Panera Bread Company free essay sample

Panera is a specialty cafe anchored by an authentic, fresh dough artisan bakery and upscale quick service menu selections that include sandwiches and soups. Panera Bread primarily in suburban, strip malls, and regional malls locations that has a unique dining environment and serves higher quality products. Panera Bread`s broad use of differentiation strategy has assisted in their growth and profitability. When it comes to strengthening Panera’s competitive position their rivals have found it difficult to compete with their reputation as the nationwide leader in specialty bread segment, dough making capability, dining atmosphere that includes free Wi-Fi, competes successfully in six segments, AM, chill, Lunch, PM chill, dinner and take home, the menu was designed to incorporate the different tastes of each of these meal times. A SWOT analysis will tell or reveal the competitive benefit Panera Bread has and why the reason this company is in an eye-catching situation and what Panera Bread must do reinforce its competitive benefit against competitor`s chains. We will write a custom essay sample on Panera Bread Company or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page SWOT Analysis is a strategic planning method which is used to assess the Strengths, Weakness, Opportunities and Threats involved identify the aim of the business project or venture and identifying the external and internal factors that are unfavorable and favorable to attaining that objective. STRENGTHS †¢Panera Rewards, building relationships with loyal customers, which improves sales †¢Quality Ingredients, delivering fresh ingredients to all stores is the prime incentive for management. †¢Market Niche, It has pioneer the fast casual dining experience over their competitors speed or drive thru Panera Bread is the nationally leader in the bakery- cafe segment, and has strengths for future expansion and growth without burdening the company`s balance sheet excessively with debt. Attracting customers by using the rewards program which keeps them coming back WEAKNESS †¢A less well-known brand name than some rivals (Starbucks, Applebee`s) †¢They have a very feeble or weak dinner menu. They do not offer any considerable entrees. There are no â€Å"potatoes and meat† dishes on their menu. †¢Sales at franchised stores run a bit higher than those at company-owned stores- why is this occurring? Are franchises better operators? †¢Applebee`s, a direct competitor, has twice or double as many places or locations as Panera. Panera has no presence in several US markets that are fertile ground for many restaurants. Some of these areas include Atlantic City, New York City, Washington DC, and a figure of large markets. Open more outlets, both franchise and company-owned- there is untapped growth potential in a number of suburban markets. †¢Expanding their product line to include current trends such as organic foods, or dietary meals would expand their market as well on where they are focusing at present. †¢Open Panera Bread locations outside the U. S. as market opportunities in the U. S. begin to dry up. THREATS †¢Rivals begin to imitate some of Panera`s menu offerings or dining ambience, thus stymieing to some extent Panera`s ability to clearly differentiate itself from rivals chains. †¢Panera Bread begins to saturate the market with outlets, such that it becomes harder to find attractive locations for new stores and the company`s growth slows. †¢New rivals restaurant chains grab the attention of consumers and draw some patrons away from Panera- in other words, competition from other restaurant chains (either those in the fast-casual segment or other restaurants categories) becomes more intense. The Panera Bread Company possess 4 core competencies. The first is, it has a diverse menu, with lots of variety, constantly experimenting, and high quality food at reasonable prices. Second, it has a strong brand/customer loyalty, best of awards in nearly all markets in 36 states, for example JD Power and Associates satisfaction award for QSR in the Midwest and Northeast. The third is having a strong relationship with existing franchise partners, such as in: ? Employee training and certifications ?Assistance with site selection and marketing ?High satisfaction with concept and support Last core competency is the ability to identify where to locate new stores to serve urban and suburban populations, and by using proprietary software built to analyze data on attractiveness of new locations. An example, the company`s fresh-dough-making capability for fresh baked and quality goods served in a comfortable environment. Panera`s competitors include restaurants in the fast-casual restaurant market such as Applebee`s, Baja fresh and Fuddruckers. Panera Bread also has to compete with common fast food restaurants such as McDonald`s and Wendy. Although, competition is fierce in these markets, Panera has been able to differentiate itself from other competitors. It could be advisable if Panera Bread Company should start to sell fast food and see how it goes. Even to open many branches around the states mostly the busy Cities.