MARKET ANALYSIS Analysis of Papa John's Pizza Market

Running head: MARKET ANALYSIS
Market Analysis
Name of the Student
Name of the University
Author Note

1MARKET ANALYSIS
Executive Summary:
The paper is focused in describing a company of the pizza processing industry in the form of
Papa John’s Pizza. The paper assesses the macro environmental factors of the Australian
pizza market and along with that, the paper provides significant information regarding the
various modes of market entry such as mergers, acquisition and contract manufacturing. The
paper analyses the best suitable method for the chosen organization to enter the Australian
market. Apart from that, the paper provides a detailed analysis of the competitive strategy of
the organization with a precise focus on the Porter’s generic strategies. In addition to this, the
paper produces a brief discussion on the market segmentation of the country as well. The
paper identifies the scope of forming a merged organization between Papa John’s Pizza and
Zume Pizza for better business conduction. The paper also confirms the suitability of the
Australian market for the profitable business conduction with a precise focus on the macro
environmental aspects.

2MARKET ANALYSIS
Table of Contents
Introduction:...............................................................................................................................4
PESTLE Analysis:.....................................................................................................................5
Political:.................................................................................................................................5
Economic:..............................................................................................................................6
Social:.....................................................................................................................................7
Technological:........................................................................................................................8
Legal:......................................................................................................................................9
Environmental:.......................................................................................................................9
Modes of Market Entry:...........................................................................................................10
Mergers:...............................................................................................................................10
Conglomerate mergers:....................................................................................................11
Vertical Mergers:.............................................................................................................11
Horizontal Mergers:.........................................................................................................12
Market Extension:............................................................................................................12
Congeneric Mergers:........................................................................................................12
Contract Manufacturing:......................................................................................................13
Acquisition:..........................................................................................................................13
Suitable mode of market entry:............................................................................................14
Market Segmentation:..............................................................................................................15
Competitive Strategy:...............................................................................................................16
Conclusion:..............................................................................................................................18

3MARKET ANALYSIS
References:...............................................................................................................................19
Appendix:.................................................................................................................................23

4MARKET ANALYSIS
Introduction:
The modern business organizations are observed to be significantly focused in the
identification of the profitable business opportunities to increase the generations of the
revenue. However, it is seen that the majority of the business industries are notably populated
with the competitor organizations. The level of competition is observed to be so intense that
the organizations are facing significant difficulty in their survival and in improving their
growth (Nestle 2013). Hence the majority of the organizations are observed to search for the
viable options so that they are able to spread their business in order to generate sufficient
amount of profit to survive in the intensely competitive industry. In addition to this, the
organizations are facing the need to identify their products with a precise focus on the rate of
consumption of the product and the business prospect of the product in a chosen country
where they want to spread their business. According to Baiardi, Bianchi and Lorenzini
(2015), the option of the business expansions is a feasible idea for the effective reduction of
the impact of such intense market competition. Adding to this, the various aspects of the
business expansion such as the market analysis, financial feasibility of the expansion,
business opportunity with a particular product are observed to be crucial for the achievement
of the desired success from the business expansion.
The paper analyses one such case for a chosen organization Papa John's Pizza with a
precise focus on their idea of business expansion to Australia. The chosen company is an
American pizza restaurant franchise, which operates in the Pizza delivery industry. The
chosen organization was established in the year 1984 by John Schnatter and is seen to expand
in a significant manner under the leadership of Steve Ritchie, the chief executive officer of
the organization over Europe, Asia and Latin America (Papajohns.com. 2019). The paper is
observed to reflect the results of an external analysis for the company in the destination

5MARKET ANALYSIS
country through the PESTLE analysis and along with that, the paper assesses three different
modes of the market entry in the form of the mergers, acquisition and the contract
manufacturing. Apart from this, the paper also describes the market segmentation for the
company in the new location and also specifies the competitive advantage of the organization
through the application of the Porter’s generic strategies.
PESTLE Analysis:
The chosen organization is one of the very few globally recognised organizations
which operate in the mentioned industry. The products and the services of the company is
notably based on the variety of the pizza. In addition to this, Australia is evaluated to be one
of the countries where consumption of the pizza and the demand of the pizza are expressively
high. Under such situation, the evaluation of the external environment, that the chosen
organization is expected to face, is of great significance for them in the implementation of the
idea of the business expansion.
Political:
The political impact on the pizza manufacturing organizations of the country is
observed to be significantly limited and that is one of the prime reasons of the notable
emergence of many of the modern organizations. However it is seen that the government of
the country and the political parties are notably focused in the limitation of the adverse
impact of the drugs and the other hazardous elements in the manufacturing and the processing
of the pizza. Hence it is visible that the political parties are pretty effective in making sure
that the pizza manufacturing organizations of the country operates in an effective manner and
aligns their business conduction in such a manner that it does not produce any sort of harm to
the citizens of the country.