Panera Bread Strategy
Running head: PANERA BREAD CASE
Title: Panera Bread Strategy
Ron Johnson
March 1, 2009
Southwestern College Professional Studies Abstract
This case study is about Panera Bread Company and its strategy it wishes to employ to become the best brand name of fresh bread in the United States. Panera Bread’s use of a broad differentiation strategy has helped their profitability and growth and rivals have found it hard to compete with the competitiveness of Panera Bread. A SWOT analysis will reveal the competitive advantage Panera Bread has and why this company is in an attractive situation and what Panera Bread must do to strengthen its competitive advantage against rival chains.
Panera Bread Strategy
Neighborhoods and cities all around the country are enjoying a tradition of freshly baked artisan breads from Panera Bread bakery-cafes. A driving force behind Panera Bread was to create “a premium specialty bakery and café experience to urban workers and suburban dwellers” (Thompson, Strickland, & Gamble, 2008, pC-87). Heading into 2007, Panera Bread Company’s market presence was expanding rather swiftly. “Between January 1999 and December 2006, close to 850 additional Panera Bread backery-cafés were opened, some company owned and some franchised. Panera Bread reported sales of $829 million and a net income of $58.8 million in 2006. Sales at franchised-operated Panera Bread bakery cafés totaled $1.2 billion in 2006” (Thompson, Strickland, & Gamble, 2008, pC-87). Panera Bread’s strategy was and still is to make great bread and to make it broadly available. Part of that strategy is to make there cafés a home away from home, where people are comfortable and relaxed. What competitive strategy did Panera Bread use to grow its business? There are a number of ways that companies employ competitive strategies and that can depend on a number of things. Panera Bread’s competitive strategy approach is geared more to a broad differentiation strategy, where the
Title: Panera Bread Strategy
Ron Johnson
March 1, 2009
Southwestern College Professional Studies Abstract
This case study is about Panera Bread Company and its strategy it wishes to employ to become the best brand name of fresh bread in the United States. Panera Bread’s use of a broad differentiation strategy has helped their profitability and growth and rivals have found it hard to compete with the competitiveness of Panera Bread. A SWOT analysis will reveal the competitive advantage Panera Bread has and why this company is in an attractive situation and what Panera Bread must do to strengthen its competitive advantage against rival chains.
Panera Bread Strategy
Neighborhoods and cities all around the country are enjoying a tradition of freshly baked artisan breads from Panera Bread bakery-cafes. A driving force behind Panera Bread was to create “a premium specialty bakery and café experience to urban workers and suburban dwellers” (Thompson, Strickland, & Gamble, 2008, pC-87). Heading into 2007, Panera Bread Company’s market presence was expanding rather swiftly. “Between January 1999 and December 2006, close to 850 additional Panera Bread backery-cafés were opened, some company owned and some franchised. Panera Bread reported sales of $829 million and a net income of $58.8 million in 2006. Sales at franchised-operated Panera Bread bakery cafés totaled $1.2 billion in 2006” (Thompson, Strickland, & Gamble, 2008, pC-87). Panera Bread’s strategy was and still is to make great bread and to make it broadly available. Part of that strategy is to make there cafés a home away from home, where people are comfortable and relaxed. What competitive strategy did Panera Bread use to grow its business? There are a number of ways that companies employ competitive strategies and that can depend on a number of things. Panera Bread’s competitive strategy approach is geared more to a broad differentiation strategy, where the
References: Thompson, A. A., Strickland, A. I., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage: concepts and cases (16th ed.). Boston, Massachusetts: McGraw-Hill/Irwin. Panera Bread Company. (1999-2009). Our menu offers. Retrieved February 27, 2009 from: http://www.panerabread.com/menu/bakery/