Is web ordering shifting the market share to national chains ?

An article in the Wall Street Journal titled “Big Pizza Chains use web ordering to slice out a bigger market share” (February 6,2014), describes an increase in the market share for large pizza chains to 52% from 47% in 2009, with a corresponding drop for independent stores from 31.5% to 29%. The article suggests that young consumers are drawn to the flexibility of internet ordering and others like the flexibility to take the time to make up their mind by examining alternative menu options on the web. But some independent pizza chains are responding with unique offerings of gourmet or wood fired oven pizzas to stay competitive. Given the rapidly dropping costs for web enabled ordering, will you expect this competitive advantage for large chains to disappear ? Will a differentiated product offering that caters to local tastes result in more variety for customers to choose from and thus a better outcome ?

About aviyer2010

Professor
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