Panera Bread

The analysis of Panera Bread Company will focus on the demographic and sociocultural aspect of its general environment. Overall assessment of the industry environment will be specific to threat of new entrants and the rivalry among competing firms. Internal assessment will be based on – its resources/capabilities, core competences as a source of competitive advantage, weaknesses/competitive deficiencies, firm performance, business level strategy and corporate level strategy.
General Environment The demographic and sociocultural component of Panera Bread’s general environment will be analyzed.
Demographic
The primary target for Panera Bread Company was urban workers and suburban dwellers to purchase its signature product - the artisan bread. They provided their services in a warm community gathering setting. The strategy used to reach these customers was “food you crave, food you can trust”.
Sociocultural
Panera Bread strategically designed cafes and menus to suit the need of customers to enjoy that social and “chill out” experience. Customers could read newspapers and even socialize with friends and family while enjoying their choice of meal. This was mostly geared towards working professionals and family.
Industry Environment The major forces of Panera Bread’s industry environment are – Threat of new entrants and Rivalry among competing firms.
Threat of new entrants The threat of new entrants in the restaurant industry is moderate to high. However, not all operators will be afforded the luxury of a big advertising budget to garner sustainable market share. For firms to successful, they will have to offer a wide variety of menus to differentiate them from competitors and establish their own niche. For fast casual restaurants to be successful, they have to be consistently providing quality meals and an ambience that sets them apart from competitors. This case highlighted that “the restaurant business was labor-intensive, extremely competitive, and