Papa John's Pizza Case Study

814 Words 4 Pages
Papa John’s Pizza currently faces many challenges, one of the greatest strategic challenges is maintaining its market share and competitive advantage. For 14 of the past 16 years, consumers have rated Papa John 's No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI) (Papa John’s International, 2015). Customer loyalty comes from customers getting a product or service that they are so pleased with that they wish to purchase it again. Papa John’s does not compete with the other big pizza chains in pricing. They openly admit that they charge more for their pizza because of the claim that they provide better ingredients and make a better pizza. They currently offer products that have …show more content…
While this does not appeal to all customers, it is designed resonate predominantly with millennials and busy mothers (Madhani, 2016). Papa John’s assumes that millennials are very health conscious and that busy mothers want to provide their families with a nutritious meal with the freshest and healthiest ingredients possible. During a time where our economy is uncertain, people are looking to save money everywhere they can. If Papa John’s is not able to convince consumers that better ingredients equate to a better pizza they will potentially lose business due to the extra cost associated with their product. Their competitive advantage is that they offer better ingredients and make a better pizza. When all of the competition offer very similar products, consumers are likely to shift from one to the other without any type of loyalty. Because Papa John’s product is not highly differentiated, it is important that they refine their current available options to ensure that they are offering the most sought after and highest quality product on the market if they want to attract customers. To maintain their current market share, Papa John’s will need to ensure that they stay abreast of the market and the changes that are …show more content…
There will always be markets that perform better than others. Strategically, organizations must be aware of where they are making and losing revenue. As hard as it is; there comes a time when an underperforming and unprofitable store must be closed. According to Parnell (2014), Papa John’s had to close unprofitable stores in 2003 and 2004. As an organization, Papa John’s is responsible for making sure that their stores are profitable and their franchises are successful. The goal of any industry is to grow and expand, but it is extremely important that they occasionally take a step back and evaluate what is working and what isn’t. This may then lead to closing of some of their locations or making changes to management that are not always

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