instead amplify its client base. However, increasing the capacity can be costly to Karam Pizza business. The other disadvantage is that the pizzeria will be forced to charge different prices. For instance, lower prices will be charged to the individual walk-in customers while higher prices will be charged to business deliveries.
Enlarge operations into the business-to-business ventures
Though the business-to-business deals might not be potential now, it offers the best opportunity for future growth. As the number of business increases, the business-to-business deliveries are viable for future growth. The advantage of business-to-business deliveries is that they are highly priced thereby increasing the revenue generated by business enterprises.
Another advantage is that such deliveries are undemanding since they only require a few staffs to accomplish. The disadvantage with these kinds of businesses is that they are prone to competition. Furthermore, they may take long before making any payments.
Curtailing the charged prices
Given the increased rivalry from independent pizzerias offering comparable combination of cuisines, Karam Pizza can opt for price reductions. However, to attain the reduced prices objective, the business must offer large quantity of food while increasing its operational efficiency.
Mass production will cover the costs incurred while ensuring that the business enjoys economies of scale. However, in situations where the customer base reduces, price reduction might not be feasible. Finally, the competitors may equally curtail their prices and this might negatively affect Karam Pizza business plans.