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Papa Johns Pizza

Autor:   •  September 17, 2011  •  Essay  •  289 Words (2 Pages)  •  1,536 Views

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Papa John's is attempting to promote its growth in the U.S. and international market(s). The main idea in the case is how to achieve fast, profitable growth without straying from the core values and mission statement. Papa John's would be able to further expand into international markets by continuing to do what they believe they do best, provide superior quality pizza with exceptional emphasis on the customer. To do this, the company has elected to refrain from following a cost leadership strategy and pursue something similar to product differentiation. However, this does not mean that the company does little to curtail costs. Given the structure and history of the company, Papa John's has been able to reduce costs in ways that do not sacrifice quality; this will continue to be a critical aspect for sustainable growth, regardless of the market. These practices, paired with the knowledge accumulated since the inception of Papa John's, have led to economies of scale. Additionally, Papa John's commitment to quality may have altered consumers' perceptions, allowing the company to charge a premium for pizzas and even enjoy some brand loyalty (which may also be a barrier to entry).

Therefore, I recommend that Papa John's pursue growth by promoting the thing that differentiates it from competitors – "Better Ingredients. Better Pizza." It is important that the company does not waver on quality, lest they risk their reputation. And while they do not explicitly pursue a cost leadership strategy, I feel it is imperative for the company to continue to utilize its learning-curve economies as well as its abilities to be first-movers to technological software. Together, these have allowed Papa John's to continually reach customers and maintain consistent, superior quality in both owned and franchised locations.

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