Panera Essay

1266 Words6 Pages
Panera Bread has been and plans to continue expanding their market presence in the highly competitive restaurant industry. They are the national leader in the specialty bread segment and seek to increase their dominance in this segment. Their target market consists of urban workers and suburban dwellers that are looking for a quick service meal but with more pleasing aesthetics than typical fast food restaurants. This space is also known as fast-casual. A company’s competitive strategy lays out how it plans to beat and out-compete its rival companies. Generically, Panera Bread follows a Broad Differentiation Strategy. They strive to differentiate their product from those of their rivals in ways that they believe will appeal to a broad cross-section of customers. Differentiation generally results in increased sales or allows for a premium price due to improved features. Panera Bread seeks to set them apart and to appeal to diverse buyer preferences through differentiated product attributes that will be seen in a premium nature. They seek to enhance buyer satisfaction though the perceived and delivered value of a premium product. Panera Bread has divided their business operations into three main segments: corporate owned bakery-cafes, franchised bakery-cafes, and centralized fresh-dough production facilities. The combination of corporate and franchised owned bakery-café businesses are believed to allow for the fastest and most efficient growth, allowing the company to maintain its dominant position in the market. The centralized fresh-dough operations, which the company views as a competitive advantage, allow for economies of scale, improves quality control, reliability and consistency. The company employs a unit location strategy that, along with sophisticated operation and distribution systems help to maintain and maximize profitability.

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