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Panera Bread Core Competencies Essay

Panera Bread competes in a very competitive industry with many competitors. They have been able to remain profitable for years, and maintain high customer satisfaction ratings. In this essay I will explore panera bread’s core competencies and how they help panera stay successful in the market.

Essay 1

Panera Bread’s Strategy

The success of the business is due to the fact that it has developed an appealing image and brand identity. The company’s logo was inspired by a roaring steam engine, which represents motion and power (Thompson 615). However, in order to broaden its market, this firm has already established a catering service, for example, individuals need it to plan parties or other gatherings; as a result, it should provide these types of successful services when it earned more than $80 million in the fiscal year 2004/05 from this service. The closest fit strategy among the five generic competitive methods is most closely observed.

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The goal of this firm is to attract local clients with high-quality food options at fair pricing, according to Thompson (615). It also needs to develop a loyal customer base by providing quality food items, an ambiance, and quick services in order appeal to target consumers. The diverse strategy would work for this company because Panera Bread’s main objective is to attract local customers with high-quality foods at reasonable prices (typical meal costs $7 -$12), as stated by Thompson (615). However, the competitive advantages are.

Panera’s Closest Competitors in Accordance with the Information of Exhibit 9

As previously stated, competitive position is determined by many factors (about 21 prominent fast-casual restaurant companies), including the number of locations, financial condition, and menu categories; nevertheless, owing to the fact that various states exist, it may be argued that Chili’s Grill and Bar, Cracker Barrel, and Starbucks are Panera Bread’s main competitors.

According to exhibit 9, Cracker Barrel has around 527 combination retail outlets and restaurants in 42 states, while Chili’s Grill operates in more than 1074 locations in 49 states and 23 countries. Starbucks has a presence in the worldwide market with 3000 sites and over 7500 locations in the local market.

However, the number of restaurants and company operations in other countries is only one aspect to examine when looking for closest rivals; but, California Pizza Kitchen, Jason’s Deli, Brinker International, Cracker Barrel, Qdoba Mexican Grill, and Starbucks all have specialized foods as well as popular meals.

Au Bon Pain, for example, made $245 million in 2005. California Pizza Kitchen made approximately $480 million that year, Qdoba Mexican Grill brought in over $2.5 billion, and Starbucks raked in about $6.4 billion; however, Panera’s closest competitors are Starbucks when all factors are considered.

The Strategic Concerns and Problems Those Need to Concentrate by the Management

As a result, this business should broaden its target market because it has primarily targeted urban workers and suburban inhabitants to create demand for the bakery and café; on the other hand, major rivals have concentrated their efforts on a larger audience. Panera Bread Company has sought to diversify its revenue sources while also increasing segment profitability through product innovation and efficiency. In this regard, the organization’s emphasis on marketing methods has been aimed at improving the quality and demand of breads and baked goods. Other strategic issues and difficulties, however, remain –

The owner of a restaurant located in the right area might experience better rewards than those that locate in areas with fewer customers. The company has succeeded by locating a good place for the eatery; as a result, the management should always explore new markets, taking market research studies and population numbers into account.

Because they had achieved competitive advantages by implementing some successful marketing strategies to promote awareness and improve multiple meal occasions, the management team implemented a new campaign called “chill out.” Since the competitors’ locations are one of the most crucial strategic issues, management must increase purchasing demand and create new client sources. The company does not offer single unit franchises, which hampers its growth, so the management teams wanting to expand their business by opening a number of franchised bakery-cafés to meet development goals.

Essay 2

Case study Established in 2007, Panera Bread is a bakery-caf? founded on the principles of “Saint Louis Bread Company.” This business has achieved rapid success in the fast casual restaurant industry, becoming one of its leaders. In an industry with intense rivalry, Panera Bread has taken a competitive approach that provides several competitive advantages.

In 2010, the goal of the organization is to establish at least 2000 cafes. The overall plan is to make high-quality bread readily available to customers across the United States. The marketing department’s aim was for them to emphasize the experience rather than price. It was their objective to persuade customers that eating in a Panera Bread bakery cafes is a good value when considering both high and healthy quality while staying within reasonable limits

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The campaign’s objectives included determining how to attract new customers. The study found that customer satisfaction is high, and when a consumer dines at a Panera Bread bakery cafe for the first time, he or she will return. As a result, the goal was to increase the number of first-time visitors to Panera Bread bake shops by advertising pricing, product merchandising, or providing local community charity event sponsorship. Other marketing methods were utilized to entice consumers.

The aim was to enhance the appeal of bakery cafés by branding them a “neighborhood gathering place.” However, while Panera Bread is more abstract from Applebees, it still has formidable rivals in the food service industry. Three restaurant chains appear to be Paneras closest competitors: Neighbourhood Grill and bar Applebees is a nationwide firm with 1730 locations throughout 49 states.

The original restaurant has 7000+ employees, and it supplies meals to 1 million people every day. Furthermore, this company is internationalized with 70 locations in 16 different countries. For the time being, Applebee’s boasts more sites than Panera Bread Company, but Panera Bread’s goal is to establish 2000 restaurants across the world in 2010.

Well, the popularity of Panera Bread is nothing new. Since 2002, Panera has more than doubled the number of shops it operates. Not only did they expand their business, but they also increased profits considerably more each year since then. The growth in Panera’s net cash provided by operating activities indicates that its operations are going well . Furthermore, by looking at the firm’s net cash used in investing activities, we may see that it uses a lot of money every year to invest.

“Panera Bread Company is a consumer-friendly organization that strives to provide exceptional quality food at reasonable prices, as well as great service every day. We care about our customers and their experience with us because we know how important it is for them to like what they eat and enjoy the service that Panera provides.” – “To compete in a more efficient manner with bigger rivals.”

Panera Bread has an unquestionable knowledge of the baking process. As a consequence, Panera executives are highly skilled in product development and management. The company’s bread is notably better for you than that of its competitors because it uses whole grains with less white flour, resulting in fewer calories but more nutrients. For example, using fresh dough to make artisan bread allows the bakery to be more flexible with ingredients during seasonal changes while maintaining quality standards throughout the year. This new ability gives competitive advantages by assuring high quality. The restaurant’s dining ambience is also a key competence since it is an important part of the firm’s strategy.

[6] How can Panera Bread improve its competitive position and business prospects versus other restaurant chains? This approach, which is at the heart of Panera Bread’s success, has allowed the company to compete better and gain a number of competitive advantages. Without this strategy, PanERA bread could not have achieved such a successful in a fiercely competitive market. 6) What steps must Panera Bread take to strengthen its competitive position and business opportunities versus rivals in the food service industry? We’ve noticed that each year, Panera Bread expands and develops further.

Essay 3

Peteraf, Gamble, and Strickland (2018) define a core competence as “an activity that a firm performs well internally,” whereas a distinctive competence is “something the company does better than its competition.” Core competencies are frequently distinct talents. Baking your own bread from scratch using limited ingredients is both a core and unique skill for Panera.

The skills to be able to communicate effectively with buyers. Customer service, on the other hand, is one of your more essential responsibilities as a business owner. You’ll need to know how to respond quickly and work well with people who may have different ideas about what they want than you do. It’s important not only for customer experience but also for client retention that stores can fulfill their clients’ demands in various ways without making them feel like they had no choice in the matter. These services include catering and delivery, as well as using high-quality ingredients.

• Consider Panera Bread’s competitors, including Bistro DuPage and Chipotle Mexican Grill. Compare the two firms using competitive analysis methods.

Panera Bread was particularly pleased with the Panera 2.0 initiative’s positive effects, including increases in sales and fewer customer service-related problems at participating locations (Thompson, 2016 p C-153). Chipotle has had difficulty recovering from its food poisoning scandal, according to Bowman’s 2017 analysis. Recovery will take some time, according to a variety of marketing initiatives that have not shown promising outcomes.

Chipotle, on the other hand, is a big chain with more resources to devote toward customer service. For example, although Panera offers twice as many cafés in the United States as Chipotle does restaurants in the United States , there are nearly three times as many café locations outside of the country (Thompson, 2016). Chipotle’s $4.5 billion in revenue (2015) also significantly outweighs Panera’s $2.7 billion from that year (Thompson, 2016).

Essay 4


Panera Bread was founded by a firm known as the antecedent of fast casual eateries and a pioneer in the field called Au Bon Pain, which began in 1976. Louis Kane, a French oven manufacturer, started this company as a bakery. Soon thereafter, Louis Kane sold the company to Ronald Snaich, who attempted to grow it through the opening of 13 stores but had to close most of them due to lack of success and expansion. This is when Ronald Snaich joined Panera Bread and began an era of success.

During this time, the company’s managers concentrated on reducing its debt. In 1985, Snaich expanded sandwichesselling to stores and noticed that customers preferred to purchase bread from the stores instead of making their own sandwiches. This observation led to the formation of a fast casual specification for the firm as partners began selling freshly prepared sandwiches and coffee in addition to their fast food rivals’ offerings. By 1991, the company’s revenues had increased considerably, and it became the industry leader in the fast food bakery category. By 1994, the firm owned 200 shops with sales of $183 million.

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The partners decided to expand into the suburban market after learning that the primary target audience consisted of white-collar business employees in cities like Boston. However, Snaich discovered another prospective company opportunity by converting fast service bakery shops into a chain of cafés. Panera expanded through new company-owned bakery cafes, business purchases and franchises in the 2000s.

Fast-casual restaurants are those that have fewer frills, emphasize healthier options, and are designed for less time investment. They utilize local ingredients, offer more sustainable alternatives, and focus on fresh items. Panera Bread’s menus include a variety of foods based on freshly baked bread, such as they target sustainable and fresh ingredients. The meals served by Panera Bread restaurants now contain a wider selection of goods based on freshly baked bread; they prioritize environmentally friendly products.

Despite aggressive and strong competition from the side of other expanding fast-casual franchises, Panera Bread maintains its position as the industry leader. In May 2010, Ronald Snaich stepped down and was replaced by William Moreton, who is aiming to develop the firm and preserve its distinctiveness in an rapidly developing market with a lot of imitators attempting to replicate what it accomplished by Panera Bread.


The fast food industry is one of the most competitive and flexible, with changing trends and new technologies constantly evolving. There’s a lot of money to be made here! To be able to invest in improvements and adjustments that make the business more competitive and flexible, as is required in such a quick-growing sector like fast casual dining.

In the automobile business, Daimler is a manufacturer of automobiles. The firm produces transportation machines and sells them in different countries around the world under various brands. As a result of long-term partnerships and agreements, Daimler has been able to improve the quality of goods it receives while also lowering prices as a result of lucrative contracts and deals.
Panera Bread is a well-known brand name that provides a good brand image and has been linked with fresh and sustainable food, pleasant restaurant interiors, and quick service.

The business requires special manufacturing equipment. Since Panera Bread is focused on producing high-quality bread as the basis for a variety of menu products, it needs advanced equipment that can produce high-quality bread quickly to serve as many people as possible.
Under the corporate umbrella, Panera Bread has a staff of some 1,800 employees and an impressive management team. Panera bread’s management team is big and comprises individuals responsible for various parts of the business, such as marketing, innovation, IT, and finance.

To keep consumers interested and loyal, Panera Bread’s managers are committed to continuous service and product improvement.
Managers and leaders. The company tries to keep the best talent in the industry by offering competitive salaries and profit-sharing programs. Panera offers superior training and development opportunities, as well as a progressive leadership program. Managers typically recruit from internal referrals or external advertising such as career websites, job banks, and social networking sites like LinkedIn.

Panera is a firm that likes to be in control and protect its secrets. As a company competing in an industry with numerous competitors, Panera Bread must maintain trade secrets in order to stay competitive. Obviously, since Snaich states that Panera “style isn’t so simple to understand,” the business has done well at keeping its trade secrets (Wheelen, Hunger, Hoffman and Bamford16-9).

Inventive solutions. One of Snaich’s main objectives has always been innovation and the pursuit of new market possibilities. He and his partners have been focused on growing markets that no one else recognized, resulting in a powerful company with a competitive advantage that is very difficult to imitate.


Baking fresh bread is a thing we do. Panera Bread is a fast-casual restaurant chain that specializes in baking and serving homemade bread throughout a variety of menu items such as sandwiches, pastries, and cookies, as well as salads and soups. This feature distinguishes the business from the competition in the fast-casual dining industry.

Panera Bread uses marketing and advertising to promote and sell its products. One of the elements that aids in the promotion and marketing of Panera Bread items is the brand name. Furthermore, the firm employs a variety of marketing tools to gain new consumers.
Harvest is a personal network that exists on the internal domain. The personal network ensures unique atmospheres and rapid and easy communication between managers and workers, as well as information about sales, market success, and company development.

Supply chain management. For decades, Panera Bread’s supply chain has been altered to select the greatest suppliers and most efficient distribution methods in order to assure the quality of its goods (Wheelen et al. 16-15). Snaich, for example, personally oversaw the lettuce supply chain to ensure that it arrived as fresh as possible on restaurant plates, minimizing transit time from farm to fork.

Strategic management. Managers of Panera Bread are frequently called upon to make complex judgments and act swiftly in a variety of trying circumstances. During the recession of 2008, for example, Panera bread targeted the middle class consumers, ignoring everyone else.
Panera Bread’s distinctiveness stems from the fact that it provides a wide range of services and experiences to its customers. Panera Bread distinguishes itself in the market because it is able to handle a wide variety of services and experiences.

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For example, the cafés serve coffee and pastries as well as lunch and breakfast menus that include soups, pastas, and sandwiches, along with hot and cold beverages. Furthermore, Chipotle Mexican Grill is not comparable to Panera Bread since the latter specializes in ethnic cuisine. Furthermore, Panera maintains pleasant restaurant designs that create an atmosphere similar to at home while also offering free Wi Fi.

Core Competencies

Finding of fact #1

Due to the fact that the increasing popularity of a firm like this attracts more competitors to the market and makes it harder for one to stand out, competing within such an industry as a company is tough.

According to Snaich, who was concerned about the preserve of the company’s distinctive character, “if it isn’t unique, there’s no need for the business to exist” (Wheelen et al. 16-7). What does Panera Bread’s management have to do to keep it distinct? To maintain its individuality, Panera Bread must adhere to a commitment that has already been established in the fast casual sector. The firm avoids adopting methods used by most other rivals on purpose.

Furthermore, a company’s reputation and brand image are largely defined by its interactions with clients. As a result, rather than creating something unique to stay popular, a firm simply needs to treat clients in a different way, which will guarantee demand for its goods even if there are many other competitors. Panera Bread’s strategy of nurturing client loyalty is how it may be distinguished from other restaurants.

Finally, Panera may utilize customer loyalty programs to keep the regular customers and entice the new ones to return to the restaurants. This is a method for improving client experiences and piquing clients’ interest in forming two-sided connections with Panera Bread. The chain might begin providing personalized meal options, start a discount program, give incentives to particularly active customers, or create a mobile app.

Finding of fact #2

Panera is a well-known fast casual restaurant chain with a large following. However, despite its popularity, the company’s advertising campaign is rather cautious and passive. To attract a larger number of consumers, Panera Bread must increase its marketing efforts and promote its services and products more aggressively. What might be done to improve promotion for Panera Bread while also engaging more potential customers?

Panera Bread’s current advertising strategies include billboards and radio as the primary channels, with television advertisements and social media additions. Because Panera Bread’s target consumers are younger people living in cities who are engaged in business activities, the best way to advertise is through the internet. Panera could post attractive images of their menu items on popular social networks, enlist celebrities for mobile campaigns, and use its banners.

Furthermore, the billboards on the street should be utilized as previously, but it’s still better to redirect expenditures into radio and television marketing for social networking and mobile advertising efforts, which are becoming increasingly popular. Furthermore, giving away samples and food tasting sessions is another effective marketing approach that will attract new consumers and demonstrate the high quality of the goods offered by Panera Bread.

Finding of fact #3

The Panera Bread Company is proud of its pricing strategy, which proved to be a highly successful approach for the company to handle recession and stay popular and profitable. According to Snaich, the recession has been “the best of times” for Panera Bread since the business has resisted price cuts while others rushed toward them (Wheelen et al. 16-23). In order to appeal to higher-income consumers, who may be willing to pay a premium for certain ingredients, Starwood Foods introduced extra expensive components to their menu. Is this strategy a viable approach in a market where the number of rivals is increasing each year?

The fast food industry began to die down during the recession, when customers tired of fatty and processed fast food meals and started looking for more sustainable options. The contemporary society has very fickle tastes, therefore if a change in preferences occurs again and clients begin to buy less, Panera Bread is likely to lose more money than its rivals. Furthermore, the companies of Panera Bread’s rivals are aware of the firm’s advantages and may begin to take advantage of them. Starbucks, for example, may create a new menu line comparable to Panera Bread’s in order to divert consumers.

Then, just as you can’t sell your home during an economic recession if the housing market falls, Panera won’t be able to charge higher prices for its goods just because no one else serves them. As a result of this, the firm will only be able to charge higher rates while it continues to provide meals that no other business does. To continue justifying its greater costs and reputation as a unique location offering the most various and exceptional experiences to clients, the company is suggested to pursue more exotic and gourmet additions to the menu.

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