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Case 5.1: Panera Bread

Case 5.1: Panera Bread. Tran Le Yen Ha MA2N0235 Nguyen Lam Thanh Truc MA2N0229. BUSINESS OVERVIEW . Panera Bread was once known as the St. Louis Bread Company, but was acquired by Au Bon Pain Company in 1993. There are 1,504 locations as of September 2011

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Case 5.1: Panera Bread

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  1. Case 5.1: Panera Bread Tran Le Yen Ha MA2N0235 Nguyen Lam ThanhTruc MA2N0229

  2. BUSINESS OVERVIEW • PaneraBread was once known as the St. Louis Bread Company, but was acquired by Au Bon Pain Company in 1993. • There are 1,504 locations as of September 2011 • CEO and founder: Ron Shaich • 2010 Sales roughly $3 Billion • Food: So good. • Current Stock Price: $141

  3. 一、Panera bread :HIGHLY COMPETITION • Porter 5 force analysis: submit by the Maike·Boter in 1979 • whose purpose is to define a high and low level of market attractiveness • Five forces close structure composed of affected clients and profits, any change of 5 power could attract companies to exit or enter the market.

  4. 一>1>、photo of Porter 5 force analysis

  5. 一>2>、the define of the photo • Four forces--from the power of bargaining capacity of consumer and ssuppliers, threats from potential entrants and threats from Threat of substitute products combine to create the fifth power: threats from existing competitorsto effect the company .

  6. 二、panera bread occupying the top • St.Louis-Based PaneraBread,a chain of bakery-café’s compney. • https://www.panerabread.com/en-us/home.html • It has grown from 602 company owned in 2003 to 1270 today. • It has high profitablity despite of three threats that is explained in two :positioning ,excution

  7. 二>1> QUESTION1 • Q1Because the owners of the newly combined companies observed the consumers’ willing and conclude that the consumers wanted good food and served quickly in an enjoyable environment,so they do some innovations to be unique position , and I think they will reach the goal ,because the changing of innovation can create the profitablity to the company. By observing the trends and listening to customers,they will make goal reality.

  8. 二、>2>question2: • In analsisy of the compay by using Poter’s 5 Force model , the leadship of Panera Bread take care the consumers’ need completely ,and they reach the level of high quality and fast service. And they created “fast casual”that a new category .So the company can avoid the effects of five threats.And the company’s sales increased strikingly ,and the company’s chain opened and spread all over the place.

  9. Question 3 What barriers to entry that Panera has created to potential competitors? Answer • Economies of scale • Product and service differentiation

  10. Economies of scale: refers to the decline in unit costs when production volume increases From 602 company owned and franchise in 2003 to 1270 today. There were 17 regional fresh dough facilities to server 1270 locations. By having a large number of stores, the company was able to use economies of scale to lower the product price

  11. Product and service differentiation Products: Provide high quality, specialty foods like artisan bread, hand-tossed salad, signature sandwiches and hearty soup served in a sourdough bread bowls Services: Panerabread stores are open for breakfast, lunch and dinner. The company also provide catering services via Panera catering business. The store environment is enjoyable, warm and inviting.

  12. Question 4 What are sources of Panera’s competitive advantage? Answer • Positional advantages by MichalePorter • Resource based theory

  13. Positional advantages including cost advantage and differentiation advantage. • Cost advantage: the company offer the same benefits as other competitors but at a lower cost. Panerarestaurants offer special service that satisfy customers’ need for both fast and and healthy, quality products with a reasonable price. • Differentiation advantage: the company deliver benefits that exceed those of competing products. Paneraoffers high quality, specialty baked goods and other food that other fast food restaurants are not able to offer. They also provide a more enjoyable environment compared to other fast food restaurants.

  14. Resource based theory: According to the resource-based view, in order to develop a competitive advantage the firm must have resources and capabilities that are superior to those of its competitors. • Proprietary know-how: Panerais experts in making bread • Installed customer base: Panerais the leader in fast casual category and has many loyal customers. • Reputation of the firm: Panerahas strong reputation. • Brand equity: Panera is a succesful brand which is different from other restaurant and therefore high equity. The Harris Poll EquiTrend® study measures consumer brands within 46 different categories. Brand Equity ratings are driven by three factors: Familiarity, Quality and Purchase Consideration: Panera Bread ranks highest among casual restaurants.

  15. Application question 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?

  16. Identify competitors. • Learn the strengths and weaknesses of competitors • Gather information: - business strategy - development orientation in the upcoming period - the product will be launched on the market - the speed of business: rise or decline.

  17. Make research and surveys of market tastes and needs of consumers. • Make a research about the quality of services of competitors' restaurants. Ex: experiencing their food, challenge their staffs by giving them some request... • Meanwhile, the marketing strategy is also important, they have to know clearly how their rival do to maintain the business.

  18. Application question 2 Amazon.com • An online store that sells books, movies, games, DVDs, music CDs, computer software and other items (like Amazon Kindle). • It is the largest online store right now. • The original name was Cadabra.com but was changed to Amazon.com later, It named after the world's second longest river. • Amazon has established separate websites in Canada, the United Kingdom, Germany, France, Japan and China. It also provides international shipping to certain countries for some of its products.

  19. P&G • P & G is a consumer goods conglomerate of U.S. multinationals located in list Fotune 500 by Fortune magazine voted annually based on gross income and contribute to the national budget through taxes. • P & G is based in Cincinnati CBD, Ohio and specializes in the production of consumer goods are very diverse. • P & G was ranked # 5 in the list of most admirable company of Fortune magazine in 2011. • P & G is famous for many business innovations including brand management and product advertising via radio - television.

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