papa johns case study (vrio analysis)
DESCRIPTION
Strategic Management VRIOTRANSCRIPT
Mission
Objectives
Internal Analysis External Analysis
Strategic
Choice
Business Level
StrategyCorporate
Level Strategy
Cost
leadership
Product
differentiation
A product differentiation strategy must meet the
VRIO criteria…
Is it Valuable?
Is it Rare?
Is it costly to Imitate?
Is the firm Organized to exploit it?
…if it is to create competitive advantage.
Competitive Advantage
• John Schnatter memulai Papa John’s th 1985
• Memulai Franchise th 1986
• IPO pada 8 Juni 1993
• Cabang Internasional I th 1998 melalui akuisisi
“Perfect Pizza” di United Kingdom (Inggris)
• Menduduki No. 1 pd American Customer
Satisfaction Index (1999-2008)
Elemen Deskripsi Tahun
Penggunaan
Teknologi
online ordering & text messages ordering 2001 & 2007
Menu • Pan Pizza
• desserts (carryout & delivery menu ), chocolate pastry delight
2006 & 2008
Pertumbuhan /
Growth
• High-quality pizza. Resep adonan dan isi pizza khusus
• operating cost rendah & QC center (Operating System yang Efisien )
• Program Training utk Kary.& franchisee, INSENTIF , Adv. NASIONAL, Marketing
dengan Level, direct-mail, Orientasi kpd aktivitas komunitas, Co-Branding, sponsor
• Menarik franchisee dgn Bantuan dlm operasi.
2007
Biaya • Leasing building space
• KEJU sbg Elemen Biaya Tinggi (35-40%)- VOLATILE
2007
Elemen Deskripsi Tahun
Operational Support
System
• Operation Support Service and Training (OSST)
• Perusahaan Printing
2007 &
pertengahan-90
Community Affairs • SPONSOR utk Team & Figur Olahraga
• Beasiswa College ($5 juta)
• National FFA, Cerebbral Palsy K.I.D.S Center, Children Miracle Network
Marketing Partnerships
(Co-Branding)
• Coca-Cola
• Blockbuster Video (30-day trial Blockbuster Video online GRATIS)
s/d 2011,
Industry • Pizza adalah industry yg mature dan jenuh
• Persaingan Tinggi, cost of entry rendah dan product differentiation sangat
sulit
(in thousands, except per share data0 Year Ended
Dec. 30,
2007
Dec. 30,
2006
Dec. 25,
2005
Dec. 26,
2004
Dec. 28,
2003
Income Statement Data 52 weeks 53 weeks 52 weeks 52 weeks 52 weeks
Domestic revenues:
Company owned restaurant sales $ 504.330 $ 447.938 $ 434.525 $ 412.676 $ 416.049
Variable interest entities restaurant sales 7.131 7.359 11.713 14.337 -
Franchise royalties 55.285 56.374 52.289 50.292 49.851
Franchise dand development fees 4.758 2.597 3.026 2.475 1.475
Commissary sales 399.099 413.075 398.372 376.642 369.825
Other sales 61.820 50.505 50.474 53.117 48.541
International revenues:
Royalties and franchise and development fees 10.314 7.551 6.529 5.010 3.810
Restaurant and commissary sales 20.860 15.658 11.860 10.747 10.572
Total revenues 1.063.597 1.001.057 968.788 925.296 900.123
Operating income 52.047 97.955 72.700 36.632 55.353
Investment income 1.446 1.682 1.248 639 672
Interest expense (7.465) (3.480) (4.316) (5.313) (6.851)
Income from continuing operations before income taxes and
cumulative effect of a change in accounting principle46.028 96.157 69.632 31.958 49.174
Income tax expense (13.293) (33.171) (25.364) (12.021) (13.440)
Income from continuing operations before income taxes and
cumulative effect of a change in accounting principle32.735 62.986 44.268 19.937 35.734
Income from discontinued operations, net of tax - 389 1.788 3.134 3.242
Cumulative effect of accounting change, net of tax - - - - (413)
Net Income $ 32.735 $ 63.375 $ 46.056 $ 23.071 $ 38.563
DATA LAIN :• Papa John’s hanya menikmati incremental growth (sejak 2000)
• John Schnatter menginginkan 200 to 300 rest. Per tahun
• Analis Restaurant : “pizza industry is a mature & saturated industry”
• Penurunan OPERATING INCOME = OPERATING EXPENSE lebih besar vs
REVENUE
Mission Statement:CUSTOMERS, TEAM MEMBERS, FRANCHISEE, SHAREHOLDERS
Core Values :FOCUS, Accountability, Superiority, PAPA, Attitude, Constant Improvement
Value Chain Value utk Customer
Primer
Inbound logistic • PENDAPATAN USD 1.063 Milyar (2007)
Operasi Lokasi di PRIME AREA dan di dukung oleh commissaries Sebagai SUPPLIER
Outbound logistic Delivery van
Marketing & Sales • Adv. Nasional melalui TV, printing media, internet, direct mail dan in-store marketing
• Sponsor utk Komunitas Lokal
• CSR (beasiswa)
• Pan Pizza & dessert
Service • Order online & telephone
Sekunder
Procurement • KEJU melalui BIBP Commodities
• 10 DEPOT REGIONAL
Technology
development
• ORDER via SMS dan Internet
• Promosi via Internet & mobile
Human resources
management
Operation Support Service and Training (OSST) utk HR
VALUE CHAIN
Resources/
Capabilities
Is it
Valuable?
Is it
Rare?
Costly to
Imitate?Organizing
Inbound Logistic Yes Yes Yes Yes
Operation Yes No No Yes
Outbound
LogisticYes No No Yes
Marketing Yes No No Yes
Service Yes No No Yes
Procurement Yes No No Yes
Technology
developmentYes No No Yes
HRM Yes No No Yes
VRIO Analysis
(VALUE CHAIN)
Produk• pizza spesial (pesan sesuai selera)
• Adonan Kualitas Tinggi
• Termasuk saus dan pepperoniPizza
• Chicken wings, chicken strips, breadsticksMenu Lain
• Coca-colaMinuman
• Applepie, cinnapieDesserts
• Saus, pepperoni, Keju parmesan, dllExtra/Topping
ProdukIs it
Valuable?
Is it
Rare?
Costly to
Imitate?Organizing Keterangan
Pizza Yes Yes No Yes not costly to imitate
Menu Lain Yes No No Yes Disediakan oleh banyak Pesaing
Minuman Yes No No Yes Bukan diferensiasi
Desserts Yes Yes No Yes Langka tapi not costly to imitate
Extra No Yes No Yes Rare tapi tidak bernilai Tinggi
VRIO Analysis
(PRODUK)
• Papa John’s tidak mempunyai sustainable
competitive advantage
• Produk tidak UNIK dan not too costly to duplicate
• Fokus pada 3 kegiatan utama:
1. product quality (Better Ingredients, Better
Pizza)
2. Kampanye (Adv. Publisitas)
3. Expand Internasional
KESIMPULAN
Focal
Firm
Buyers
Suppliers (-)
Entry
Rivalry
Substitutes
Industry
Threat
Neutralizing Threats
The Value of Product Differentiation
- 200 – 300 Rest. Per Tahun
- 4000 Rest. Dalam 5 tahun (per-
2007)
- 6000 – 7000 Rest. Seluruh dunia
- Mengurangi Rest yang dikelola
sendiri
- Stabilitas Revenue
Tujuan Akibat Saran
Ekspansi
Internasional
Mengancam Identitas Carry-Out dan Delivery • Mempertahankan VALUE carry-out & delivery
• Pasar ASIA
Area DomestikJumlah Rest. Besar- Span of Control. • Komposisi Franchisee dan Owned Restoran
• Menggalakkan Co-branding
Bisnis Baru
(akuisisi atau
development)
• Acquisition, perbedaan pada culture dan
Harga Tinggi
• Bisnis baru di luar Pizza, butuh pengetahuan
baru
• Akuisisi bisnis serupa
Strategi Rekomendasi Contoh
Pengembangan Produk Baru • Bahan2 import
• Desserts baru
• Kopi dan variannya
• Elemen KESEHATAN
• PIZZA Original dari ITALY
• Cake, Pudding
• Es Kopi, Capuccino dll
• KALORI Rendah
Jasa / Service Baru Catering services Menu Pesta atau Rapat
Keterkaitan multi area Bank Jaminan Perusahaan utk Franchisee
kredit kepada Bank
Lokasi ASIA Franchise
Distribution channels Outlet Paket PIZZA buat Sendiri
Brand Image KESEHATAN PIZZA Rendah Kalori