The VRIO analysis for papa John’s proves that the company has a sustainability strategy, because the enterprise has created a culture that would be able to support international growth and continue being a leader in the industry. In addition, the company is agile and flexible to affront market challenges and ingredients price volatility. Moreover, the company has build a strong culture that will help the organization to compete in international markets and learn new skills to cultivate good relationships with new suppliers.
Value:
The company has built a strong brand by the use of innovative marketing, product offerings and industry leading technology. Additionally, the company has been the leader implementing innovative ordering systems in the industry, for example, in 2001 the company introduced the online ordering, and some years ago, in 2007, Papa
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The volume Papa John’s buy to its suppliers creates a unique advantage that small players cannot have, such as purchasing power in negotiating food and packaging supply contracts, real state purchasing, location selection and marketing[ii]
Papa John’s has built many marketing partnerships over the years that has increased the brand value. For example, the company has a partnership with Coca Cola to offer only Coke product on its restaurants.
The company is agile and flexible in its operations. For instance, the company has focused its effort on leasing building space instead of own them. This strategy has given Papa John’s the flexibility to react when a location is not being profitable and move to some other areas. Another competitive advantage for the company, that has made them difficult to compete with, has been leasing the trailers, because this strategy allowed Papa Jon’s to create a difference in the industry by reducing the cost and manage logistic in a structured manner.