The Piza Wars

Question 1: Does BSB, Inc. enjoy any competitive advantages or distinctive competencies?

BSB’s competitive advantage is close proximity to the customers. Though 43 percent of meals are eaten off campus, 57 percent of meals are still eaten at BSB’s facilities. For pizza delivery the close proximity is critical, as it allows for quicker delivery. In addition, delivery can be done at a lower cost because bikes can be used.

BSB’s distinctive competencies are the location of facilities and market know-how. Being on campus, BSB can provide delivery service quicker and at a lower cost. In addition, by being on campus, BSB is closer to the customer base, which allows Kershaw, the manager, to be more knowledgeable of her customer’s needs. She employs environmental scanning, such as the customer surveys, to keep abreast of her market.

Question 2: Initially, how did Renee Kershaw choose to compete with her pizza operations? What were her competitive priorities?

Initially, Kershaw chose to compete on delivery service and price. She used quick delivery as a key selling point. In addition, without a reasonable price, she could not compete with the off-campus pizza companies. In effect, her order qualifier was price, and her order winner was service.

Her initial competitive priorities for pizza were delivery speed and price. Her on-campus location and limited standard toppings make these priorities possible. Unfortunately, this policy limits the variety of pizzas available. The increased requests for additional topping combinations and the leveling of sales suggest this policy may be hurting BSB.

Question 3: What impact will the new food court have on Kershaw’s pizza operations? What competitive priorities might she choose to focus on now?

The new food court introduces new competition that has the same on-campus advantage as BSB. In addition, these companies can also provide products at reasonable prices, but unlike BSB, they have brand names. Her...