Answer to Question #305232 in Microeconomics for Charles

Question

When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as the leader of the $25 billion pizza industry. Today, Pizza Hut offers five styles of pizza, including the Original Thin Crust Pizza, Pan Pizza, and its Hand-Tossed Style. Explain why Pizza Hut has expanded its offerings of pizza over the past five decades, and discuss the long-run profitability of such a strategy

Answer 1

Pizza Hut's expansion policy can be seen as one of the most important strategies commonly used by business firms. At the initial stage, companies launched only one type of product and occupied a large market share. She later expanded her range. I believe that this strategy is profitable in the long run, but with a well-thought-out product policy. Carefully designed product policy helps to form the range, improve it in a timely manner, eliminate inappropriate products, optimize the budget and increase the competitive advantage of products. Planning allows you to improve the economic performance of the enterprise and develop an algorithm of action in case of possible changes.