(Horovitz) This is important, because it shows how the strategy that made the company successful in the past; would help contribute to the various issues that they were wrestling with. At which point, it would begin to have an impact upon how they were viewed by customers.
When you put these different elements together, this shows how Domino's was facing severe challenges from rising costs and declining sales. This is because they were not changing their business strategy, which helped contribute to their image problem. As a result, some kind of drastic improvements were necessary, to address the underlying challenges that the company was facing.
To overcome these different challenges, Dominos would begin examining the entire organization. What happened was the severe economic challenges and loss of market share that the company was experiencing, would begin to have a negative impact upon profit margins. To counter these effects, they would hire a new CEO (Patrick Doyle). He would focus on improving the overall quality and the image of the company, by introducing a new recipe along with marketing campaign. This would have a dramatic impact upon first quarter profits, by increasing them by14.3% (the largest quarterly improvement in company's history). At the same time, other pizza delivery businesses and frozen pizza manufacturers reported a 3% decrease in sales. (Horovitz) This is significant, because it would show how the strategy that was implemented by Doyle would address: the pricing pressures, declining sales and the image problem that the company had. In many ways, one could argue that this emphasis would help Domino's be able to standout in the minds of consumers, contributing to the increase in sales.
In the case of Papa John's, they have been facing similar challenges as Domino's. Where, the company has been wrestling with rising prices for various related commodities (i.e. cheese as well as other ingredients) and a sharp implosion in consumer spending. Evidence of the total impact of these two factors on the company can be seen, by looking no further than their recent quarterly earnings results. As earnings would come in at $.30 cents versus $.42 cents at the same time one year ago, while domestic same stores sales would decline by .6%. ("Papa John's Announced Third Quarter Results ") This is significant, because it shows how Papa John's has been wrestling with the same challenges facing the industry. At the same time, Domino's Pizza is reinventing itself and seeing an upsurge in sales, as this strategy could siphon market share away from the company. When you put these different elements together, this highlights how a change is taking place in the industry, which is having adverse effects on the overall bottom line of Papa John's.
To mitigate these effects, the company has begun using multiple strategies simultaneously. As far as rising prices are concerned, cheese was the biggest cost that the company was facing. To address this issue, Papa John's entered into a purchasing agreement with BIBP (a franchise owned entity), where they are providing them with cheese, for each location at a discount. The way this works is BIBP make large purchases in the market for cheese. They then offer a discount to franchisees, as the various fees help offset any increases in cheese prices. This is significant, because it shows how the company is aggressively focused on reducing the total impact that rising prices could have on its bottom line. ("Pizza Lovers")
To improve the image of the company and keep up with the changes Domino's introduced; Papa John's responded with the Pizza Challenge. This is where the company would challenge customers, to create their own 14-inch pizza over the summer. The winner would have a chance to meet the founder of Papa John's and will have their pizza featured as a main pie in the restaurants. This is significant, because it shows how the company is adjusting to the changes from the competition, by creating their own unique menus. Based on the recent quarterly results, this has helped to reduce the large implosion in sales, yet it has not translated into the same kind of success that Domino's would see earlier in the year. (Stickney 655)
When you analyze both companies, it is clear that they are facing similar kinds of challenges. As Domino's is responding by changing their menu and the way they market the company. While Papa John's, is involved in reducing the costs that they are paying for cheese and the overall types of pizzas they offer. This is significant, because it shows how both organizations are adapting to the various changes, by using unique...
Impact of Trade Barriers There are several pizza franchises that operate internationally, and this is an opportunity open to Papa John's as well. Both Pizza Hut and Domino's have major international operations, and these have been facilitated by a reduction in trade barriers (Buss, 2013). International expansion, especially to emerging markets, has formed a part of the company's growth strategy since 2013 (Euromonitor, 2013). When trade barriers are reduced, this helps
Business Plan Domino's Pizza, Inc. Domino's Pizza Management and Human Resources Organization structure. Domino's Pizza, Inc. was founded in 1960 and incorporated as Domino's Pizza, Inc. In 1965 in Ann Arbor, Michigan. Domino's Pizza, Inc. issued an IPO in 2004 (Yahoo Finance, 2011); several international franchises (e.g., India, Australia) followed suit. The publicly owned company has ten principle subsidiaries (Pederson & Cengage, 2004). Domino's sells pizza and related food items through company-owned and
DOMINO'S PIZZA UK Domino's Pizza UK Domino's Pizza Domino's pizza PESTLE analysis This section focuses on the UK's political, economic, social, technological, legal, and environmental factors influencing the operations of Domino's pizza. Political Multinational firms in the fast food industry must adhere to particular political requirements like regulations of national minimum wages, which affect their costs. Quality and hygiene regulations vary between countries and influence the quality of items offered by companies such as Domino's pizza
Did your view of media literacy change over the course of the class? How will your consumption of media be affected? As a result of taking this course, I think I have become a more critical consumer of the media. When I see a commercial, I am hyper-aware of how the product is being positioned in the market, and what types of narratives are being used to play upon the
Papa John's is a pizza chain that is focused on delivering quality and offering customers with a better experience. At the heart of their strategy, is to use those ingredients that will have the greatest impact on creating value and enhancing the services they are providing. This helped the company to grow from a single location into one the largest restaurants in the world. However, like all successful organizations, there
In one reported incident, a Papa John's would-be customer was left on hold for over two hours, then had the call disconnected by an improperly trained employee (ICQ, 2005). Pizza Hut also has a better track record with handling complaints. Several chat room members reported incidents of disappointing service at Pizza Hut. However, when complaints were taken up there was sufficient incentive to continue using that company, such as providing
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