Tommy Essay

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5. Which (Porter’s competitive) business strategy is Panera Bread using? Do their value chain activities and competencies support this business strategy? Give evidence to support your answer PBC uses differentiation strategy because the company provides high quality product and superior service with a premium price via “Concept Essence”. Concept Essence included a focus on artisan bread, quality products, and a warm, friendly, and comfortable environment. PBC also promotes a strong emphasis on customer service, brand management, and the use of technology in their cafes. There are several value chain activities and competencies support this business strategy 1. Inbound Logistics: PBC operate 23 Company-owned fresh dough facilities, which service substantially all of Company-owned and franchise-operated bakery-cafes. The company’s fresh dough deliver fresh ingredient daily to the bakery-cafes through a leased fleet of temperature controlled vehicles. The optimal maximum distribution range is approximately 300-500 miles. Fresh dough is the key to PBC high-quality, artisan bread, and fresh produce is essential to their quality salads and sandwiches. So, it’s true that fresh dough facilities have helped them to ensure consistent quality at their foods. 2. Operation: Operating performance needs to be stressed, as it is the other half of the perceived value of their product. The ability to consistently produce a quality product is essential, and keeping each unit up to standards will keep the Panera Bread brand strong. Firstly, in order to serve the products with a premium price, PBC uses fresh dough which is supplied daily and product by baking all they long. Secondly, PBC operated in 3 business segment: company-owned bakery-café (585 stores), franchise-café (795 stores), and fresh dough (23 fresh dough facilities). 3. Marketing and sales: The company

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