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?
Establishing the unique position
• 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)
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:
http://www.qsrmagazine.com/reports/qsr50-2013-top-50-chart
Will Panera Bread becoming a national leader
brand in the restaurand industry?
Yes!
Why?
- increasing number of franchise outlets
- 2013 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
Weighting
Competitor Competitor Competitor Competitor Panera
#1 rating
#1
#2 rating
#2
Bread
weighted
weighted
Extensive
0.4
Distribution
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