Based on Your Analysis of the Ease of Entry into the Pizza

question 32

Essay

Based on your analysis of the ease of entry into the pizza segment of the restaurant industry, your friends have decided to move forward with their plan to open a pizza parlor and delivery service within walking distance of your campus. Before they finalize the product mix for their restaurant, they have asked you to identify the competitive pressures stemming from the threat of substitutes for the pizza segment of the restaurant industry. What would your report to them include?

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Definitions:

Total Revenue

The total amount of money a firm receives from the sale of its goods or services, calculated as the quantity sold multiplied by the price per unit.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or production.

Total Revenue

The total income received from sales of goods or services before any expenses are subtracted.

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.