Case 1 – The Pizza Wars Come To Campus
Problem Statements:
1. University president announced plans to construct facilities which include a new food court and this permits three private organizations to operate food service operations in the campus which are Dunkin’s Donuts, Taco Bell and Pizza Hut.
2. With the permit of entrance for new food service operators in the campus, there will be an increased competition from other type of snack foods and fast foods such as Dunkin’s Donuts and Taco Bell, respectively. Also, there will be competition from Pizza Hut which offers limited menu and selection of pizzas on walk-up-and-order basis.
3. Constraint in space and equipment limits the capabilities to meet the growing demand and allow deliveries to made in time, and thus demand and sales level off as a result of the increase in delivery time.
Question 1
Does BSB, Inc., enjoy any competitive advantage or core competencies?
Yes, BSB, Inc., enjoys competitive advantage or core competencies. Competitive advantage can be defined as the ability of a company to sustain profits that exceed average profits for its industry. It is also the ability of a firm to produce a good or service at a lower cost than its competitors. This allows the firm to have the ability to sell its goods or services at a lower price than its competitors or to generate a larger margin on sales. Core competencies are the unique strengths or strategic advantage of a business. Core competencies are the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Theoretically, a core competency meets three conditions as followed: It should allow a company to expand into new end markets as well as provide a significant benefit to customers. It should also be hard for competitors to replicate or imitate. It can also be leveraged widely to many products and markets.
There are a few ways where BSB, Inc., enjoys competitive advantage or core...