GROUP 3

Sri Hamzani Rezki 205040100111063

Cyintia Angelina Miracle Purba 205040100111176
Mohammad Ezykel Pasha 205040107111009
Josephine Nevauli Karunia 205040107111039

CASE 5.1 Panera Bread: Occupying a Favorable

Position in a Highly Competitive Industry
Question:
1. How has Panera Bread established a unique position in the restaurant industry?
2. How has Panera Bread’s unique position in the restaurant industry contributed to the firm’s
success?
3. What barriers to entry has Panera Bread created for potential competitors? What are Panera
Bread’s primary sources of competitive advantage?
4. 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?
Discussion:
1. Ezykel : Panera Bread has established a unique position in the restaurant industry by
developing many things. First is the food quality and services because all their customers
always wanted good quality product and services, next Panera Bread is exploring opening
in nontraditional locations and also exploring food delivery.
Josephine : Panera Bread managed to set themselves apart from other restaurants at the
time by creating a menu that felt more elevated but didn’t require a long time to produce.
So the consumers didn’t have to wait long for their food.
Sri : Panera Bread can establish their unique position in the restaurant industry because
they lead in “fast casual” market position for food so besides their fast food they also offer
good food and warm food for the customer. They also have a friendly environment and
always innovate.
 Cyntia : I think Panera Bread way to create a unique position is positioning and execution.
Panera Bread observes that people are looking for "special" products which are different
from ordinary restaurants. Second, Panera Bread concludes that consumers want higher
quality food. In other words, consumers want food that is served quickly in a pleasant
environment.
2. Josephine : Their success is thanks to the company’s innovative additions to the restaurant.
Whether it’s the specialty menu, catering service, integrating technology to the restaurants,
and such.
Cyntia : Panera Bread's contribution to the company's success is that they fall into the fast-
casual category of leadership and excellent financial performance. The company employs
more than 47,000 people, serves 8.3 million customers per week, and is currently one of
the largest restaurant chains in the United States of America. It also continues to innovate
and develop.
Ezykel : Panera Bread has contributed many positions in the fast food industry, for
example is the introduced new menu which is premium taste. Also since 2016, Panera
Bread has gotten rid of artificial and synthetic ingredients which made the food healthier.
Panera Bread has gone to Panera 2.0 which now customers do not have to order and pay
by going to the counter. The orders are placed on iPads and smartphone apps.
Sri : Panera Bread’s unique position contributes the largest to their firm’s success. It suits
customer taste and also has high demand in the market besides that they are always so
innovative so it all helps the company’s success.
3. Josephine : One of the barriers is product differentiation. Panera Bread has created a menu
full of unique stuff, including specialties items. New companies might have a hard time to
overcome this because the targeted consumers would expect those new companies to be
able to create and innovate new food products.
Sri : The barriers to entry that Panera Bread’s created for their potential competition is the
product which Panera Bread is known for their bread and their services. Panera Bread also
has other features when they use technology and Panera Bread deliveries. Besides that,
Panera Bread can lead in the restaurant market by observing trends and listening to
customers so it's hard to enter the same market as Panera Bread.
 Ezykel : Economy of scale, Panera Bread has more than 1,700 restaurants all over the
world. The company has more than 47,000 employees and they serve 8,3 million customers
per year. Panera bread is currently one of the largest restaurant chains in the USA.
Cyntia : Panera Bread has a growing competitor where the fast-casual category is now
included in several restaurants such as Chipotle Mexican Grill, Panda Express. Therefore,
in 2015 Panera Bread understood the mission of the products they sell. Panera Bread is
also introducing a useful new menu to help the company build a premium reputation.
Goods, which have become very popular, include Panera's Roasted, Turkey Sandwich,
Apple and Cheddar, Arugula and Chicken Salad. As part of increasing competition
4. Ezykel : Panera Bread’s primary source of competitive advantage is their position in the
restaurant industry. Panera Bread is one of the largest restaurant chains in the USA with
47,000 employees and serves more than 8,7 million customers every week. Also another
position is their brand strength.
Josephine : Panera Bread’s primary sources of competitive advantage are its brand
strength, the unique and distinctive products that they have introduced to market, and their
loyal consumer base.
Cyntia : In my opinion the primary source of competitive advantage is fast casual and fast
food, where Panera Bread is very superior starting from its very fast preparation, very
comfortable restaurant and their environment, very good service provided by the waiters
at Panera Bread and for sure the taste given from Panera Bread to consumers
Sri : Their primary source of competitive advantages is good and fast services of food with
higher quality food and an enjoyable environment.
5. Josephine : In my opinion, Panera Bread should create a competitor profile which lists off
certain elements that the competitor has. From that profile, Panera Bread can reflect on
themselves to see how they can improve their company. Another thing that they could do
is by conducting surveys with their customers to assess why the consumers prefer the
competitor rather than Panera Bread itself, or the other way around.
Cyntia : In my opinion, they must observe and record what is done by the potential
competitors and must also observe what consumers want and what can attract requests from
consumers. So that Panera Bread can remain competitive and superior to the fast-casual
category.
Sri : Offer more benefits to their loyal customers. Observe what the potential competitive
offer to their customer and evaluate its so that panera can bring do more innovative move
to compete in the market
Ezykel : In my opinion, Panera Bread should talk to customers about what motivated them
to dine at Panera Bread opposed to the competitor, and study about their competitors'
product, marketing and branding. Last one is to attend conferences that talk about the food
industry.