Papa John's Case Analysis Essay

1360 Words Apr 18th, 2012 6 Pages
Case Analysis
Papa John’s
14. What are the current production and purchasing (functional) strategies?
Papa John’s currently follows a low cost differentiation strategy for its production policy.”The low cost differentiation strategy concentrates on quality in operations when the cost of doing so is real low.” (Parnell, 2008). Papa John’s manufactures its own sauce and dough in their quality control centers to ensure quality. They also purchase all of their fresh ingredients from their quality control centers. By doing this they are saving on cost and ensuring their product will be of the best quality. The Company’s domestic QC centers consist of 9 full-service regional production and distribution centers and one distribution-only
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Most have varying lay-outs and do not allow the customer to see throughout the store, it also enable the employee to not be able to see throughout the store and as a result can affect the customer response time.
17. What weaknesses exist for the organization?
Weakness 1: Limited Menu Items
Justification
Papa John’s only offers a few items on their menu compared to that of their competitors. As a result a customer that wants more variety to meet the needs of the entire family may turn to the competition.
Offering only appetizers, pizzas and drinks Papa John’s may be losing customers to the competition which offers salads, sandwiches, pasta and pizza.
Weakness 2: Location
Since Papa John’s is relatively new to the pizza market, they have not reached the level of their competitors. Most of Papa John’s competition has doubled the amount of stores. This is the result of Papa John’s not being able to serve such a large market as its competitors.
Weakness 3: Switching Costs
Justification
Papa John’s does not saturate the market with coupons in the mall as its competitors. Papa John’s sends coupons to customers who have previously ordered from them. As a result of this Papa John’s does not have coupons relatively available as often as its competition.
The pizza industry does have its loyal brand customers, however many will go with the company who offers a coupon. The switching cost for consumers is extremely low considering that calling Papa

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