Competitive Advantage In The Pizza Industry

The pizza industry is composed of two sectors: pizza chains like Papa John’s and Domino’s and independently owned pizzerias (39% of the industry). Pizza chains accounted for 61% of the total industry revenue: this is about $23.6 billion dollars by 2015 (Franchise Help, 2017). According to PMQ Pizza Magazine, the pizza industry has increased from a total US market revenue of $38.5B in 2015 to $44B this year, this is mainly due to an increase of 26% in consumer demand. Knowing the high demand for pizza in the US and the ease of entry to this industry, it is important for companies to achieve a sustainable competitive advantage. For Papa John’s this advantage comes mainly from their balance market position that allows them to offer value to the

Strategy Execution

It involves putting a firm’s resources and capabilities into action to increase value, lower costs, or both. According to Walker and Madsen, execution must permanently be tied to the company’s value and cost drivers (2016). The research found that companies can compete on the same value and cost drivers but differ in how well they perform and achieve goals. For Papa John’s it is observable that brand, culture, and distribution (Quality Centers) are some of its resources, while some of its main capabilities include marketing, continuous improvement by maximizing the use of cutting edge technology.

Value

The major organization dimensions are summarized, and some Papa John’s specific examples are listed below:

Complementary and consistency:

Papa John’s brand (resource) has been complemented with marketing a capability of the company. The brand is a weak resource, thus must be continuously nurtured and sustain.

Control and Coordination Systems:

The company has a Corporate Governance and Nominating Committee of the Board of Directors this with the purpose of assist and identify qualified employees, develop evaluating the process, and overseeing board effectiveness and the development and implementation of policies.

Compensation and Incentives Program:

Papa John’s compensation policies structure allows managers and employees to be rewarded for cooperating with cross functional teams and being creative in the process.

Culture and Learning Behavior: reviews online and the company’s website talked about the culture and sense of unity among papa John’s employees. The company has a program Operation Support Service and Training in practice for human capital