-
Essay / Panera bread chain - 705
1. In the case described, Panera Breads' strategy is to aggressively expand its market presence in North America and improve the quality of its customers' dining experience. As for how Panera Bread is evaluated under the five generic competitive strategies, the group determined that it was the lowest cost supplier. Best-cost provider is considered a hybrid strategy combining both differentiation strategies and best-cost strategies to provide the best value to customers compared to other competitors. To make it different from other fast casual dining establishments, Panera Bread has made available a wide variety of items on its menus and established a premium dining environment. When it comes to being a low-cost provider, the average check size is $8-$10 at Panera Bread. This is reasonable since most of Panera's competitors are in this price range. Panera Bread also offers a higher quality assortment of foods, creating value for the customer. The group believes that Panera Bread is gaining a competitive advantage in the dining experience and offering higher quality food products at lower prices than its competitors.2. A SWOT analysis looks at a company's strengths, weaknesses, opportunities and threats. StrengthsPanera Bread has many strengths as it has shown major growth since its inception. They now have over 1,500 stores and $1.8 billion in sales. Some of these include the ability to differentiate yourself from competitors, market research, and quality catering. Panera prides itself on being a premier “value for money supplier.” Panera offers quality food in a quality dining room at an affordable price. This allows them to compete in a highly competitive North American food industry.WeaknessesThe team had difficulty seeing middle of paper......es. The bread manufacturing plant employs more than 1,300 people and has daily trips to major restaurants within a 300-mile radius. All products are made without chemicals or preservatives to add to the Panera quality. The group appreciates that Panera Primary uses an integrated approach to its distribution processes. This form of backward integration reduces costs for Panera and simplifies delivery. However, Panera receives orders from other logistics companies for certain products. ServicePanera definitely creates value for its customers through its superior service by providing a relaxed, casual dining atmosphere and providing better quality food in a timely manner. As previously stated, Panera tries to establish a competitive advantage by offering differentiated products, high quality meals, and offering higher quality foods at the same or lower price than its competitors..