Premium Essay

Papa Johns Case Analysis

In: Business and Management

Submitted By droulan
Words 593
Pages 3
Danielle Heyde
MGMT 441
Papa John’s Case
Papa John’s Inc. Papa John’s has grown exponentially since it was started in 1985, however with management changing hands, and the economy changing there are some issues that lie within the organization. If Papa John’s wants to open 200-300 stores per year they have to do something different. The pizza industry is very mature and becoming saturated so in order to gain a competitive advantage they have to differentiate themselves from others in the industry. Earnings and sales are much slower in industries that are mature than those industries that are emerging. The barriers to entry are very low for the pizza industry, anyone can open up a pizza place which will create a new competitor.
Individuals have a lot of choices when it comes to eating out so in order to grow exponentially something needs to set them apart from others since their “better ingredients, better pizza” strategy is no longer holding up. So what can Papa John’s do to set themselves different from everyone else? They can begin by refining their existing product line and expand to different lines. By improving the quality of their existing products and ultimately creating the best pizza possible it is going to take trial and error, ask the consumers what they like/do not like about the pizza. They could begin to expand their lines of service by developing a new chain of restaurants or begin to sell their unique garlic dipping sauce in grocery stores, which would help bring in more revenue.
In order to have a product that is costly to imitate and raise the barrier to entry Papa John’s needs to improve the efficacy of their distribution channels. Since their main focus is having the best ingredients possible it is important to get the best, however it comes with a price. Cheese makes up nearly half of their food costs, so they need to come up with a...

Similar Documents

Premium Essay

Papa Johns

...MGT 406 Case Study Papa John International 2007 Identification of competencies The 4 different competences of Papa John’s International include its focus on providing high quality products, operating system, marketing and franchise system. Providing High Quality Products Firstly, Papa Johns’ focus on providing pizzas of superior quality to its customers has laid down the foundation for its success in the long run. Unlike its competitors who focused on cost reduction, Papa Johns focused on differentiating its pizzas. In fact, they were also able to prove in court that they used fresh and better ingredients in comparison to its competitors. This allowed Papa Johns to be rated number one in terms of customer satisfaction among all pizza chains in USA. Applying the VRIO framework, it can be said that this focus provided value to the company owing to its many benefits. Although a restaurant chain selling pizzas was not rare, selling pizzas of such high quality was not common. At the same time, this is not easily imitable by companies because focusing on higher quality will need a major shift from their current procedures and marketing strategies. Furthermore, Papa Johns has been extremely organized in exploiting this competence to its benefit. Hence, as this competence fulfills all the criteria of the VRIO framework, it is both a core and a distinctive competence. Operating System Papa Johns’ efficient operating system is also considered to be one of the competences as...

Words: 2081 - Pages: 9

Premium Essay

Papa Johns

...Industry Analysis Porter’s Five Forces • Competitive intensity within the industry o Compared to nationally owned pizza restaurants rivalry is high. o Compared to locally owned restaurants rivalry is high. • Threat of new entrants o Threat of new entrants from nationally owned pizza restaurants is high because they have the capital to open multiple units. o Threat of new entrants locally is low because of the high cost involved to open a new pizza restaurant. • Threat of substitutes o There are many choices for consumers to purchase pizza from locally owned to national chains therefore the threat of substitutes is high. • Bargaining power of buyers o With the multiple outlets available for consumers the bargaining power of buyers is high because if prices are too high they will shop elsewhere. o Additionally, many consumers switch between pizza restaurants because they choose the outlet with the best coupon. • Bargaining power of suppliers o The bargaining power of suppliers is low for the nationally owned pizza restaurants so they can demand lower prices. o The bargaining power of suppliers for locally owned pizza restaurants is high because they do not buy in large quantities. • All things considered, Porter‟s Five Forces are high so the industry may not be as profitable or attractive. However, in any case, the techniques implemented by successful, market players after provide them with an opportunity to leverage their business......

Words: 1898 - Pages: 8

Premium Essay

Papa John's Case Study

...Introduction The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products. This case analysis will examine the company’s initial meteoric growth, leveling performance in recent years while attempting to foreground the challenges faced by Papa John’s and evaluate the strategic options and possible responses to pressures through an evolved product differentiation and growth strategy. Internal/External Environment & Pressures Internally, the company had enjoyed astronomic growth since its inception in the mid 1980s, but began to see the impact of a slowing U.S. and world economy in 2008 that began to put pressures on the company’s year-over-year growth and profitability. The time period referenced in the case indicated that Papa John’s in 2007 had 14.8% market share of the $13.5 billion pizza food service market. Despite showing profits each year on its income statement, the year-over-year growth numbers were nowhere near......

Words: 1573 - Pages: 7

Premium Essay

Papa John Hbs Case Study

...Case Assignment 1: Papa John’s International, Inc.: Twenty-First Century Growth Challenges Inverted broom closet in a hometown lounge. He called it Papa John’s. Today, there are over 2,500 locations across the North America, South America, Africa, Europe and Asia. While Papa John’s has done a very good job with their forward thinking strategies, there are still some avenues to be explored to keep them competing as one of the world’s best pizza chains. During the first year of the company’s inception, John was able to grow his business from one store to eight, and generate $500,000 in revenue. While Papa John’s may not have had true first movers advantage (Pizza Hut opened in 1958), they did have a distinct advantage when it came to product differentiation. Papa John’s prided themselves on “better ingredients” making a better pizza, which is something they stand by to this day. This selling point is what gave them an advantage over the likes of Pizza Hut, or Dominoes (est. 1967), and made it possible for them to enter the market. One of the early strategic moves made by John was to implement a hub-and-spoke type “commissary” (or quality control center) that was responsible for delivering ingredients, supplies, and dough to a number of stores in the surrounding geographic location. This allowed John to ensure the quality of the food being served. These centers were key to early expenditure and quality control, but would be hard to sustain in future expansion due to......

Words: 1707 - Pages: 7

Premium Essay

Papa John's Case Analysis

...Ingredients. Better Pizza. Papa John’s. Better Ingredients. Better Pizza. Papa John’s. Papa John’s Case Analysis Papa John’s Case Analysis Table of Contents Appendix2 Exhibit 13 Exhibit 24 Exhibit 35 Exhibit 46 Exhibit 57 Exhibit 68 Exhibit 710 Exhibit 810 Exhibit 914 Exhibit 1015 Recommendations16 Appendix Introduction * Pizzerias represent 17% of all restaurants worldwide. In the United States alone, 93% of Americans eat pizza at least once a month. * Papa John’s Pizza is the number three pizza chain in the world with 6.3% market share, trailing only behind Pizza Hut and Domino’s. * Papa John’s first location opened in 1984 by John Schnatter, who is now known as “Papa John.” He previously sold pizzas from the broom closet of his father’s restaurant. * Papa John’s prides themselves on “Better Ingredients. Better Pizza. Papa John’s.” As a result, Papa John’s focuses on ingredients rather than expanding the menu. * Papa John’s has 628 company-owned and 3,255 franchised establishments in every state in the United States and in 32 countries. * However, the pizza industry has seen changes take place. * Unlike any time in the past, people are more health conscious and worry about what and how much they eat. * Technology has also caused changes in the industry due to social media and smart phone apps being used as a tool to reach customers. * Papa John should recognize......

Words: 3739 - Pages: 15

Free Essay

International Management

...EXECUTIVE SUMMARY Mamas & Papas was established in 1981 by Italian entrepreneurs David and Luisa Scacchetti. Mamas & Papas has grown as a family business to become the UK’s number one nursery brand. The company has turnover in excess of £120 million, and continue to expand domestically and internationally in order to fulfill the mission to be the number one global nursery brand. Mamas & Papas have over 30 stores in UK. They also trade with Independent specialists in the UK and through international retail partners. Their International Franchise operation started with the opening of several stores across the Middle East in 2007. The company now spots the opportunities in South East Asia marketplace. Thailand is a very outstanding country in this region; the advantages bring attraction to foreign investors, especially for Mamas & Papas. This opportunity somehow matches with the company’s mission perfectly. Wide range of products and unique services provided by Mamas & Papas can be their internal strength in terms of internationalize to Thailand. Good economic environment in Thailand also can be great opportunity for the company to be successful in franchising. With Thailand Foreign Business Act, that not allows foreigners to invest in any companies more than 49% will limited the Mamas & Papas entry strategy into the form of franchising. Mamas & Papas will use their strength in products and services in terms of franchising to Thailand. In......

Words: 5336 - Pages: 22

Premium Essay

Analysis

...EXECUTIVE SUMMARY S. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CONTENTS EXECUTIVE SUMMARY MARKETING STRATEGY OF PIZZA HUT HISTORICAL HIGHLIGHTS OF PIZZA HUT CUSTOMER FOCUS COMPETITORS STRATEGY INDUSTRY ANALYSIS SCANNING THE INTERNAL ENVIORNMENT MARKETING STRATEGY PRODUCT STRATEGY PRICING STRATEGY PLACE STRATEGY PROMOTION STRATEGY GLOBAL STRATEGY BIBLOGRAPHY APPENDIX PAGE 5 6 7 10 14 19 22 26 27 32 36 39 50 54 55 2 Pizza Hut, the world’s largest Pizza chain with over 12000 pizza restaurants and delivery outlets worldwide has the vision of becoming the best branded restaurant with the best delivery and franchise network thereby providing the best food and best value to the families. Pizza Hut as a company has always tried to target and satisfy various diverse customer categories in different countries depending upon various factors and situations. Pizza Hut in order to fulfill its marketing objective of maximizing customer satisfaction by providing high quality products, has believed in the following marketing strategy: “Think Global, Act Local” Pizza Hut has tried to target each and every diverse population segment either on the basis of age (kids, teenage, office goers, senior citizens) or on basis of lifestyle (singles or couples) or special interest groups (celebrations, parties, festivals). As a part of the marketing strategy, Pizza Hut follows total market strategy along with international market strategy coupled with early entry......

Words: 7288 - Pages: 30

Premium Essay

Research of Kfc

...Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also used for student presentations......

Words: 6023 - Pages: 25

Free Essay

The Three Major Retail Companies Mission, Vision and Values

...favorite is “better ingredients; better pizza, Papa Johns” I love pizza. Like wise large retail discount stores and chains such as Wal-Mart, Target and Kmart for example all have a company mission, vision, and value’s statements which help them to perform at optimum levels of operations. Missions, vision and value statements: the overall goal is to provide the organization with their purpose; which is the case for these retail chains in the U.S. The mission, vision and value statements aid each chain to define their brand, culture, and consumer relations. Each retail chain differentiates them-selves by providing unique good and services to their consumers, more-over their mission, vision and values statement must also be unique, enabling them to stand out form each other. The big players in the discount retail market are Wal-Mart, Kmart, and Target. (retailindustry.about.com) Supporting Paragraphs Both mission and vision relates to an organization’s purpose and are typically communicated in some written form. Mission and vision are statements from the organization that answer questions about which we are, what we value, and where we’re going. (Coffman, Freire, Heaver, & Soltis, 2002) Mission statements are often longer than vision statements. Sometimes mission statements also include a summation of the firm’s values. (Cady, Wheeler, DeWolf, & Brodke, 2011, p. 70) Values are the beliefs of an individual or group, and in this case the organization, in which they are......

Words: 1607 - Pages: 7

Premium Essay

Case Analysis Project, Mcdonald’s Corp,

...Case Analysis Project, McDonald’s Corp, Introduction McDonald’s Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company was founded by brothers Richard and Maurice McDonald when they opened their first restaurant in San Bernadino California in 1948. At the time, McDonald’s core business was inexpensive and fast food, burgers, fries and shakes. The present corporation dates its founding to the opening of a franchised restaurant by businessman Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965. Today McDonald’s has grown to become is the world's largest chain of hamburger fast food restaurants, serving more than 70 million customers daily in 119 countries across the globe. As of December 31, 2013, the company operated 35,429 restaurants, including 28,691 franchised and 6,738 company-operated restaurants. It ranks 111 in Fortunes top 500 companies, with revenues of usd$28.1B at the end of calendar year 2013. Problem Statement McDonald’s problems started in the 1990s as a result of rapid global expansion at the expense of service, cleanness, and quality. Solving for cleaning up stores and improving service were short term fixes. CEO Skinner......

Words: 3720 - Pages: 15

Premium Essay

Nick's Pizza Case

...Final case analysis: Nick’s Pizza & Pub Final Case Analysis: Nick’s Pizza & Pub Viet Hoang Nguyen Arkansas State University 06.12.2015 Purpose The purpose of this paper is to analyze Nick’s Pizza & Pub business situation, as long as the issues of the company at that point of time. There are a few things to talk about including Strategy, Success Factors, Business Goals, Leadership, Employee Selection, Employee Training, Employee Compensation and Motivation, Business Controls, some other factors, and the summary of the paper. Introduction Nick’s Pizza & Pub is one of the most famous restaurant in the US, which having 2 locations up until now. They had a great start in business with not only good sales, but the value in their products. With 1,500 customers waiting for their table on a Friday night, along with carry out, it’s a start that many new company would dream of. Unfortunately, their plan to open a few more locations was unsuccessful due to losing customers, along with decreasing in total revenues. Even though, inventory was not a problem, but management was discovered as the main issue. Despite managers were hired externally due to their previous experience in the business, their work cultures were not good enough for the company. In short, they need to find solution to reduce costs, and change the way of management in the company. Strategy Pizza is a popular food in the US, so combine both dine-in restaurant with pub bar is a great idea.......

Words: 2101 - Pages: 9

Premium Essay

Domino's Pizza Scenario Planning

...Domino’s Pizza Executive summary: Domino’s Pizza is a most important pizza shop in UK and in the world serving one of the best quality pizzas while establishing and maintaining the health standards by using freshly made dough and other products. The plan was to make Domino’s Pizza a well-known brand and to be the first choice for pizza lovers. Domino’s Pizza aim is to produce different multiplicity of pizza and allow customers to customise their own choice of pizzas by offering them variety of toppings. While making their own selection of pizzas with a reasonable price and making important offers attracting in new customers. Domino’s quickly became the premium pizza takeaway, serving locals and focusing on all categories of people (student, family, alone person ...). An exciting menu of 14 different pizzas with an option of having four diverse range of dough. The main aim of Domino’s pizza is to make best quality pizzas and offer best value for the customer, so their values are summed up: “Sell more pizza, have more fun!” Mission: The mission of Domino’s Pizza is to be the best pizza delivery company in the world. Domino’s offers the finest customer services. So, Domino’s pizza has a passion to serve delicious pizzas. Vision: Domino’s Pizza wants to be the pizza first choice in the world that is says to detain half of pizza’s market. They aim to open 50 new stores each year. So today, they are working towards their goal of opening 1,000 stores by......

Words: 6499 - Pages: 26

Premium Essay

Business P4

...rationale with supporting evidence. The supporting evidence will show appropriate research and detail and be appropriate for the local area. 1. Research possible gaps in the market. Give a list of the types of businesses that exist in the local area. Try and detail three services that are not currently offered in the local area that you think will be a success Businesses In The Area Businesses Not In The Local Area Coffee Shops (Costa, Café Nero, Starbucks) Juice Bars Restaurants (Prezzo, Urban Kitchen, Pizza Express) Salons (Waxing’s and Nails) Clothes Shops (Jack Wills, Fat Face, White Stuff) Larger Chain Stores (Topshop, Next, New Look) Home Shops (Home Living, The Shed, The Lemon Tree) Estate Agents Take-Away Shops (Pizza Hut, Papa Johns) Electrical Shops (PC World, Curry’s, Apple) Super-Markets (Morrison’s, M&S) Furniture Shops (IKEA) Hairdressers (RUSH) Jewellery Shops (Samuels) 2. Select a possible good or service: Features of your product; briefly explain what your product or service is going to be. My business is going to be a juice bar. The customer can choose their fruits/ingredients you put into the juice. The drink can be ordered to be take away or drink in. Trends in demand; what are the popular goods and services that people are buying at the moment. Population changes; compare how big the population was in 1990 to now. In 1990 the population was 5,278,639,789. Compared to now the population is 7,303,708,210. That is an increase off......

Words: 2140 - Pages: 9

Free Essay

The Game - Neil Strauss

...DJ Monkeyboy (http://www.djmonkeyboy.com). "The Randall Knife": Words and Music by Guy Clark © 1983 EMI APRIL MUSIC INC. and GSC MUSIC. All Rights Controlled and Administered by EMI APRIL MUSIC INC. All Rights Reserved. International Copyright Secured. Used by Permission. In order to protect the identity of some women and members of the community, the names and identifying characteristics of a small number of incidental characters in this book have been changed, and three minor characters are composites. THE GAME COPYRIGHT © 200 5 BY N E I L STRAUSS. All rights reserved. Printed in the United States of America. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, address HarperCollins Publishers Inc., 10 East 53rd Street, New York, NY 10022. HarperCollins books may be purchased for educational, business, or sales promotional use. For information please write: Special Markets Department, HarperCollins Publishers Inc., 10 East 53rd Street, New York, NY 10022. FIRST EDITION Art direction and design by Michelle Ishay / Richard Ljoenes Cover design by Richard Ljoenes Interior design by Kris Tobiassen / Richard Ljoenes Interior...

Words: 151995 - Pages: 608

Free Essay

No Title

...Global Journal of Computer Science and Technology Interdisciplinary Volume 13 Issue 2 Version 1.0 Year 2013 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 0975-4172 & Print ISSN: 0975-4350 Ethical Issues in Computer use: A Study from Islamic Perspective By Abdul Kadar Muhammad Masum International Islamic University, Bangladesh Abstract - Computer users are continuously facing ethical challenges as society adopts new and increasingly complex tools and technologies. These ethical challenges can be managed by Islamic code of life. In this paper, we have studied and tried to identify, how computer affects the ethical issues of the society. In this regards, we have traced some highly related issues to the ethics of computer usage, namely – misuse of time, honesty and integrity, privacy, security, intellectual property right, and computer crime. We have also tried to explain these issues in the light of Qur’an and Hadith. At the end of this paper, we have also suggested some measures that can help in promoting proper use of computer facilities by the Muslim masses without compromising the Islamic principles. Keywords : islamic ethics, computer ethics, privacy, security, computer crime. GJCST-G Classification: K.8.m Ethical Issues in Computer use A Study from Islamic Perspective Strictly as per the compliance and regulations of: © 2013. Abdul Kadar Muhammad Masum. This is a......

Words: 5242 - Pages: 21