Essay about Business Strategy Panera Bread

801 Words May 11th, 2008 4 Pages
Business Stratgery / Case: Panera Bread Company / Igor Maas / 02.15.2008
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
Therefore I think that there
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My third idea was the opportunity of an international expansion which would allow Panera to become a forerunner in the fast-casual world market. There is nothing similar existing in the European market so far and it might be a great fit to the European culture. Europeans in general care a lot about the food quality and with the ever growing industrialization Europeans spent less time on cooking or going out to full-service restaurants which are also significantly more expensive. An international expansion would be a risky endeavor though. Panera might fail the needs of European customers and end up in a financial crisis by getting no return on its investment. We have just to remember Wal-Mart’s failure in Germany because of misinterpreting people needs even though Wal-Mart had enough financial back ups for economical surviving while Panera would face a financial crisis in the case of failure.
I believe though that Panera should expand their business to Europe and take the risk of hitting the European market. They might do the expansion on a small scale for the beginning and build up restaurants just at some major cities (Berlin, Amsterdam, London). This way Panera can observe people response to their restaurant and reduce the risk of a financial disaster in the case of failure. Panera would be able to create brand awareness among European countries and become a first mover in the fast-casual

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