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In the sixth week of the course we will have our third tutorial.Deadline of uploading the home work is October 7 at 17:00 h
Papa John’s International Inc.
1. Which bases of differentiation does Papa John’s International Inc. use?
Product leadership/differentiation. Their pizza’s are more fresh, ingredients are better, etc.
Moreover, they listen to the wants and needs of the customer, which is more tied to a customer
intimacy approach. The brand does not compete on price, but on quality.
Week 3: bases of differentiation:
- Product feature (simple, high quality ingredients, same menu at every store)
- Product reputation (sponsoring local sport clubs, centralized training and operation support
center)
- Consumer marketing (targeting delivery area through direct mailing and couponing)
- Distribution channels (centralized distribution hubs)
- Product customization (only sell what consumers want)
- Linkages among functions within a firm (franchises)
- Linkages external (campaigns with coca cola)
- Texting vs phone ordering (timing of introduction)
2. Which important sources of cost advantages does Papa John’s International Inc. use?
Economies of scale, lean production, low equipment costs as the commissary system ensures high-
quality products, supplier partnership (BIBP). All these factors ensure cost advantages for Papa
John’s. The most important cost advantage (as it ensures a strategic advantage, because it is
unimitatable) is the low equipment acquisition costs per holding. Moreover, encorporating this
commissary system in their supply chain, the company ensures high-quality products. Therefore, the
knife cuts both ways.
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