Panera Bread Strategy Essay

1230 Words Mar 20th, 2009 5 Pages
Running head: PANERA BREAD CASE
Title: Panera Bread Strategy
Ron Johnson
March 1, 2009
Southwestern College Professional Studies Abstract
This case study is about Panera Bread Company and its strategy it wishes to employ to become the best brand name of fresh bread in the United States. Panera Bread’s use of a broad differentiation strategy has helped their profitability and growth and rivals have found it hard to compete with the competitiveness of Panera Bread. A SWOT analysis will reveal the competitive advantage Panera Bread has and why this company is in an attractive situation and what Panera Bread must do to strengthen its competitive advantage against rival chains.

Panera Bread Strategy
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In this case Panera Bread has set itself apart from its rivals by offering specialty type foods that are outside the norm. The bakery menu offers pastries and sweets, granola parfait, baked egg soufflés, breakfast sandwiches and of course, freshly baked breads to include bagels. They also have a café menu that offers hand tossed salads, sandwiches, drinks, and soups. To top things off, they even offer a kids menu, so Panera Bread caters to the entire family. Panera Bread Company went as far as starting a catering program to extend its market reach (Thompson, Strickland, & Gamble, 2008, pC-92). “Everyone enjoys choices, especially when they're fresh, fun and spontaneous. Right now at Panera Bread, there are plenty of tempting selections to captivate, tantalize and energize your bread-lover's soul as we celebrate the delicious rewards of the baker's craft” (Panera Bread, 2009). What competitive edge does Panera Bread have if any? Panera is attempting to achieve a longer lasting, more profitable competitive advantage by their capability to offer unique or specialty type items. Also, their commitment to put there all into everything they offer their customers. For example, Panera offers 4 different flavors of coffee, dark and light roast, hazelnut, and decaf. What is important is the work they put into making the coffee. “We believe that coffee is sacred. And that making it requires the utmost attention —from the bean to the cup. So we roast our coffee beans in

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