Case Study Papa John's International, Inc. Twenty-First Century Growth Challenges
Case 2: Papa John’s International, Inc.: Twenty-First Century Growth Challenges
1) What is your assessment of Papa John’s differentiation strategy? On what bases does the company differentiate?
There are a number of bases on which Papa John’s differentiates itself, many of which are interrelated. First and foremost is Papa John’s offering of a higher-quality pizza, which not only allows them to differentiate on the basis of a product feature (i.e. the high quality ingredients used in the pizza), but, even more importantly, on the basis of reputation. While most other pizza chains have their sights set on more of a cost-leader/low-price strategy, and make an less genuine statement of quality, Papa John’s entire organizational culture is focused squarely upon the pursuit of “better ingredients, better pizza”. This commitment has in turn endeared it to customer base, and has resulted in a long string of high customer satisfaction ratings.
Papa John’s early adoption of online and mobile ordering technologies allowed it to differentiate itself on the bases of both timing of introduction and distribution channels. Papa John’s was in fact the very first pizza chain to offer both internet- and text-based ordering, and it was able to generate tremendous revenues as a first-mover in these then-untapped channels. Being that Papa John’s is a part of the larger fast food industry, and consumers seek out fast food in large part on the basis of its convenience, the value of such a distribution system obviously lies in how easily accessible it made Papa John’s products.
2) Is Papa John’s strategy sustainable? What is your assessment based on a VRIO analysis? Obviously the most sustainable base of Papa John’s differentiation strategy is its reputation as a producer of high-quality pizzas. Such has been earned through years of commitment to the goal of producing a “perfect pizza”, which is an outgrowth of a strong organizational culture and well-communicated vision. The
1) What is your assessment of Papa John’s differentiation strategy? On what bases does the company differentiate?
There are a number of bases on which Papa John’s differentiates itself, many of which are interrelated. First and foremost is Papa John’s offering of a higher-quality pizza, which not only allows them to differentiate on the basis of a product feature (i.e. the high quality ingredients used in the pizza), but, even more importantly, on the basis of reputation. While most other pizza chains have their sights set on more of a cost-leader/low-price strategy, and make an less genuine statement of quality, Papa John’s entire organizational culture is focused squarely upon the pursuit of “better ingredients, better pizza”. This commitment has in turn endeared it to customer base, and has resulted in a long string of high customer satisfaction ratings.
Papa John’s early adoption of online and mobile ordering technologies allowed it to differentiate itself on the bases of both timing of introduction and distribution channels. Papa John’s was in fact the very first pizza chain to offer both internet- and text-based ordering, and it was able to generate tremendous revenues as a first-mover in these then-untapped channels. Being that Papa John’s is a part of the larger fast food industry, and consumers seek out fast food in large part on the basis of its convenience, the value of such a distribution system obviously lies in how easily accessible it made Papa John’s products.
2) Is Papa John’s strategy sustainable? What is your assessment based on a VRIO analysis? Obviously the most sustainable base of Papa John’s differentiation strategy is its reputation as a producer of high-quality pizzas. Such has been earned through years of commitment to the goal of producing a “perfect pizza”, which is an outgrowth of a strong organizational culture and well-communicated vision. The