4.

Primary components of Papa John’s value chain

A value chain provides a clear picture of the main internal activities in a firm that helps
create values for its customers and the support activities that assist it. It helps a firm to see how
well it is delivering customer values in comparison to its competitors. Papa John’s primary value
chain consists of the following, Inbound logistics, Operations, Outbound logistics, Marketing
and sales, and Service.

For Papa John’s, its inbound logistics include acquiring raw ingredients for its pizzas,
which are available from company designated Quality Control Centers. These centers also serve
as quality control for franchisees, ensuring that all Papa John’s pizzas are up to their high
product standards.

The next stage is its operations; the part where Papa John’s employees start baking
pizzas. Staff adopt a made-to-order style in which pizzas are baked when consumers order them.
Papa John’s operations also relies heavily on its distribution channels, which mostly covered
takeaway, carryout, and delivery. For this, franchises have to be in convenient locations whereby
customers can obtain their pizzas easily and conveniently.

Another primary value chain is outbound logistics. Papa John’s outbound logistics mostly
depends on the packaging of its pizzas and the service of its delivery staff to deliver pizzas to
consumers.

Papa John’s value chain also includes its marketing and sponsorship activities. Papa
John’s is actively involved in community service by financial incentives, job opportunities and
others. Its partnership and/or sponsorship includes Junior Achievement, The Boy Scouts of
America and University of Louisville. Besides, Papa John’s marketing efforts utilizes
geographical factors in order to construct well-positioned franchises.