Papa John's Case Analysis Essay

1357 Words Mar 29th, 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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Papa John’s could capitalize on the new item addition in the short run by adding various types of pizzas and crusts. In the long-run they could add sandwiches, salad and pastas that would better serve the customers’ needs.
Opportunity 2: Locations
Justification
Papa John’s is still considered a newer pizza company; they have not yet saturated the market for the quality product that is served.
Papa John’s can open more stores in the market they are currently in. In the future they can open in markets they are not yet operating in.
Opportunity 3: Strong Brand Recognition
Justification
Papa John’s has a strong customer following across the United States as a result it needs to exploit its brand to gain more customers and to keep it their first choice.
Papa John’s could offer coupons to all consumers in the areas in which they operate. In the future they could do more sponsorships and to continue to grow the business in the untapped markets.
19. What are the threats of the organization? Threat 1: Competitions Larger Menu Justification Papa John’s competition offers a variety of items on their menu. Where Papa John’s only offers a select choice of pizza, appetizers and drinks.
To prevent the limitation of capabilities Papa John’s needs to offer new and exciting menu items to continue to focus on their motto “Better

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