TyroCity

Discussion on: Panera Bread Analysis Checking Competitive Power of Resource’s Four Test

Collapse
 
ncitujjwal profile image
ncitujjwal

Panera Bread is the one of the largest breaker company in USA. It was first founded by Ronald M. Shaich and he is Chairman of that breaker company since in 1987 to current. It is food and beverage industry and it has 2100 plus stores in USA and Canada and they are also planning to expand it all over the world. The main head office of the breaker shop is Sunset Hills Missouri. Mr. Blaine E. Hurst is CEO and President of company. The major product of the company is Sells soups, breaker items, paste, salad etc. From 2016 annual report, the annual revenue was $2.8 billion and the total asset is $1.6 billion and the total number of staff was 50000. Panera Bread company is the sister organization of JAB holding company (Company Overview of Panera Bread Company, 2018). It is one of the growing and branded bread shop in the world.

The following are the 4 tests of the competitive power of Panera Bread Company. (Competitive Power Test (VRIN)):

Valuable: The Company has a strong food policy and they are one of top bakery shop in world. It is a big bakery brand and its market value is high. They manufacture different bakery product like soups, breaker items, paste, salad etc. most raw materials are developed from company self. They use clean ingredients to make their product so that the trust of customer is very high and they capture the large market due to their quality product. The main strategy of the company is they provide high quality food for their customer at low cost so that they have large market segment. So, this company passes the valuable test.

Rare: As I already told that they self-developed bakery raw material so that they can serve quality food product to their customer at a low cost. They have strong and unique food and breakery research and development team. So that they can manufacture variety of product by mixing those raw materials. So they severe rare and unique bread and soup items by mixing different raw materials. So, this company passes this test.

Imitable: The bakery industry in USA is very competitive job. So they should have strong market policies for existing the market because there are others big competitors like Starbuks, and Chipotle Mexican Grill. They are popular and big brand in USA so for competing with these, the company has big show room in high - center shopping center, they already tie-up with other Mart and showroom like Walmart and others. They use healthy food ingredients and quality raw material so that customer have high trust among the company. Its customer relationship strategy is also very good.

Non-substitutable: By using clean ingredients and high quality raw materials, it is one of the best and branded bakery items so that others brands have difficult to replace this brand. The resources used by this company are not substitutable because of their need for organic natural dough, which is needed to keep quality on their products (Kukuljan, 2017).

References

Company Overview of Panera Bread Company . (2018). Retrieved from Bloomberg: bloomberg.com/research/stocks/priv... 3

Competitive Power Test (VRIN) . (n.d.). Retrieved from the website too: websitetoon.com/resources/strategy... 3

Kukuljan, S. (2017). Reporter of Panera Bread Industry. St. Louis Business Journal .