Case 5.1: Panera BreadTran Le Yen Ha MA2N0235Nguyen Lam Thanh Truc MA2N0229

BUSINESS OVERVIEW

Panera Bread was once known as the St. Louis Bread 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 COMPETITIONPorter 5 force analysis: submit by the

Maike·Boter in 1979whose purpose is to define a high and low

level of market attractivenessFive 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 photoFour 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 topSt.Louis-Based Panera Bread,a chain of

bakery-café’s compney.https://www.panerabread.com/en-us/home.ht

ml

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 > QUESTION1Q1Because 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?

AnswerEconomies of scaleProduct and service differentiation

Economies of scale: refers to the decline in unit costs when production volume increasesFrom 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 differentiationProducts:

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 4What are sources of Panera’s competitive advantage?

AnswerPositional 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 1What 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?

Identify competitors.Learn the strengths and weaknesses of

competitorsGather 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 2Amazon.comAn 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&GP & 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.