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1Panera Bread uses the differentiation method. This can be evidenced by the way they
differentiate themselves in the market. The generic competitive strategy that Panera Bread
approaches is broad differentiation strategy. They serve high quality food compared to other
restaurants with the same concept. Their fresh bakery that is made daily gives Panera the led
in the market. If we compare Starbucks’s bakery and fresh goods, Panera without doubt wins.
On the other hand, Panera is trying to achieve cost leader strategy. Comparing again
Starbucks’s espresso prices with Panera’s prices, Panera’s are much higher even though
Starbucks’s prices are not the cheaper in the market. If Panera could uses this strategy, they
prevail in the market due to the fast-casual restaurant style and the high quality they provide.
2-
Personally, before reading the case, I was thinking that Starbucks is the closest competitor
to Panera bread; however, it seems that Cracker Barrel is the closest. The two menus are close
plus the casual atmosphere in both restaurants. Cracker Barrel has been rated as the best
breakfast in the family dining category.
3-
As a Panera bread customer, I believe they should change the menu frequently, like
Starbucks for example. Add new dishes with every new season to prevent the boringness from
the repetitive menu. Also, lower the prices especially for the espresso section. Finally, focusing
in the late night menu as the breakfast menu to ensure the costumers who are looking for
fresh, high quality dinner.
4-
To strengthen its competitive position, Panera needs to boost their profit by expanding and
adding new segments to their data. One important strength of Panera bread is the new system
of online ordering and the easy picking up the meal from the shelves (arranged in alphabetical
order). Many restaurants have not implemented this system.
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