A recent article says Pizza Hut has entered the market for sandwiches. It is strange that the chain has chosen to enter a market dominated by Subway. But, consumer’s have more choice. They can go to one place and get all that they want. It will increase revenue but will the costs go up more than proportionately? OM logic says no. The same fixed costs except for the initial advertising. The supply chain can carry the material for the new product by piggy backing on the old one.
