Question

Discuss the applications and limitations of generic business stragies in this new climate. (Papa Johns pizza)

Answer 1

            Papa John's is an American pizza restaurant franchise. it's the fourth largest pizza delivery chain within the us , with headquarters in Jeffersontown, Kentucky, a suburb of Louisville.

Applications and limitations of generic business stragies (Papa John Pizza) :
Papa John's pizza industry targets only on a corporation-wide differentiation generic strategy. There are reportedly over 3,600 papa johns stores across the state , mainly because it's a franchise company. Papa John's focuses on providing better pizza for its customers, hence their slogan, "better ingredients better pizza" making them provide differentiation. Due to this advertisement, their pizza may be a bit more costly than the typical pizza.Business Level: Papa John’s key strategies implemented are product differentiation by creating a high-quality pizza with high-quality ingredients, and not competing on price but offering a singular authentic traditional pizza. Cost-leadership and Lean Production will lower cost and increase profitability. The source of competitive advantages comes from long-term sustainability and maintainability of key suppliers, team members and resources which reciprocally maximize local leadership strategies and capabilities; during this case, by spending in practice for future passionate employees/staff, managers, and executives.
Corporate Level: The key strategies involve Hedging and vertical combination by negotiating with suppliers to get products at a lower cost and organizing supplier agreements to shop for key resources to sell at a lower.

Key elements of the strategy :

Threats of latest Entrants:
*By innovating new products and services. New products not only brings new customers to the fold but also give old customer a reason to shop for Papa John's International, Inc. ‘s products.
*By building economies of scale in order that it can lower the fixed charge per unit.
*Building capacities and pocket money on research and development. New entrants are less likely to enter a dynamic industry where the established players like Papa John's International, Inc. keep defining the standards regularly.

Bargaining Power of the Suppliers:
Bargaining power refers to the pressure consumers can exercise on sellers to urge a better quality product at a lower cost . In Papa John’s case it's high, because the most product “Pizza” is standardized and undifferentiated to some extent. Consumers will shop where coupons and discounts are offered. Additionally, Buyers are well intimate the standard , prices, and costs of all competitors, which make the customer costs of switching to competing product very low.

*The bargaining power of suppliers ask what percentage flexible options there are in purchasing their ingredients from. For Papa John's the bargaining power of suppliers is high because Papa John's mainly buys their ingredients from internal control Centers. Since they depend only on QCC they'll potentially face difficulties concerning direct material costs.

Bargaining Power of Buyers:
*By building an outsized base of consumers . this may be helpful in two ways. it'll reduce the bargaining power of the buyers plus it'll provide a chance to the firm to streamline its sales and production process.
*By rapidly innovating new products. Customers generally explore discounts and offerings on entrenched products so if Papa John's International, Inc. keep it up arising with new products then it can limit the bargaining power of buyers.
*New products also will reduce the defection of existing customers of Papa John's International, Inc. to its competitors.

Threat of substitution:
It is the competitive pressure coming from the producers of substitute products. Papa John's pizza substitution is extremely high because there are many other choices that customers can substitute from their pizza. Consumers produce other alternatives like buying a coffee cost frozen pizza from a spread of grocery stores. they will also prefer to purchase a bigger cooked or uncooked pizza from Costco for less than $10.99.
*By being service oriented instead of just product oriented.
*By understanding the core need of the customer instead of what the customer is buying.
*By increasing the switching cost for the purchasers .
Limitations during this new climate :
Papa John’s wants to deliver your food without ever touching it.The chain said on its website that it’s unrolled a “no-contact delivery” measure to make sure the security of its customers and employees during the coronavirus pandemic.
Patrons who order online or through the app can check the “Leave at My Door” choice to eliminate in-person handoffs. As well, workers will apply a secure seal to the lid of the box.When the order is prepared , the driving force will leave it on a cleaned surface ahead of your house, the shop said. Order payment and tipping are handled digitally once you order online. Employees were also under limitations rules. They also follows many restrictions and limitations within the new climate.