Papa Pizza Case Analysis

1186 Words5 Pages
On September 29, 1983, John Schnatter had the opportunity to manage a failing tavern in Jeffersonville, Indiana (Wolfson, 2013). Seven month later, Schnatter turned a broom closet into a pizza oven, which was the start of what will eventually become one of the largest pizza chain restaurants in the world (Smith, 2016; Wolfson, 2013). To better understand Papa John’s history and current operations, it’s strength, weakness, opportunities, and threats (SWOT) must be analyzed, along with its financial position, which will guide the company to continued success in the twenty-first century.
History
Although Schnatter has been working at various pizza restaurants since he was fifteen years old, he initiated the idea to open his own pizza
…show more content…
As a result, the pizza chain went public in 1993 with two hundred thirty-two stores (Schnatter, 2017). Additionally, Papa John’s accelerated their growth in January 2002 by being the first national pizza restaurant to implement an online ordering system (Myers, 2015). Nevertheless, the corporation went through several crises that included a lawsuit from one of its competitor, Pizza Hut (Addams, 2016).
Addams (2016) stated that in 1997, “Pizza Hut filed a lawsuit against Papa John’s logo and brand for making false advertising” (Trivia section, para. 3). Even though the court initially ruled in support of Pizza Hut’s claim, the decision was overturned on appeal in favor of Papa John’s (Addams, 2016). Besides the Pizza Hut’s lawsuit, Papa John’s experienced a decline in sales for the first time in the early 2000s and thus, the organization “laid off 45 people at its headquarters” in 2004 (Wolfson, 2013, Learning the Business section, para. 23). Moreover, the company’s national headquarters was forced to save money by turning off the heat (Wolfson, 2013). These changes in the business prompt its founder (i.e., Schnatter) to relinquish his position as chief executive officer (CEO) in 2005 (Wolfson, 2013). However, Schnatter was able to return as CEO in 2008 and positioned the corporation as one of the largest pizza restaurants in the United States by more than tripling its stock price from 2008 to 2013 (Wolfson, 2013).
SWOT Analysis

More about Papa Pizza Case Analysis

Get Access