Vermont Cheese Pizza Parlor Harvard Case Solution & Analysis

Vermont Cheese Pizza Parlor Case Study Solution

Vermont cheese pizza is a new idea in the market and there is also demand for pizzas purely prepared with Vermont Cheese. But, there would be complications for the new entrants into the market because there are many potential players whohave been operating for 10 years. So, new entrants would have a disadvantage that competitors would easily offer substitute to their products, and gain market share. Since, competitors have more experience, market penetration, product diffusion, customer relations, and most importantly supply chain management.Vermont cheese pizza concept is new in the market, if the business gets started then it would have a positive NPV with an IRR of 27% with a payback period of 2.79 years. But, it would require an initial investment around half million. So, it is recommended that business should be started, but quality of product should be preferred over the price, and price per product should be $17. Competitive price and quality of product would provide space for the company to adjust itself in the market. On the other hand, rapid growth is necessary to sustain and gain market share before a substitute is offered by the competitors.

Strengths and Weaknesses


Vermont Cheese Pizza Parlor (VCPP) would be the first mover into the market, and due to first entrance it could target as much customers as possible because VCPP is the only pizza parlor that provides a variety of pizzas prepared with Vermont cheese only. Since, this idea is not known to the market, it could provide huge target market with innovative products that have never been tested before.

Vermont Cheese Pizza Parlor Harvard Case Solution & Analysis

The vision and mission of the company is clear given that it has to target the customers wholike to test pizza purely made withVermont cheese.And it has clearly defined that number of products would be 12 only with different flavors. This is also a strength of the company that it has a clear vision and mission to whom it has to target and what products needs to be produced for those targeted customers.

Innovative products and a diversified portfolio of products enable the company to penetrate into the market rapidly. It makes the company to penetrate into the market rapidly, and have a competitive advantage over the competitors in terms of disruptive innovation that could disrupt the market and competitors as well.


VCPP has clear a vision and mission but, situations in the market are not so easy. Since, competitor which is operating into the industry for 10 years cannot be compared with new entrant in terms of supply chain management, experience, market penetration, products diffusion, and customer relationships.Similarly, new entrant’s unfamiliarity with the market would lead to situations such as ineffective management of resources, and being less cost effective and also lower customer satisfaction.

These weaknesses could lead to low growth into the market because the company would have many competitive barriers imposed by the key players. These barriers might be either cost effectiveness, lowering prices or introducing substitutes to the customers. However, the supply chain management in the food industry is very important because the quality is the most important factor in this industry. So, VCPP might not be competitive in forming or maintaining the supply chain effectively due to unfamiliarity with the market and having no experience.

Threats and Opportunities


VCPP could grow rapidly into the market because it has various products that are not known to the market. Products would have high penetration since many customers have liked the variety of pizzas presented to them. So, pizza purely made from Vermont cheese is supposed to take over the market as a whole. There are many opportunities for the VCPP that it could avail from the market such as increasing product line, and attracting more customer base.

On the other hand, VCPP could also extend the relations with the suppliers to increase its presence in different cities. Also, the relation with supplier would enable VCPP to grow rapidly into the market, and increase the target market size consistently. It would increase the customer base and enable the company to grow rapidly.


It is a threat for the VCPP that demand for the products declines or there is low demand for the products produced due to increased competition. Therefore, competitive prices of the pizzas might work some time. Therefore, being competitive into the market for VCPP would not be so easy due to the increased competition and entry barriers. The threats for VCPP are that it might be unable to form strategic partnership with the supplier, and be competitive into the market given that there is high competition and entry barriers.


Market analysis

          Value and Strategy

VCPP is the first mover in the market and it has higher risk to face competition from the competitors because, the competitors into the market might come up with substitutes to VCPP’s products. Competitors in the market have huge experience in the pizza industry and they know when to produce and how to penetrate the product. There is higher risk that VCPP might be over taken by competitors in the market................

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