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Assessment 3 Part 1 Situation Analysis Template

Student name •

This situation analysis is about a gourmet pizza restaurant with takeaway option in Canberra


Pizza House is an established to be located in Canberra region with options of in-house and takeaway. The establishment will also offer Italian based products and services. The food includes salads; pizzas such as Tonnata, Fiorentina, Rucola Prosciutto; gourmet pizzas such as Giarfinra, Tropan Hot, and Trifolata; and pasta such as lasagna, Penne Calabres, and Spaghetti Carbonara. The aim of this paper is to analyze the situational analysis of the establishment of the business through determining the industry, competitors, customers, and review the business through the use of SWOT analysis.

Industry Overview

IBISWorld (2016) states that the traditional are still common, but the demand has shifted the market into different customer preferences. The consumers continue to embrace healthier and gourmet options without consideration on the different pricing requirements. The pizza industry employs more than 14,442 while the annual revenue is estimated at $4 billion. In addition, the expected annual growth for the periods between 2012 and 2017 is 2.8%. IBISWorld (2016) estimates the are more than 4,004 establishments in Australia that deals with pizza in Australia. IBISWorld (2016) projects the growth of the pizza industry is similar to the growth of the Australian economy, which is at 2.5% annually. These estimates indicate that the business is viable, and the demographic changes may benefit the business operations. In addition, technological adjustments and socioeconomic changes continue to improve the operations requirements of the industry. ). IBISWorld, 2016The pizza restaurants and takeaway industry are changing, and the demand is increasing especially in the past five years (

Competitor Analysis

Numerous micro-environmental competition variables affect the way business is accomplished in the Canberra region based on the nature of the competitors and competitor’s strategic approaches. The pizza restaurant and takeaways type of competition are pure since the businesses sales the “same” products while operating in the same market environment. The following are the main competitors to Pizza House (it is imperative to note that these competitors are direct competitors to Pizza House):

  • ). The advantage of the establishment is the use of wood, and the establishment is convenient for different target markets: the disadvantage is the limited working hours. Pizza Gusto, 2016). A wooden oven is used to cook the pizza, and a variety of mineral water and soft drinks are available for the customers to sample : however, it costs $1 per a small plastic cups. Pizza Gusto offer dine in and take away, and it operates from Tuesday to Sunday and the working hours are between 5:30 pm to 9 pm. Pizza Gusto most expensive pizza is $20 while the cheapest is $9 (Pizza Gusto, 2016Pizza Gusto – Pizza Gusto are not after a dozen of options, but the strategies are of quality and simplicity (

  • ). Even though the brand name is important and the aspects of franchising, Pizza House would counter these strengths through quality and personalized services. Domino’s, 2016). Franchising of an establishment has numerous benefits but limits on direct engagement with the customers. In addition, it limits customization of the products and services. An added advantage to the Domino’s brand is the home deliveries (Domino’s, 2016Domino’s – Domino’s offers a variety of products including cookies and pizzas. Domino’s is a franchised business meaning it has a wider experience in the market and brand name. The cheapest pizza is $5.95 while the most expensive are $35: the average price is $16.95 (

  • ). It also offers home delivery. Pizza House aims to offer cheaper and diverse pizza tastes and deserts compared with Crust Pizza.Crust Pizza, 2016). The combination result in adventurous flavor and the establishment has maintained high levels of quality and quality consistency. The cheapest pizza is $12 while the most expensive are $24 (Crust Pizza, 2016Crust Pizza – the Crust Pizza combines different ingredients to create a new taste and product (

Pizza House strategic approach in engaging the customers and countering the competitors is through providing quality products and price positioning. The location is a compliment to the entire operations, but Pizza House would utilize effective communication processes and provide high-quality service ranging from design/layout of the establishment, employee’s interaction quality, and high constructs of the entire services such as customer satisfaction, business image, and customer loyalty.

Customer/Client analysis

The targeted location or operational location of the establishment is the Queanbeyan, Canberra. According to the ABS (2011) census, it was estimated there are around 355,596 people in the location while the median age was 34 years. Different segmentation approaches would be employed in engaging the customers:

  • ). The Pizza House targets customers between the ages of 10 and 40 years. According to the 2011 census, there were around 180,000 people within the identified segments. The appropriateness of this segment is the small nature of the family and the influence of family members in requesting for pizza. For example, the children may request the parents to purchase pizza or influence the pizza purchasing behavior. Moreover, the estimates of 2011 indicate that each family has approximately two children. Freeman t al. 2014Demographic segmentation incorporates factors such as age, income, and number of members in determining the appropriateness of a target market (

  • Behavioral aspect is also employed in the segmentation process. It targets to determine the behavior of the customer and provide services and products. The targeted customers are those who are unmarried (single) and require takeaways. In addition, the lifestyle of the customers such as participation in social activities such as parties is also targeted.

The general market is also targeted because the ‘culture’ of eating pizza is embraced by different segments and customer preference. For example, people working at the office may prefer eating pizza rather than other fast foods. In the future, Pizza House aims to start home delivery based on the reception of the customers. However, geographical factors play an important role because of costs and logistics associated with supplying a larger area. It also means that communications channels such as online presence and communication technologies such as social media will be employed in engaging and delivering the pizza to the customers.

SWOT Analysis

The following table summarizes the strengths, weaknesses, opportunities and threats of Pizza House:


  • )Hartley, 2015Effective use of technology (

  • Speedy production and supply of pizza

  • The owner of the establishment has more than ten years’ experience in the pizza industry

  • Availability of financial resources


  • )Chib, 2012The owner has experience, but the employees may lack the appropriate skills, and experiences (

  • The establishment is still new meaning customer loyalty and perception is still questionable: the customers may not appreciate the products


  • Creating a website that customers may utilize to request for the pizza

  • )Dunn, 2012Increasing the varieties through incorporating new tastes and variety in ingredients (

  • Offering discounted products and targeted products such as family orientated pizza package

  • Increase in the number of competitors

  • Economic and financial crises affect demand for pizza

  • Changing consumer behaviors through preferring healthy products

  • )Garcia et al. 2014Government legislations and regulations (

  • Ineffective supply chain in that the customer orders are not delivered on time and quality of their respective orders

Reference List

ABS. (2011). 2011 Census QuickStats. Retrieved from

, 1(2), 131.International Journal of Applied Services Marketing PerspectivesChib, S. S. (2012). Empirical study pertaining to the effect of price on customer satisfaction with respect to dominos and pizza hut.

Crust Pizza. (2016). Homepage. Retrieved from

Domino’s. (2016). Homepage. Retrieved from

, 20(1), 1-19.Journal of Statistics EducationDunn, P. K. (2012). Assessing claims made by a pizza chain.

, 104(12), e56-e64.American Journal of Public HealthFreeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T., & King, L. (2014). Digital junk: Food and beverage marketing on Facebook.

, 200(6), 340-4.Med J AustGarcia, J., Dunford, E. K., Sundstrom, J., & Neal, B. C. (2014). Changes in the sodium content of leading Australian fast-food products between 2009 and 2012.

(3), 2.23, BusidateHartley, S. (2015). Domino’s dominate with digital design.

IBISWorld. (2016). Pizza Restaurants and Takeaway in Australia: Market Research Report. Retrieved from

Pizza Gusto. (2016). Homepage. Retrieved from