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Presented By :

Group No . 9
Arjun
Amrish
Hiteshwar Chauhan
Khemchand
Introduction
• Type Public (NASDAQ: PNRA)
• Industry Restaurants
• Founded Kirkwood, Missouri (1981)
• Headquarters Richmond Heights, Missouri, U.S.
• Key people Ken Rosenthal, founder
Ronald M. Shaich, founder, chairman, and CEO
Louis Kane, founder
• Products Quick casual/Bakery-café, including
several varieties of bread, such as bagels
and muffins, cold sandwiches, hot panini, salads,
and soups
• Revenue ▲ US$1.30 Billion (FY 2008)
• Operating income ▲ US$113 Million (FY 2008)
• Net income ▲ US$67.4 Million (FY 2008)
• Total assets ▼ US$674 Million (FY 2008)
• Total equity ▲ US$495 Million (FY 2008)
• Employees 4,746 full time (December 2005)
• Website www.panerabread.com
Q1. How has Panera Bread established a
unique position in the restaurant industry?
How has this unique position contributed to
its success?
How Panera Bread established
a unique position
• Mix specialty food
• Offers
– A variety of artisan
– Specialty breads, along with bagels,
pastries and baked goods
• Provide an inviting neighborly
atmosphere
• Chill-Out Time
How has this unique position
contributed to its success
• Grow from 369 company owned and
franchised units to over 1362 today
• Known as the Nation’s bread expert
• In 2005, Panera ranked 37th on Business
Week's list of "Hot Growth Companies",
earning $38.6 million with a 42.9%
increase in profits.
• In 2009, the restaurant review service Zagat
named Panera one of the most popular
restaurants for eating on the go. Panera
was also rated #1 for Best Healthy
Option, Best Salad, and Best Facilities,
among restaurants with fewer than 5,000
Q2. Analyze the restaurant industry using
Porter’s five forces model. In what ways has
Panera Bread successfully positioned itself
against the forces that are suppressing the
profitability of the restaurant industry as a
whole?
Industry Analysis: Porter’s
Model

7
Positioning Strategy of
Restaurants
High
Food Quality

Low

Slow Speed of High


Service
First mover advantage of the
changes in Restaurant Industry
1.People were increasingly looking for
products that were “Special”
2.They didn’t want to give up the
convenience of quick service
Q3. What barriers to entry has Panera Bread
created for potential competitors? How
significant are these barriers?
Barriers to entry for potential
competitors
 Barriers to entry:
• Economies of Scale
• Product Differentiation
• Capital Requirements
• Cost advantages independent of size
• Access to Distribution Channels
• Government Policy
Q4. What are Panera Bread’s primary
sources of competitive advantage? In your
judgment, are these sources of advantage
sustainable? Why or why not?
Primary Sources of Competitive
Advantage
• Industry Analysis
• “Fast-Casual”
• Positioning
• Execution
• Brand Equity
Thank you

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