Panera Bread Case
9/17/2013
Panera Bread Company 1. What is Panera Bread’s strategy? Which of the four generic competitive strategies discussed in Chapter 3 most closely fit the competitive approach that Panera Bread is taking? What specific kind of competitive advantage is Panera Bread trying to achieve?
Driving concept: to provide a premium specialty bakery and café experience to urban workers and suburban dwellers.
Generic: Broad differentiation strategy.
Competitive advantage: striving to build a competitive advantage based on the triple combination of Product, Environment, and Great Service (PEGS).
2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation?
Strengths:
Attractive & appealing menu
Bread-baking expertise (a core competence) – artisan breads are Panera’s signature product.
Nationwide leader in the bakery-café segment
High ratings in customer satisfaction studies
Good brand name
Fresh dough operations & sales to franchised stores
Initial success in catering
Good franchisees – higher sales in franchised stores compared to company-owned
Financial strength of the company – able to grow without taking on too much debt
Weaknesses:
A less well-known brand name than some rivals (Applebee’s, Starbucks)
Sales at franchised stores higher than company-owned stores – Why?
External Threats
Rivals begin to imitate menu offerings/or dining ambience – easy to copy?
Competition from other chains
Saturate the market – will it become harder to find attractive locations for new stores and slow company’s growth
Opportunities
Open more outlets – untapped growth potential in a number of suburban markets (see Exhibit 3)
International expansion
3. What are the primary components of Panera Bread’s value chain?
Operations - Panera provided and required comprehensive front and back of house training, market analysis, and bakery café certification.
Outbound logistics - each franchisee purchased dough
Panera Bread Company 1. What is Panera Bread’s strategy? Which of the four generic competitive strategies discussed in Chapter 3 most closely fit the competitive approach that Panera Bread is taking? What specific kind of competitive advantage is Panera Bread trying to achieve?
Driving concept: to provide a premium specialty bakery and café experience to urban workers and suburban dwellers.
Generic: Broad differentiation strategy.
Competitive advantage: striving to build a competitive advantage based on the triple combination of Product, Environment, and Great Service (PEGS).
2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation?
Strengths:
Attractive & appealing menu
Bread-baking expertise (a core competence) – artisan breads are Panera’s signature product.
Nationwide leader in the bakery-café segment
High ratings in customer satisfaction studies
Good brand name
Fresh dough operations & sales to franchised stores
Initial success in catering
Good franchisees – higher sales in franchised stores compared to company-owned
Financial strength of the company – able to grow without taking on too much debt
Weaknesses:
A less well-known brand name than some rivals (Applebee’s, Starbucks)
Sales at franchised stores higher than company-owned stores – Why?
External Threats
Rivals begin to imitate menu offerings/or dining ambience – easy to copy?
Competition from other chains
Saturate the market – will it become harder to find attractive locations for new stores and slow company’s growth
Opportunities
Open more outlets – untapped growth potential in a number of suburban markets (see Exhibit 3)
International expansion
3. What are the primary components of Panera Bread’s value chain?
Operations - Panera provided and required comprehensive front and back of house training, market analysis, and bakery café certification.
Outbound logistics - each franchisee purchased dough