The three greatest strategic challenges Papa John’s currently faces are maintaining brand recognition in a saturated market, continuing to produce fresh, quality pizza’s in spite of price limitations, and sustaining their ability to differentiate their pizza chain to maintain their portion of the market share. According to Porter’s Five Forces Model Papa John’s should be concerned with their existing rivalries, threat of substitutes, and the bargaining power of suppliers and buyers (Parnell, 2014).
Papa John’s is in the top three national pizza chains and currently national sponsors of the National Football League and Major League Baseball. Marketing expenses are high as we all know especially when paying high endorsements to top athletes like Peyton Manning. Personally, when we order pizza, Papa John’s is not the first pizza delivery chain that comes to mind. Often we think they are more expensive and we opt for a cheaper option. Papa John’s needs to also consider targeting the millennial generation who tend to be wary of larger corporations and focus on social responsibility activities. The more similar the product within the market consumers will tend to switch back and forth between the options available making differentiation extremely important for Papa John’s since they are more expensive (Parnell, 2014). . …show more content…
With this choice for quality and ultimately better taste, this comes at a cost. Competitors in the industry have chosen to substitute products for lower cost, and at this time Papa John’s has worked with suppliers in order to continue to deliver on their promise of fresh ingredients even with the threat of substitute products from
Papa John’s is in the top three national pizza chains and currently national sponsors of the National Football League and Major League Baseball. Marketing expenses are high as we all know especially when paying high endorsements to top athletes like Peyton Manning. Personally, when we order pizza, Papa John’s is not the first pizza delivery chain that comes to mind. Often we think they are more expensive and we opt for a cheaper option. Papa John’s needs to also consider targeting the millennial generation who tend to be wary of larger corporations and focus on social responsibility activities. The more similar the product within the market consumers will tend to switch back and forth between the options available making differentiation extremely important for Papa John’s since they are more expensive (Parnell, 2014). . …show more content…
With this choice for quality and ultimately better taste, this comes at a cost. Competitors in the industry have chosen to substitute products for lower cost, and at this time Papa John’s has worked with suppliers in order to continue to deliver on their promise of fresh ingredients even with the threat of substitute products from