The strategy of the panera bread bakery cafe
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I.What is Panera Bread's strategy? What type of competitive advantage is Panera Bread trying to achieve?
II.What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies?
III.What is your appraisal of Panera bread's financial performance? How well is the company doing financially? Use the financial ratios in table 4.1 of chapter 4 as guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Panera's recent financial performance
IV.Which rival restaurant chains appear to be Panera's closest rivals?
V.What strategic issues and problems does Panera Bread management need to address?
VI.What does Panera Bread need to do to strengthen its competitive position and business prospects vis-a-vis other restaurant chain rivals?
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Abstract : Case study Established in 2007, Panera Bread is a Bakery-cafï¿½s born from "Saint Louis Bread Company". This firm has quickly succeeded to become one of the leaders of the US fast-casual restaurant sector. In an industry characterized by aggressive competition, Panera Bread has adopted a competitive strategy that provides several competitive advantages. The aim of the group is to set up about 2000 cafï¿½s in 2010. The general strategy is to make good bread broadly available to consumers across US. The strategy of the marketing department was to insist on the dining experience more than on the price. The aim was to convince the consumer that when you eat in a Panera Bread bakery cafï¿½, it is good value for money including high and healthy quality for reasonable prices. The marketing research knew that the customer satisfaction rate is high, and when a customer eats for the first time in a Panera Bread bakery cafï¿½ he will certainly come back for more. So the strategy was to get more first time diners into the Panera Bread bakery cafï¿½ by promoting prices, product merchandising or offering sponsorship of local community charitable events. Other marketing actions were displayed to attract customers. The strategy was to improve the appeal of the bakery cafï¿½ by describing them as a "neighborhood gathering place". More abstract from The strategy of the "Panera Bread" bakery-cafe[...] Nevertheless, Panera Bread has also serious competitors in this business. We can see that three restaurant chains appear to be Paneraï¿½s closest rivals: Applebeeï¿½s Neighbourhood Grill and bar Applebeeï¿½s is a broadly extended company that is located all over the United States with 1730 locations in 49 states. Moreover, this firm is internationalized and has about 70 locations in 16 foreign countries. Applebeeï¿½s have more locations than Panera Bread Company for the moment, but Panera Breadï¿½s goal is to have 2000 locations across the globe in 2010. [...]
[...] The opening of new Panera Bread stores is also a sign of financial health. The net cash provided by operating activities has grown since 2002 which means that operating activities are doing well. Thanks to this cash and to the working capital, the firm will be able to reinject the money in investment without borrowing money or raising more capital. Moreover, by seeing the net cash used in investing activities, we can see that every year the firm use a lot of this cash to invest. [...]
[...] The customer satisfaction is one of the strengths of Panera Bread Company. And usually when the customer is satisfied by the offering and product of a firm, he is loyal to the company. Then, the firm has to work on the customer satisfaction by always trying to enhance the menus and to create an inviting ambience. Panera Bread can also set up a loyalty program which will provide special advantageous offerings for the loyal customers. - To compete in a more efficient way with the big competitors. [...]
[...] This core competence is the source of success in the marketplace of Panera Bread. The core competence enables the company to manufacture a high healthy quality product at a reasonable cost. Moreover, the production of artisan bread is knowledge-based; it resides in the knowhow of the trained bakers. This fresh dough making is a special capability that gives competitive advantages by ensuring good quality. The dining ambience of the restaurant is also another core competence because itï¿½s a central activity in the strategy of the firm. [...]
[...] - How to improve the broad differentiation strategy used by Panera Bread? This strategy, which is the key of Panera Bread success, had allowed the firm to compete better and to have several competitive advantages. Without this strategy, Panera Bread would not be able to meet such a success in a fiercely competitive industry. 6) What does Panera Bread need to do to strengthen its competitive position and business prospects vis-a-vis other restaurant chain rivals? We have seen that Panera Bread is growing every year and will expand a lot in the future. [...]
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1 Panera bread company Case study | 09/29/2010 | Business & market | Business strategy | .doc
2 Business case study: Panera Bread Case study | 02/19/2008 | Business & market | Marketing | .doc
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