Pizza Wars
Gustav Jiang owned a pizzeria, Gandhi’s Pies, in Lincoln Park, near DePaul University in Chicago. There were four competing pizza joints within six blocks of his store. The pizza had only served foot traffic since opening its doors 10 years earlier and had been a profitable enterprise: but the sight of another pizza shop opening its doors concerned Gustav. The fourth shop, 3.14 Pizza, which appealed to math majors, had cut some of Gustav’s business, and d the impending opening of Wireless Pizza, a combination Internet café and dining establishment, threatened him even more.
Prior to 3.14 opening, Gandhi use to sell 60 pizzas per night. The past year had seen a drop to 47 pizzas per night. Gustav estimated the nightly business of his present competitors as follows
Ghandhi’s 3.14 P. Hut Hippies
2006 47 31 80 36
2005 60 __ 75 44
For the first time, Gustav was about to introduce pizza delivery. He estimated that half of his customers came from DePaul’s dorms and the rest were people who lived in the neighborhood. In the summer, he would deliver on bicycles, and he purchased a covered motorcycle for winter deliveries.
What else could Gustav do to create operational advantages to help his business?
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