Anthony MA1N0231
Liisi 0A10F001
CASE 5.1 PANERA BREAD: Occupying a
Favourable Position in a Highly Competitive
Industry
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
PANERA BREAD’S FORCES
DISCUSSION QUESTIONS – 3

What barriers to entry has Panera Bread
created for potential competitors? How
significant are those barriers?
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?
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?
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
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
Panera
Bread
COMPETITOR PROFILING

Background


Financials


Plant capacity, shipping logistics, etc…
Personnel


4P’s
Facilities


Brand loyalty, New products developed, patents, etc…
Marketing


Method of growth, Liquidity, etc…
Products


key personalities, location of offices, etc…
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