There are two main strategic types of competitive strategy that are most commonly used. Michael Porter gives us a strategic model that addresses two major concerns of a business unit. The first is market focus and the other is product cost or differentiation. Miles and Snow take a different approach at strategy. Their focus is more on the type of firm, based on how they act within a market. “It is an alternative approach to Porter’s generic strategy”(Parnell, 2008, p.160). In this essay, we are going to discuss Papa John’s competitive strategy along the line of both strategic models. From Porter’s model, Papa John’s used a focused-differentiation strategy that the company used from the beginning. This kind of strategy emphasizes a focus on producing highly differentiated products or services for the specialized need of a market niche(Parnell, 2008). An example of this is shown through …show more content…
Prospectors are the leaders of the market, and always looking to expand and grow with new products or opportunities. Defenders are the opposite of that. They want to operate with maximum efficiency on the thought of the market is stable. Analyzers are the second movers, or the imitators of the prospectors. Reactors are the companies that lack strategic planning and will struggle with economic change. In the case of Papa John’s, the organization uses a defender style strategy. The reason I believe this is really driven by the definition of a defender. Parnell(2008) explains, a defender believes in a stable market and they incorporate high labor, formalization, and centralization to flourish in a market. The focus is on one segment of a market. For example, Papa John’s created a franchise of stores, in which the main focus was on quality. They could have expanded their products, but chose to keep mainly pizza related items on the
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
The marketing strategy we will focus on, will be the strengths of both the company and the products themselves. Hampton Creek Foods will continue positioning as an innovative company that supplies the market with new, high-quality products. Hampton Creek Foods will use the principle that the best marketing is a satisfied customer. While the industries Hampton Creek Foods operates in are large, reputation is an important part which will push Hampton to provide high quality products that the customers will be highly satisfied
Porter’s generic strategy typology and the Miles and Snow strategy typology are both examples of generic strategic models that a decision maker may find useful (Parnell, 2014). Both generic strategy frameworks explain generic business strategies by utilizing four different strategy types. A few of the strategies may share some common traits, however the frameworks are different in the approach they take to view and describe strategies (Parnell, 2014).
This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies Chipotle is using to increase operations and strategies used to compete against rivals in the competitive environment. Concluding with an overall evaluation of Chipotle’s business portfolio.
The framework that will compare Publix Super Markets and its competitors is the Five Forces Model of Competition. The five aspects that will be discussed are the threat of new entrants into the market, the bargaining power of suppliers and buyers, threat of substitute products and rivalry among competing firms. Striving for the optimal position in each of these categories has given Publix Super Markets the reputation it has pride towards earning. It is important to every compa...
Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in 1980. Since that time, it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. In particular, competitive strategy should be based on an understanding of industry structures and the way they change.
Publix strives to utilize the industry-wide differentiation strategy. Although Publix isn’t open 24/7 and does not have self-checkout (which also plays a role in its strategy), it focuses on providing the best customer service and facility presentation. The grocery store chain sets itself apart from the competition by keeping their stores as neat, organized and clean as possible; as well as Publix strives to provide the highest degree of customer service and accommodation as possible. Not only is the staff friendly and knowledgeable, they are encouraged to assist customers to the best of their abilities, they even help with carrying out the groceries to your car and assist in loading. As mentioned before,
traded company. This makes the employees at Publix want to make their store successful as they
...ization with a solid infrastructure. Since 1930 it has consistently expanded and is among the most prosperous supermarkets in the U.S. Through its research, employee programs, technological incorporations, adaptations to consumer preference and psychographics as well as its marketing strategy with respect to competition, Publix has successfully created an environment “where working is a pleasure” and where shopping is a pleasure.” With competition constantly growing, it is essential to keep on top of the global business community and market environment to have a leg up on competition and provide the highest customer value.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
The first strategy they should build on is their brand name, Papa Johns. They might not be number one in what is a very large market place but number three is not bad. People know the name Papa John but it is still not as prevalent as Pizza Hut or Domino's. Granted it has not been the marketplace near as long and does not have the brand loyalty of the top two but keep in mind where they have come in a much shorter period. Most of the brand loyalty of the top two comes from habit of repeat business and remember that habits can be broken. To do so you have to put your brand out in the eye of the consumer to remind them that they have options. It takes only one chance to start a new habit. By taking advantage of the brand status you do hold is how you grow your customer base.
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
There are four main business strategies that can be used they are Cost leadership strategy, Differentiation strategy, Focus strategy (low cost) and Focus strategy (differentiation). We can use Porter’s generic business strategies to understand the difference in these strategies.
First off, we appreciate the opportunity to have had an important role in Pizza Hut's latest product development, BIGFOOT. As you know, over the past five years market shares for the industry have changed much more drastically than in recent years. Our market share has been stagnant, and sales are down 10% this year in relation to last year's numbers.
Burger King’s core competency is fast food restaurant franchises specializing in made to order, flame-broiled hamburger sandwiches, particularly the “Whopper”. Using the strategy of industrial organization to capture market share Burger King offers a similar product (hamburgers) in a different way (flame-broiled). This strategy of product differentiation is part of the firm conduct category that Burger King uses to set itself apart from its competitors. In order to compete with its fast food competitors Burger King accentuates its core competencies in its marketing and product strategies, thereby leveraging market share.