Case Study 5.1 Panera Bread

1649 Words May 18th, 2013 7 Pages
Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not?
Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both
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It captures the key elements of industry competition which are rivalry among existing firms, threat of substitutes, threat of new entrants, bargaining power of suppliers and bargaining power of buyers. (IRELAND, Bruce R. Barringer & R. Duane)
Rivalry among the existing firms
The restaurant industry is a very competitive industry. Panera Bread competes itself with a lot of competitors that can bring negative impact on the company’s revenue and market share. In order to stay profitability in the highly competitive restaurant industry, Panera Bread sees the opportunity of the consumers wanted good food served quickly in an enjoyable environment and has created a position that appeals to fast-food consumers and casual dining consumers. Besides, Panera Bread has also added a bonus which is specialty food to make itself as the leader in fast-casual category and distinguish from its rivals. Furthermore, Panera Bread has lessened the threat by creating catering services as well as providing an inviting neighborly atmosphere to its appeal.
Threat of substitutes
There are three main determinants that measure the strength of threat of substitutes which include availability of substitutes, competence of substitutes in terms of price, quality,…

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