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Panera Bread Essay

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1. I believe Panera Bread uses a focused differentiation strategy. It uses this strategy by offering meals that are healthier options than those of traditional fast food. It focuses in on a market of urban workers and suburban dwellers. Panera offers a variety of above average fast food which include: bakery items, classic/signature sandwiches, and soups to meet the needs and wants of all their customers. They also offer a nicer restaurant setting they eating at a typical fast food restaurant like McDonalds or Burger King. Panera wants to give its target market a healthier, affordable, and more stylish/modern environment for them to relax and enjoy their food in.

2. Strengths:
• Panera Bread is known for being popular all over the united …show more content…

• On the other hand, you can also say the threat to new entrants is low because of the astronomical price of opening a restaurant.

Threat of Substitute Products:
• This is very high because there are a number of different restaurants in the industry to pick from
Rivalry:
• A lot of rivalry amongst different companies in the industry, mainly because standing out is such a big part of the industry and drawing customers to your restaurants. This cause a situation where everyone constantly tries to one up each other to appeal to the eye of as many customers as possible.
• Biggest competition: o Starbucks o Chili’s o Applebee’s

4. We can see from exhibit 1, Panera Bread has enjoyed steady growth from 2011-2015. I think if they continue what they are currently doing, they growth will continue to increase and they will be a major player to be looked at in the chain restaurant game.
• Gross Profit Margin 0.73345
• Operating Profit Margin

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