Tran Le Yen Ha MA2N0235
Nguyen Lam Thanh Truc MA2N0229
BUSINESS OVERVIEW
 Panera Bread was once known as the St. Louis Bread
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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
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.
一>1>、photo of Porter 5 force
analysis
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
competitors to effect the company .
二、panera bread occupying the
top
 St.Louis-Based Panera Bread,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
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.
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.
Question 3
What barriers to entry that Panera has
created to potential competitors?
Answer
 Economies of scale
 Product and service differentiation
 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
 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:
Panera bread 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.
Question 4
What are sources of Panera’s
competitive advantage?
Answer
 Positional advantages by Michale
Porter
 Resource based theory
 Positional advantages including cost advantage and differentiation
advantage.
 Cost advantage: the company offer the same benefits as
other competitors but at a lower cost.
Panera restaurants 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.
Panera offers 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.
 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: Panera is experts in making bread
 Installed customer base: Panera is the leader in fast casual category
and has many loyal customers.
 Reputation of the firm: Panera has 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.
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 fastcasual category?
 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.
 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.
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.
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.