Case: 5.1 Panera bread Group 2

Introduction Established in 1981 Ronald M. Shaich is Chairman of the Board and CEO. William W. Moreton is Executive Vice Chairman. Companay mission: A loaf of bread in every arm ®

Question 1 How was panera bread established a unique position in the restaurant industry? How has this unique position contributet to the firm‘s success? Do you think panera bread will reach ist goal of becoming a leading national brand in the restaurant industry?

owners observed that people were searching for fast-high/qualit-food, served in an enjoyable environment  new industry „fast casual“ combination of advantages of fast food sector (speed) + advantage of casual dining category (good food) Establishing the unique position

How to distinguish from rivals? - Known as the bread experts (bread, bagels, sandwiches,..) + - Serves specialty food (sourdough bread bowls, fresh salads, toasted sandwiches)

Positioning

Success!!! This unique position leads to success: Increasing franchising Panera outlets Incrasing of profits over the years Reputation as the bread expert ………… BUT ……… Will Panera Bread become a leading national brand in the restaurant industry?

Competitors in Fast Casual (ranked per Sales in $) 11  Panera Bread 16  Chipotle > 50  Bruegger‘s > 50  Cosi Source:

Will Panera Bread becoming a national leader brand in the restaurand industry? Yes! Why? - increasing number of franchise outlets numer 7 regarding to sales in $ - Panera is already the leader in Fast Casual sector

Question 2 Analyze the restaurant industry using Porter’s five forces model. In what ways has Panera Bread successfully positioned itself against the forces that are suppressing the profitability of the restaurant industry as a whole?

Porter’s forces

Panera Bread’s forces

Question 3 What barriers to entry has Panera Bread created for potential competitors? How significant are those barriers?

Question 4 What are Penare Bread’s primary sources of competitive advantage? In you judgement, are these sources of advantage sustainable? Why or why not

Long Term Trend

Specialty Food

Environment and WiFi to Drive the Gathering Place Business

Best People and Incentives To Retain Them

Application questions - 1 What are the ways that Panera Bread can conduct ethical and proper forms of competitive analysis to learn about potential competitors entering the fast-casual category?

Competitor array – “Market” Key Industry Success Factors WeightingCompetitor #1 rating Competitor #1 weighted Competitor #2 rating Competitor #2 weighted Panera Bread Extensive Distribution Customer focus Economies of scale Product innovation Total

Competitor Profiling Background – key personalities, location of offices, etc… Financials – Method of growth, Liquidity, etc… Products – Brand loyalty, New products developed, patents, etc… Marketing – 4P’s Facilities – Plant capacity, shipping logistics, etc… Personnel – Number of employees, management style, etc… Corporate and Marketing strategies – Objectives, growth plan, etc…

Application questions - 2 Think at least two other businesses that have established unique positions in their industries. How have their unique positions contributed to their success?

Starbucks Products Service Feeling special

Apple - iphone 1 st Smartphone – Leader now User friendly Steve Jobs