...Introduction The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products. This case analysis will examine the company’s initial meteoric growth, leveling performance in recent years while attempting to foreground the challenges faced by Papa John’s and evaluate the strategic options and possible responses to pressures through an evolved product differentiation and growth strategy. Internal/External Environment & Pressures Internally, the company had enjoyed astronomic growth since its inception in the mid 1980s, but began to see the impact of a slowing U.S. and world economy in 2008 that began to put pressures on the company’s year-over-year growth and profitability. The time period referenced in the case indicated that Papa John’s in 2007 had 14.8% market share of the $13.5 billion pizza food service market. Despite showing profits each year on its income statement, the year-over-year growth numbers were nowhere near what...
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...Papa John’s Pizza John Schnatter began selling pizzas out of the back of his father’s tavern in 1983, and opened the first Papa John’s one year later. He began to grow Papa John’s on the ideas of superior customer service, a quality product, and keeping a limited menu. As of 2012, Schnatter has grown Papa John’s to the third largest pizza chain in the world. Over time Schnatter has realized that he must expand his menu to keep up with the other pizza chains. He has also had to keep up with the advancing of technology such as applications for smart phones and online ordering. He has also had to deal with the unstable economy and the recent health craze in the United States. After a thorough examination of the pizza industry, I have put together a complete industry and company analysis to assess Papa John’s current market position and determine its potential for success in the future. In performing this analysis, I have developed three recommendations for the continued success for Papa John’s in the future, and help them over take Domino’s and Pizza Hut as the market share leader. Recommendation #1: Expand Menu to Add Healthier Options * When John Schnatter started Papa John’s, he ran on the business idea of keeping a limited menu; however as he watched other pizza chains add items to their menus, he expanded Papa John’s menu * As stated in exhibit 3, consumers have started to try and eat healthier in recent years * Papa John’s has added chicken and wings...
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...“Papa John’s Pizza – Better Ingredients. Better Pizza.” This is the brand promise of Papa John’s International and the foundation of a careful mix of business strategies used to stand out from, and remain ahead of the competition. Papa John’s was established by a young entrepreneur that had the idea of creating a “better pizza” and with his passion and creativity, created “the third largest pizza company, with more than 2,800 pizza chain restaurants.” Papa John’s International, Reference for Business Encyclopedia of Business, 2nd edition, Oe-Pa. To achieve the goal of better pizza Papa John's has focused on the pizza eschewing pasta and sandwich items. In one article the author points out that everyone involved in the pizza business pretty much shares the techniques and activities needed to be competitive at the operations level: "Since there is no real secret to getting into and being in the pizza business all players basically have shared knowledge of what the competitive advantages are that each could hold". "The Associated Press (2009) Papa John’s successful strategies position themselves in the pizza market by offering reasonable prices, great quality, great service, and a selected menu, which aids in helping in becoming better than the competition. According to CEO Niegel Travis, Papa John’s focused on product quality and service which ensure profits. The trade-off is to avoid discounts, but by focusing on the quality of their ingredients, Papa John’s has successfully...
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...Introduction Papa John’s is a well-established International franchise restaurant chain from USA and it is the 3rd largest pizza company in the world, with headquarters in Jeffersontown, Kentucky, near Louisville, USA. Papa John’s was founded by John Schnatter. When he was a high school student John had a part time job which is working at a local pizza pub in Jeffersonville, Indiana, he felt that there was something missing from national pizza chains which is a superior-quality traditional pizza delivered right to the customer’s door. To fill that void in 1983 John picked up his business degree from Ball State University and later on in 1984, John opened his first pizza restaurant named Papa John’s Pizza and Papa John's has been going strong ever since. Today, Papa John's is the recognized leader of the pizza category and now owns or franchises more than 3,500 restaurants in all 50 states and 29 countries. More than 25 years later, one thing remains the same – Papa John's is still fully committed to delivering on its brand promise of "Better Ingredients. Better Pizza." For 10 out of the last 11 years Papa John's has been rated number one in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Besides pizza, Papa John’s also serves other menu such as pasta, soup, appetizer and also rice. It may be the same with other restaurants that serve pizza, but in Papa John’s quality is their main priority. In Malaysia, Papa John’s has 19 outlets...
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...Papa John’s Achieves 10-15% Reduction in Freight Spend in 6 Months Supply Chain Process Platform improved overall visibility, reduced outside storage costs and inventory levels, improved DC efficiencies and transportation utilization, reduced mileage and labor costs. April 16, 2014 When you’re one of the largest pizza companies in the world, with more than 3,000 restaurants, maintaining efficient, cost-effective operations throughout your supply chain is essential to continued success. Even though growth was on the fast track, Louisville, Kentucky-based Papa John’s International, Inc. was still hampered by supply chain inventory, visibility and accuracy challenges that were impacting its businesses. “We were having to use outside storage for inventory that ended up being written off because its shelf life ran out before we could ship it to the restaurants,” says Susan Kinder, director, operations services. “That created a domino effect that caused us to pay too much for everything in the supply chain. But without visibility, we had no way of knowing how those truckload orders were impacting everything else.” The company was also facing what Kinder calls “a perfect storm” of substantial increases in commodity prices, fuel and the minimum wage—three critical elements in the food and restaurant industries. Complicating those challenges were Papa John’s ongoing limited-time consumer offers, which require immediate supply chain responses to temporary spikes in demand. Without...
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...MGT 406 Case Study Papa John International 2007 Identification of competencies The 4 different competences of Papa John’s International include its focus on providing high quality products, operating system, marketing and franchise system. Providing High Quality Products Firstly, Papa Johns’ focus on providing pizzas of superior quality to its customers has laid down the foundation for its success in the long run. Unlike its competitors who focused on cost reduction, Papa Johns focused on differentiating its pizzas. In fact, they were also able to prove in court that they used fresh and better ingredients in comparison to its competitors. This allowed Papa Johns to be rated number one in terms of customer satisfaction among all pizza chains in USA. Applying the VRIO framework, it can be said that this focus provided value to the company owing to its many benefits. Although a restaurant chain selling pizzas was not rare, selling pizzas of such high quality was not common. At the same time, this is not easily imitable by companies because focusing on higher quality will need a major shift from their current procedures and marketing strategies. Furthermore, Papa Johns has been extremely organized in exploiting this competence to its benefit. Hence, as this competence fulfills all the criteria of the VRIO framework, it is both a core and a distinctive competence. Operating System Papa Johns’ efficient operating system is also considered to be one of the competences as...
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...Papa John’s Pizza Kerry Hall Saint Leo University Papa John’s Pizza The company and place of work are Papa John’s Pizza. The level of position is that of a delivery driver. The company uses the matrix structure in its upper rank of management and the functional structure in the lower ranks of management within the outlets. The delivery driver position lies in the ranks of the functional structure. Each portion of the organization finds grouping into the purpose for which it serves. For instance, the chefs who prepare food fall under the creative department. The accountants keep track of the transactions regarding the money coming into the organization and fall under the accounting department. In the case of the delivery driver, he falls under the sales and marketing department since he is the one who gets into contact with the customers while making the deliveries. The manager is in charge of all the activities in and the daily running of business. Since the business operated is a small one, the functional structure is effective in addressing the needs of the business. It is reliant on the expertise of the employees in each of the areas of subdivision including the delivery driver. CEO One of the major agency problems affecting the firm is the conflict of interest present between the management and the shareholders of the pizza-based business. With harder economic times for businesses, shareholders have been strict to prevent the management from increasing the...
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... 1 Domino’s Sizzle with Pizza Tracker January 17, 2015 Abstract The purpose of this case study is to exam how Domino’s pizza uses Information Systems to regain their share of the Home Delivery pizza market. I’ll discuss how Domino’s overcome a bad reputation and improved their product and services. I will also discuss the changes and process systems implemented along with where they currently stand in the market and with their customers. I will finish with the technology Domino’s plans to use in the future. DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 2 Domino’s Pizza Sizzles with Pizza Tracker This case study discusses the impact that information systems and global e-business has had on Domino’s Pizzas’ reemergence as an industry leader in the home-delivery pizza market. It looks into what kind of systems are used, how the systems improve business performance, how their online pizza ordering system has improved the ordering process and how the systems are giving Domino’s a competitive edge. Domino’s opened in 1960 and grew to 200 stores in 1978 and currently operates almost 9000 stores worldwide and has the largest share of the approximate $15 Billion/year pizza market. They compete with Pizza Hut, Papa John’s and Little Caesar’s along with local pizza shops. Despite being one of the most well-known brands in the United States, between 2006...
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... 1 Domino’s Sizzle with Pizza Tracker Abstract The purpose of this case study is to exam how Domino’s pizza uses Information Systems to regain their share of the Home Delivery pizza market. I’ll discuss how Domino’s overcome a bad reputation and improved their product and services. I will also discuss the changes and process systems implemented along with where they currently stand in the market and with their customers. I will finish with the technology Domino’s plans to use in the future. DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 2 Domino’s Pizza Sizzles with Pizza Tracker This case study discusses the impact that information systems and global e-business has had on Domino’s Pizzas’ reemergence as an industry leader in the home-delivery pizza market. It looks into what kind of systems are used, how the systems improve business performance, how their online pizza ordering system has improved the ordering process and how the systems are giving Domino’s a competitive edge. Domino’s opened in 1960 and grew to 200 stores in 1978 and currently operates almost 9000 stores worldwide and has the largest share of the approximate $15 Billion/year pizza market. They compete with Pizza Hut, Papa John’s and Little Caesar’s along with local pizza shops. Despite being one of the most well-known brands in the United States, between 2006...
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...There are a few different systems described in the case study of Domino's Pizza. The transaction processing system, which consists of computerized systems that perform and record the daily routine transactions necessary to conduct business, is utilized in the companies Pulse system. Pulse is Domino's point-of-sale system which takes and customizes orders using a touch screen interface, maintaining their sales information as well as collecting customer data. The input under this system occurs when customers place their orders, which provides the details of the pizza and any other requested items. The process under the transaction processing system is the collection of data as well as it being uploaded over the internet into the Lenovo PC for processing. The Lenovo is part of the updated Pulse Evolution system that Domino's Pizza adopted. Under the old system it was considered to be a “thick client” model, which required all fully equipped machines. The output for the transaction process system in this case study is the customer information data, the number of pizza's sold along with toppings and costs of other food items sold. Also, the pizza tracker system, which allows customers to view a simulation of their pizza as it is being customized and created is part of their output. The management information system provides middle and upper management with reports on the company's current performance. According to the case study in our textbook, the Pulse system that was implemented...
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...QUESTION # 01: What kind of systems are described in this case? Identify and describe the business processes each supports. Describe the inputs, processes, and outputs of these systems. ANSWER # 01 There are several kinds of systems are described in this case study; Domino’s uses TPS , pulse evolution and SCMs which helps to increase customer satisfaction pulse is installed on two types of hardware first “thick-client “in which all order (TPS)“pulse “are installed on pc’s and other is “thin-client “model that is network with small clients. Domino’s defined point-of-sale system, Pulse, which is an important asset in maintaining consistent and efficient management functions in each of its restaurants. A point-of-sale system captures purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices Domino’s applied pulse in a huge slice of its store, and those stores conveyed better-quality customer service, reduced mistakes, and shorter training times. Since then, Pulse has become a essential of all Domino’s franchises The inputs, processes, and outputs of these systems are as follows; Inputs: The customer orders that define the type of pizza which they want to eat as they customize its size, sauces and toppings, and delivery location data, these are the inputs. Processes: By receiving an order all the data is stored in the database recorded in their machines and by...
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...Case study 1 IT – Indistinguishable from Magic University of Illinois Abstract The objective of this paper is to study how Business strategy, Green computing, Ecommerce and Web 2.0 helps organization to sustain in competitive advantage. First part of this paper consists of how differentiation strategy assists company to stand uniquely in the market. The business strategy of Lego Company has been studied to understand Focused differentiation and Broad Differentiation strategies. Green Computing stands as the second part of this paper which contains the ‘Go Green’ activities of Cognizant technology Solutions, how Cognizant successfully saved tremendous amount of energy by implementing these activities. Later, Ecommerce has been discussed. Ecommerce involves commercial transactions through internet without any obstacle of place and time. The online website of delicious Papa John’s Pizza represents a good example for B2C type of ecommerce. Last part of paper contains the advent of web 2.0. Zara is one of the leading fashion companies which gained a remarkable amount of profit by implementing web 2.0. In this way Green computing and Information system plays an important role in the competitive world. Organizational strategy: To maintain the market position in the competitive world, company has to choose and enable the organizational strategy with the help of information technology. One of the ways to compete successfully is to make the unique...
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...radi cally improving ingred ient s an d fresh ne ss. Critics b elieve the company sign ificantly im proved the qu ality of its pizza and cus tomer service in 2010. Domino's was founded in 1960 by Tom Mon agh an and h is brother James wh en th ey purchased a single pizza store in Ypsilan ti, Michigan. The company slowly b egan to grow, and by 1978, Domino's h ad 200 stores. Today, th e compa ny is h eadquartered in Ann Arbor, Mich igan, and operates alm ost 9,000 store s located in all 50 U.S. states and across th e world in 60 international markets. In 2009, Dom ino's h ad $1.5 bill ion in sales and ea rned $80 million in profit. Domino's is part of a heate d battle am ong promi n ent pizza chains, incl uding Pizza Hut, Pap a John's, and Little Caesar. Pizza Hut is th e only chain larger th an Domino's in the U.S., but each of th e four h as significant m ar ket sh are. Domin o's also compe tes with local pizza stores througho ut th e U.S. To gain a com pe titive advantage Domino 's n eeds to deliv er...
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...TruEarth Healthy Food Case Study Introduction to the case Company’s background TrueEarth was founded in 1993 in St.Louis ,Missouri, by Garreth Derosta a young entrepreneur . They offered high processed gourmet (focus on whole grain products offering both 60% and 100% whole grain pastas-cucina Fresca) authentic with great quality . Their product line was: Standard pastas Whole grain pastas Tomato based sauce Refrigerated pastas Pastas with blended ingredient The concept was successful ,and truEarth became a supplier to a number of gourmet groceries throughout the Midwestern United State by 1998 ,the Company had built a loyal regional following .Responding to Customer demand ,the company raised consumer awareness through several promotional programs using coupons ,magazine advertisement ,and in-store demonstrations. Product Development process: In its early years ,truEarth’s product development was informal and largely driven by intuition .the team enjoyed experimenting with new products and limited edition variations on a core recipes and batch process used to manufacture most products made it easy to experiment without affecting overall production. But as time passed the company underestimate the appeal of hit product and find itself struggling to keep up with the demand. The company’ research and development Idea generation Concept searching Product development and testing Qualification of volume About Cucina Fresca The cucina Fresca line was...
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...HISTORY Domino’s Pizza was founded in 1960 and since then has grown to become the largest pizza delivery company in the United States. It has grown from a mom-and-pop pizza store to a network of company-owned, franchise-owned stores in the United States and across the globe and was recently ranked number 1 in Forbes magazine’s “Top 20 Franchises for the Money” list (David, R 2013, p. 372). Domino’s Pizza was the brain child of the brothers Tom and James Monaghan who grew up in foster care and had dreams of success. In 1960 the brothers opened their first pizza store in Ypsilanti, Michigan named Domi-Nicks with a nine hundred dollar start up loan. In 1961 Tom acquired full and sole ownership of Domi-Nicks by trading his brother James a car, a Volkswagen Beetle to be specific, for his half of the business. He then changed the name to Domino’s Pizza Inc. During the period from 1965 to 1978 Domino’s experienced steady growth and had increased from the initial mom-and-pop store, to having 200 locations nationwide. The 1980’s saw continued expansion of Domino’s and its brand. They grew to more than 5,000 locations in the United States, Canada, United Kingdom, Japan, Australia and Columbia (David, R. 2013, p.372). In 1986 Domino’s Pizza launched its Pizza Partners Foundation which is 100% funded by team member and franchise contributions and has disbursed nearly $12 million to aid team members facing crisis situations. Company founder Tom Monaghan eventually retired in 1998...
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