1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?
The strategy of Panera Bread is to provide different deli-style menu´s with a nice atmosphere to their customers. Panera Breads specialized in fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, custom roasted coffees, and other café beverages. The target group of Panera was urban workers and suburban dwellers looking for a quick service meal and a more aesthetically pleasing dinning experience than that offered by traditional fast-food restaurants. So the company want´s to deliver quality foods for customers who don´t have time to eat in a restaurant. The core abilities of Panera´s success are the freshly made breads and also the ambience of the cafes. The signature café design was to create a comfortable atmosphere for the consumers, by also offering free WIFI-connections. The company served their customers in a warm, community-gathering place by associating to feel their guest comfortable. Panera Bread strategy allowed it to compete successfully in five submarkets of the food-away-from- home industry: breakfast, lunch, daytime, “chill out”. The company was trying to succeed better by “Being better than the guys across the street”. They wanted to get new potential customers from the “normal” restaurants.
Panera competes through differentiation. They feel so pride about themselves by offering healthy, fresh foods. Every other branch has to make sure that they offer Panera´s standard to their customers by showing protocols of their products. Panera creates fresh, great tasting food, but they also create a welcoming atmosphere to the consumers. The company makes sure that the looks are identical, so they all have a cozy feeling. To compete on the basis of...