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Case Study
Organizational strategies
include three dimensions, which are defined as corporate, firm, and business
level. It must be understood that all of these dimensions although seemingly
operate separately- they act are interrelated and assisting the firm to achieve
a competitive advantage.
In this assignment we
will review a case on Papa
Johns ATTACHED
(located in the required textbook, Chapter 6, p.167). Papa Johns is the
3rd largest pizza chain in the US and the company has more than 35,000
locations, which over 600. Papa Johns is a global chain that operates around
the world. However, like many companies Papa Johns have had issues with
rapid turnover, training, and the recruitment of drivers. There are also
other competitive services that has entered the space of delivery services, as
well, forcing Papa Johns to adjust its strategy to remain viable.
The appropriate strategy
of growth, stability, or retrenchment hinges on the firms situation.In this
assignment, you are to read the case in your text. There are also links in your
text that you can refer too. After an assessment of Papa Johns, you should
answer the following questions for this mini case study.
ANSWER
1.
Does saturation of the
market suggest a stability strategy for Papa John's, or are there sufficient
opportunities globally to justify aggressive growth? Explain
2.
To what extent do
low-cost pizza providers pose a threat to Papa John's?
3.
How has Covid-19 affected
Papa John's corporate strategy to maintain a competitive advantage over it's
rivals?
4. Then discuss the applications and limitations of generic business strategies and strategic groups in this new climate.
1.
Does saturation
of the market suggest a stability strategy for Papa John’s, or do the global
opportunities justify aggressive growth? Explain.
2.
To what extent
do low-cost pizza providers like Little Caesar’s and cicis pose a threat to
Papa John’s?
3.
Should Papa
John’s develop eat-in restaurants like Pizza Hut or stick to delivery and carryout
service?
Biz Journals, “Papa John’s Benefitted from Sticking to Its Motto
and a Bit of Luck,” 15 July 2015, http://www.
bizjournals.com/louisville/news/2015/10/30/papa-johnsnext-new-market-is-in-south-america.html.
A. Janofsky, “Fast Food Restaurants Get Creative When They
Go Abroad,” Wall Street Journal, 26 May, 2015, http://www
.wsj.com/articles/fast-food-franchises-get-creative-whenthey-go-abroad-1432318075.
N. Kirsch, “Papa John’s Founder Used N-Word on
Conference Call,” Forbes,
11 July 2018, https://www.forbes.com/
sites/noahkirsch/2018/07/11/papa-johns-founderjohn-schnatter-allegedly-used-n-word-on-conferencecall/#18e3ed864cfc.
D. A. Mann, “Papa John’s Next New Market Is South
America,” Biz
Journals, 30 October 2015,
http://www.bizjournals.com/
louisville/news/2015/10/30/papa-johns-next-new-market-isin-south-america.html.
G. Schneider, “Papa John’s Franchisees Ordered to Pay Back
Wages,” USA Today, 20 October 2015, http://www
.usatoday.com/story/money/nation-now/2015/10/20/ papa-johns-labor-violations/74299592/.
Chapter 6 Corporate-Level Strategies
Mini
Case Study-Papa Johns
Student’s
Name
Institution
Course
Name/Number
Instructor
Due
Date
Mini Case Study-Papa Johns
Yes, saturation is the
market suggests a saturated strategy of Papa John's. It is a strategy in which
a firm focuses on maintaining its current market share. Papa John's can adopt
the approach by concentrating on its existing market and products such as
pizza. The company has several franchises in various countries, some of which
are performing poorly due to local businesses offering similar products at a
lower cost. Olsen Wagner and Thack (2016) pizza outlets are growing faster than
the market growth rate. It has now become a challenge for Papa John's to
attract new customers in a stagnant market. The organization can adopt a
saturated market strategy successfully by supplying the same products to the
existing customers. It is cheaper for Papa John's to maintain the current customers
by providing excellent customer service and after-sales services than
attracting new products or striving to attract new customers.
Low-cost pizza providers
are threatening Papa John's to a great extent. There are low-cost pizza
providers operating independently in their local regions. They compete with
various Papa John's outlets, which are centrally controlled. Their low-priced
products would attract a large proportion of customers whose primary focus is
the prices of the commodity rather than the quality of the items offered. Low-income
earners make the largest portion of clients in the pizza market, and they
centrally shop for low-priced products. So, since Papa John's primary focus is
the quality and freshness of their products, most of its customers would remain
medium and high-income earners whose prime focus is the value for money spent
rather than the product price. It is challenging for Papa John's to attract new
customers because lowering costs to match market forces might result in a loss
that can push them out of the market.
The emergency of Covid-19 has dramatically reduced the number of customers served by Papa Johns, which is its primary source of competitive advantages. Initially, Papa John served customers from several outlets across the globe and therefore...
