Papa John's

2199 Words Mar 23rd, 2007 9 Pages
For more than 20 years, Papa John 's has been bringing quality pizza and customer service to the restaurant market. While some companies focus solely on the sales of their products, Papa John 's is also intently focused on the quality of their products. You will hardly find an industry quite as saturated as the restaurant industry, but due to Papa John 's philosophy, they have managed to survive in this competitive field. The first aspect to consider when analyzing this industry is the rivalry amongst competition, which is huge in the restaurant industry. While there is an abundance of pizza restaurants, Papa John 's main concern is that of other major pizza chains such as Dominos and Pizza Hut. There are hundreds of pizza shops in …show more content…
Cheese is a huge expense, as well as a necessity, for Papa John 's so they do not have a choice as a buyer. On the other hand, Papa John 's has a little more bargaining power as a supplier. They can adjust their prices as needed as long as they stay within range of their competition, but this once again, is limited. If they raise their prices too high, consumers will just go to another competitor. Papa John 's, along with most companies in this industry, does not have enormous bargaining power as a buyer or supplier. Papa John 's uses differentiation as their competitive strategy. They cannot afford to use cost leadership because of all the low-end pizza shops. With prices nearly twice that of most local shops, Papa John 's has to differentiate their products in order to appeal to consumers. They have done a relatively sufficient job in differentiating themselves from the competition. They always have new and different products such as their Spinach Alfredo and Chicken pizza or their Hawaiian BBQ Chicken pizza. They also offer more variety in their side menus such as chicken fingers, wings and baked goods. Also, Papa John 's was the first pizza chain to offer online ordering. With the internet being such a huge commodity, being able to order online gave Papa John 's a huge competitive advantage over other chains due to the convenience. The best way to evaluate a company 's corporate strategy is by performing an analysis of the