Quiz 2

Name: Hafiz Abdul Basit

ID# S2018266042
Course: IT Entrepreneurship
Course code: MG366
Section: V1

How has Panera Bread established a unique position in the

restaurant industry?
Panera Bread established a unique position in the restaurant industry by using
the strategy of creating a new category which is called “fast casual” in the
industry. Panera successfully capture the advantages of both the fast food
category (speed) and the casual dining category (good food) as this category
offer consumers with the alternative they desire. ‘Fast casual” has positioned
Panera Bread in unique position as well as contribute to its success.
Panera had taken action to distinguish itself from other rivals such as
Starbucks. Panera had further their services by providing catering services to
grow their business and obtain an advantage over rivals. The company also
suggested a new time of day to eat specialty foods, calling the time between
lunch and dinner “chill-out” time. Panera specializes in meeting four consumer
dining needs (breakfast, lunch, daytime "chill out" and take home bread hand)
by offering hand-tossed salads, signature sandwiches, and hearty soups served
in edible sourdough bread bowls along with hot and cold coffee drinks. In
addition, the company also offers an inviting neighborly atmosphere adding to
their appeal as well. The fast-casual category has added a bonus to the mix-
specialty food which lead Panera as the nation’s bread expert.

How has Panera Bread’s unique position in the restaurant

industry contributed to the firm’s success?
Panera has established a unique position in the market by having its products
that are strongly differentiated from its rivals. In addition to that, Panera also
known for its award-winning bakery expertise which will lead the company to
be recognize as nation’s bread expert. According to Wall Street Journal, Panera
scored the highest with customer loyalty in their market niche.
Moreover, Panera is in a strong financial condition with sufficient of financial
resources to grow their business further. The revenue of Panera Bread is
approaching almost $1 billion, this shows that Panera Bread is a dominant
force. In order to stay competitive and profitable in the industry, Panera has
taken action to regularly reviews and revises their menu so that they are able
to sustain their regular customers and make changes accordingly to customer
preferences and be responsive and alert to various seasons of year.
In addition, Panera Bread has already existed in market for two decades of
experience and gain customers recognition and trust. This will then be their
one of significant competitive assets in the restaurant industry.

What barriers to entry has Panera Bread created for

potential competitors?

Panera bread has created high entry barriers in fast casual food market. Panera
bread’s revenues reached more than billion, which provides them a huge
power to surpass other restaurants with a better pricing models. Considering
the porters five forces, reputation along with high investments and low profit
margins are the entries of barriers for new entrants of fast casual food
business. In addition to the above even though, threat of rivalries and threat of
substitutes are high, the primary advantages of Panera bread are its brand
reputation and the expertise in baking foods.
Since Panera bread has a first mover advantage with huge customer base
which are loyal to the eatery. As an established industry incumbent, it has set
processes to provide fast service and by the time the competitors try to imitate
the Panera’s casual foods, they can come up with new items based on the
customer preferences and continuously innovating their food product creation.

What are Panera Bread’s primary sources of competitive

advantage?

1. Position in the industry

2. Brand strength
3. Atmosphere
4. Distinctive products
5. Customers’ loyalty
6. Financial Performance
Brand strength, location, neighborly atmosphere of the restaurant, specialty
bread with distinctive taste and quality are some of the primary sources of the
competitive advantage owned by Panera Bread in today market. Panera Bread
has strong brand strength over its competitor. The company has done a lot of
renovation to the company to reposition their company on the fast casual
category. Customer can feel confidence toward the taste of the food and the
dining environment solely based on the brand name of the Panera Bread.

What are the ways that Panera Bread can conduct ethical
and proper forms of competitive analysis to learn about
potential competitors entering the fast casual category?

There are some possible ways where Panera bread can conduct competitive
analysis. They are:

1. They can gather info regarding the various companies in play. The product
that can be competitive in the market is looked at first and should be paid
attention.

2. The competitors in the market can be identified and look at their strengths
and negatives.

3. They gather info regarding their business strategy, how they are orienting
themselves by developing in the future periods, they must look at the products
that are going to be launched in the market. The speed of the growth of the
business either rises or declines.

4. The company must make market research and identify the tastes and needs
of the consumers.

5. The quality at which the competitors are rendering the services must be
carefully studied.

6. The marketing strategy to identify how the competitors are staying in the
competition.

7. They can study their supplies and look to plan towards forwarding
integration.
8. They identify the strength and weaknesses of the competitors and identify
business strategies.