Tuesday, May 5, 2020

Panera Bread free essay sample

The driving concept behind Panera Bread is to provide a premium specialty bakery and cafe experience to urban workers and suburban dwellers. Panera Breads distinctive menu, signature cafe design, inviting ambience, operating systems and unit location strategy allowed it to compete successfully in five submarkets of the food away from home industry: breakfast, lunch, daytime â€Å"chill out†, light evening eat in or take out, and take home bread. In his letter to shareholders, in the company’s 2005 annual report, Panera chairman and CEO Ron Shaich said: â€Å"we think our continued commitment to providing crave-able food that people trust, served in a warm, community gathering place by associates who make our guests feel comfortable, really matters. † Panera’s target market are urban workers and suburban dwellers who are looking for quick service meals and a more aesthetically pleasing dining experience than that offered by traditional fast food vendors. The competitive strategy which most closely fit the competitive approach of Panera Bread is the broad differentiation strategy. This unique position has contributed to its success by adding a bonus to the mix-specialty food, opening for breakfast, lunch, and dinner also offer hand-tossed salads, signature sandwiches, and hearty soups served in edible sourdough bread bowls along with hot and cold coffee drinks. In addition, providing catering services through its via Panera catering business, suggesting a new time of day to eat specialty foods, calling the time between lunch and dinner †chill-out† time. Moreover, the unique position also has providing an inviting neighborly atmosphere adding to their appeal as well. Yes, Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry because the company is counting on its unique positioning strategy, its signature foods, and savvy execution to make this goal a reality. Q2) Porter’s Five Forces Competitors: The main competition Panera Bread Co. experiences is from coffee shops such as Starbucks and Caribou Coffee, along with specialty restaurants such as Chipotle Mexican Grill. Starbucks is a global company with superior market share and brand awareness. Caribou coffee is closer in scale to Panera Bread Co. ; both have high growth outlooks and are currently expanding. Chipotle competes with Panera Bread at lunch and dinner, whereas Starbucks and Caribou compete with Panera Bread in the mornings and at non-traditional dining hours. Panera Bread Co. ’s free Wi-Fi network gives the company a considerable competitive advantage. Substitutes: Small, privately owned local coffee shops or delis could be substitutes for a chain restaurant such as Panera Bread. The small neighborhood atmosphere that â€Å"mom and pop shops† offer could potentially be eliminated. Panera Bread Co. has the ability to offer a wider array of goods and services than substitutes such as these. Since Panera Bread offers a broad assortment of goods on its menu, the threat of substitutes is not of large concern. Potential Entrants: The specialty restaurant industry is by no means mature and has plenty of room for growth, as seen by Caribou and Panera Bread Co. ’s expansion into new markets. In researching competitors, there were few companies with an identical structure and strategy as Panera Bread Co. , which exhibits its belief that there is room for profit in the specialty restaurant industry. As seen through Chipotle’s success, the specialty chain restaurant model can work and the threat of new entrants to the industry is possible. However, the current restaurant market is experiencing commodity and labor inflation that could contract the current margins in the industry and inhibit new entrants. Power of Suppliers: Since many of Panera Bread’s items on the menu are directly correlated to commodity prices such as wheat and dairy prices, the suppliers are quite powerful in this industry. A recent shift Panera Bread made was attaining some its baked goods from external vendors instead of being produced by its own fresh dough facilities (FDF’s), which again increases the power of suppliers. Customers: Patrons love Panera Bread for the wonderful smells and flavors that fill its stylish and very relaxed bakery/cafe shops. The place tends to be a hotspot for the â€Å"soccer mom† crowd, but with the largest free Wi-Fi network in the country, it looks as though businesspeople may become regulars. Its customers have substitutes in the specialty restaurant industry but Panera Bread Co. tends to have loyal customers. Panera Bread’s strategy is â€Å"to provide a premium specialty bakery and cafe xperience to urban workers and suburban dwellers. The concept is a mix between fast food and casual dining, or fast casual. By choosing this strategy, Panera is attempting to achieve competitive advantage in the unique offerings it provides, offering that rivals don’t have and can’t afford to match. In this case, delicious handcrafted bread arriving fresh daily, served in an inviting atmosphere is the company’s competitive advantage and core competen cy. Q3) Barriers to entry that Panera Bread has created for potential competitor are product differentiation and cost advantages independent of size. The barrier for Panera Bread is low. In product differentiation, Panera Bread very proud for their business because they can delivers high quality of food and products with faster speed compare to other casual dining. Besides, the barrier of cost advantages independent of size is the emergence of fast casual which is the new category in the restaurant industry. The owners of Au Bon Pain and Saint Louis Bread Company felt that they could help pioneer this new category. The maintenance cost is low, there are less competitors. It is necessary to consider entry barriers when assessing dominance, when determining whether unilateral conduct might deter new firms from participating in a market, and when analyzing the likely competitive effects of mergers. Entry barriers because competition will not be reduced if new firms could enter easily, quickly, significantly. Q4) Panera Bread’s primary sources of competitive advantage are its position in the restaurant industry, the atmosphere of its restaurants, the distinctive products, brand strength, customer loyalty, and financial performance. The advantages for position in the industry are avoid from arising of competition, success in positioning and execution, positioning strategy of various restaurant chains and also snack time. Besides, the atmosphere are franchised outlets have been operated, convenience, customer attraction, and also expansions. The next is distinctive products which provides product differentiation and offers various kinds of foods. For brand strength is special in brands and foods and also fast-casual category. Furthermore, the customers loyalty which is teamwork and manager-customer relationship. Lastly, the financial performance can avoid threats to profitability and increase of sales. References 1. Panera Bread position, research from: http://www. antiessays. com/free-essays/421278. html 2. Porter’s five forces, research from: www. trinity. edu/smf/inc/reports/PNRA. oc 3. Panera Bread position, advantages of primary sources, research from: https://docs. google. com/viewer? a=vamp;q=cache:2Ow6jb9_g-EJ:eshare. stut. edu. tw/EshareFile/2011_12/2011_12_41a57d4a. ppt+Do+you+think+Panera+Bread+will+reach+its+goal+of+becoming+a+leading+national+brand+in+the+restaurantamp;hl=enamp;gl=myamp;pid=blamp;srcid=ADGEEShBx7Llys8yZ-7i2-500tGOybggsozWXzUjym1Ueg4idLVJlFVzIc_bqVOJ_rhmrzmDSU4RvhjFpTE-RVxp_9Q6KYVHp9f4 2sK72ODpq5J0FJQ2J-pMjyZyafaF1SHZ_sy8K9amp;sig=AHIEtbRos7KiryelsJM71tuaW5YP9SXS9A

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