For more than 20 years, Papa John's has been bringing quality pizza and customer service to the restaurant market. While some companies focus solely on the sales of their products, Papa John's is also intently focused on the quality of their products. You will hardly find an industry quite as saturated as the restaurant industry, but due to Papa John's philosophy, they have managed to survive in this competitive field.
The first aspect to consider when analyzing this industry is the rivalry amongst competition, which is huge in the restaurant industry. While there is an abundance of pizza restaurants, Papa John's main concern is that of other major pizza chains such as Dominos and Pizza Hut. There are hundreds of pizza shops in nearly every city, but Papa John's is not competing with those shops. Papa John's and other major pizza chains cannot afford to compete with those shops due to the low costs. Looking at the competition from this perspective, the industry is not as saturated as first thought. There are only a few major pizza chains that are in competition with each other, but considering the large market share each of these major chains has and taking into consideration the local pizza shops, there is a lot of rivalry amongst competitors in this industry.
The industry growth rate is currently 12.09%, which is not as vast as it once was. While the industry is still very competitive, market share is also very limited for new companies, so there is not as much room for growth. The only way for companies to grow in this industry is to take market share away from already-existing companies.
The competitors in the pizza industry seem to have balance and be in cooperation with each other. While there are ...