That approach to the market again is very focused.
They're not going after the average industry-wide demand for
pizza consumption.
They're going after a very particular segment and they're exploiting it.
So they're never going to have a huge share of the market,
they're always going to have a very narrow share.
But Porter's argument is even then they need to choose.
Or you need to choose as an entrepreneur one or the other of these strategies.
And I think you'll see if you look at the strategies of Peter Piper and
Chuck E' Cheese.
That Peter Piper is more of a low cost leader in the family
party pizza consumption segment of the pizza industry.
And Chuck E' Cheese attempts to be more unique or more differentiated.
How do I, or why do I say that?
Well, ChuckECheese, if you go to their website has very elaborate party services.
They provide cakes.
They have extra people there to help with the party.
They have entertainment.
They have these robotic singers and dancers.
They have characters.
Who come out and interact.
They have better games.
The ambience or decor of the restaurants are nicer and so
they charge a little more.
It's a more premium experience.
A more differentiated experience than Peter Piper.
And so, they're attracting a particular segment of the market.
That's demanding this sit down experience with family, with usually party.
Peter Piper is more of the lost cost leader.
The environment in the store is more like a warehouse.
It's very simple decor.
The games might not be the newest.