Papa John’s International Case
1. The competitive forces confronting Papa John’s in the pizza segment of the quick serve
restaurant industry are medium to high, meaning they have a quality position within the
market, but have heavy competition encircling them. Based on Porter’s five forces we
will assess Papa John’s strength, proving their position within the market at this time.
First we must look at supplier power, which seems high. Suppliers are able to drive prices
immensely. For example, milk prices increased 27.3 percent in 2010 and 9.2 percent
again in 2011, causing unsuspected increases in costs. Next is buyer power, which again
is high due to the amount of competition Papa John’s is facing. If the buyer is not willing
to pay a certain price for a certain item, or does not enjoy some of the food items Papa
John’s is promoting, then switching to another brand is quite simple and accessible. It
