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Panera Bread
In its 2015 Form 10-K, Panera Bread describes itself as “one of the largest food service companies in the United States” and that its success is attributable to “our ability to create long-term concept differentiation.”
The company defines its strategy as differentiation, and this aligns with the generic strategy as defined by Porter. The differentiation strategy cites differentiation as a source of competitive advantage and the market scope as broad (MindTools, 2019).
In this, Panera bread is trying to achieve competitive advantage through concept differentiation. It cannot sustain competitive advantage based on things like the food it serves (fairly standard mainstream white people fare) or free wifi, but it believes that total package concept that it offers is sufficiently unique to win business in the long run. There are individual competitors, but few major competitors that do exactly what Panera Bread does. If Panera is competing against mainly quick service or fast casual businesses, it does offer a relatively unique value proposition in terms of the food and the in-store experience.
A SWOT analysis reveals that Panera does a lot of things well, and these competencies have allowed them to grow to be a very large player in its industry. Panera is a well-performing company, and does not have many real weaknesses, but it does have relative weaknesses, things that different competitors do better. Panera’s marketing is good, but not the...…itself, in a space where such opportunities seem few and far between.
The study of Panera’s value chain is also quite valuable. One of the major challenges in value chain is that Panera is able to execute across thousands of stores, which is an amazing accomplishment. It is very difficult to enjoy operational excellence across a large company, with systems that are so strong they can be implemented by workers of all levels with great success. There are some great lessons in how Panera Bread has been able to thrive, because on paper there are a lot of reasons why they wouldn’t. So the fact that Panera has been incredibly successful provides a lot of powerful learning opportunities.…
Panera Bread Product Life Cycle There are various phases generally attributed to any product's lifecycle (Gorchel, 2010). There four phases of the product lifecycle are introduction, growth, maturity, and decline. These phases are necessary to understand in order to manage a product life from its beginning to end. This model could be best applied to the industry niche that Panera operates in rather than anyone of their products. Panera's niche is something
Panera Bread Company-Growth in a Difficult Economy Panera Bread Company - Growth in a Difficult Economy What is Panera Bread's strategy? Which of the five generic competitive strategies & #8230; What type of competitive advantage is Panera Bread trying to achieve? Panera Bread's business strategy was to make the bread company a brand recognized nationally and to be a dominant restaurant in the specialty bakery-cafe segment. This was to be achieved by using
It sales is also expected to skyrocket from its own restaurant which was started in 2011. The sales expected to increase from 7% to 7.5% in the current quarter, as better weather, the media spending higher price help it to continue to outperform the industry. Promotion and advertising Penera Bread Company is to spend millions of dollars in reach the market and to improve it sales and profitable. These will be through
The franchisee program should continue to draw new potential owners due to the growth and strength of the Panera brand. Geographic growth opportunities are also strong. The company has many unsaturated markets. If the company can achieve St. Louis-level saturation (1 store per 67,000 people) in all major markets, there is room for strong domestic growth for many years to come. The firm will need to begin expanding into the
3. Panera is doing well financially. Its revenues and profits have been growing steadily for the past five years. The gross margin is 61.4% and its net margin is 7.46%. Panera is liquid, with a current ratio of 1.59 and a debt to equity ratio of 0.52. Inventory turns over 13 times per year. The ROA is 14.9%, the ROE 22.93% and the ROC 19.3% (MSN Moneycentral, 2012). In general,
Panera Bread Company Marketing Strategy Panera Company is a chain of bakeries that are based in the U.S. And spans all the way to Canada. It produces a series of baked foods, mainly bread, and cakes. Its customer base is local and international. Currently, the company is the leading bakery in the market. It has cut out a special niche for itself in the market through a series of marketing strategies