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Anthony MA1N0231 Liisi 0A10F001. Case 5.1 Panera bread: Occupying a Favourable Position in a Highly Competitive Industry. Panera bread – history Panera bread today - products The future Discussion questions. Program. Au Bon Pain Co. 1981 + Saint Louis Bread Company (mid-1990s) - PowerPoint PPT Presentation
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CASE 5.1 PANERA BREAD: Occupying a Favourable Position in a Highly Competitive Industry
Anthony MA1N0231Liisi 0A10F001
PROGRAM Panera bread – history Panera bread today - products The future Discussion questions
PANERA BREAD - HISTORY Au Bon Pain Co. 1981 + Saint Louis Bread Company (mid-
1990s) 2008, sales +23% ($941 mln) 2003 – 602 units 2008 – 1270 units 2012 – 1591 units
PANERA BREAD TODAY - PRODUCTS
THE FUTURE Fast Casual category Leading national brand
Positioning strategy Signature foods Savvy execution
DISCUSSION QUESTIONS – 1 How has Panera Bread established a
unique position in the restaurant industry?
How has this unique position contributed to its success?
DISCUSSION QUESTIONS – 1 Good timing Fast + casual (positioning) Customers needs Speciality foods
Window catching -> success
THE RESTAURANT INDUSTRY
DISCUSSION QUESTIONS - 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
Competitive
Rivalry within an Industry
Bargaining
Power of
Suppliers
Bargaining Power
of Custome
rs
Threat of New
Entrants
Threat of Substitut
e Products
PANERA BREAD’S FORCES
Pioneer
Bakery,
artisan.
Healthy Menu
Brand’s recogniti
on
Fast-Food
Casual Dining
DISCUSSION QUESTIONS – 3 What barriers to entry has Panera
Bread created for potential competitors? How significant are those barriers?
•BRAND’S RECOGNITION: • PANERA BREAD =
FAST CASUAL• ARTISANAL BAKERY• HEALTHY FOOD
•PIONEER’S PRESTIGE•20YEARS OF EXPERIENCE
•1,591 UNITS IN US
DISCUSSION QUESTIONS – 4 What are Panera Bread’s primary
sources of competitive advantage? In your judgement, are these sources of advantage sustainable? Why or why not?
•BRAND’S RECOGNITION: • PANERA BREAD =
FAST CASUAL• ARTISANAL BAKERY• HEALTHY FOOD
•PIONEER’S PRESTIGE•20YEARS OF EXPERIENCE
•1,591 UNITS IN US
DISCUSSION QUESION – 1B Do you think Panera Bread will reach its
goal of becoming a leading national brand in the restaurant industry? Why or why not?
APPLEBEE’S
MCDONALD’S
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
Weighting
Competitor #1 rating
Competitor #1 weighted
Competitor #2 rating
Competitor #2 weighted
Panera Bread
Extensive Distribution
0.4 6 2.4 3 1.2
Customer focus
0.3 4 1.2 5 1.5
Economies of scale
0.2 3 0.6 3 0.6
Product innovation
0.1 7 0.7 4 0.4
Total 1.0 20 4.9 15 3.7
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 1st Smartphone
Leader now
User friendly
Steve Jobs
THANK YOU!