Panera Bread is a chain of stores serving bakery items and a casual restaurant in the United States and Canada. Its typical location are the suburban strip malls and target customers are the bread loving trendsetters and traditionalists. With lunch and afternoon as the busiest times and providing order or pick up at the counter its competitive edge would be the fresh dough prepared every day. (Barancik, 2002)
Competitive value of the resources or capability
Competitive value is something that the company has those others do not. This is something that stands out. For Panera Breads its service and product was something that was unique which that catered to the unseen segment of fast food and fine dining. For over 15 years they were the early bird in the segment (Dow Jones, 2015). They have introduced an online order where customers place order and do not have to stand in long lines. They differentiate themselves from others with their ambience which boasts of freshness and an oasis away from the everyday rush of life. The customers are greeted by name and big loafs of bread proudly showing the time it was taken out of the oven.
Capability to copy and imitate
Eatery chain such as Panera Bread may have competitive advantage, and rarity in its product but it is nothing that others cannot copy or imitate. This segment was enjoyed by Panera Breads for almost 15 years before other competitors entered the market.
Rarity of the resource or capability
Panera Breads excels and is strict about fresh and health eating. They are critical in purchasing antibiotic free chicken and also bake their breads on location and whole grain breads. They value their employees and offer them 50% to 75% up to 10$ meal in any of their shops. "A Panera Bread baker wrote in a 2015 Reddit AMA that they were able to “take home ten dollars-worth of food every time I work” at their restaurant.Imitability or able to copy resources or capability (Cain, 2018).”
Substitution Aspect
For Panera Breads substitution comes in the form of Starbucks and Atlanta Breads to name a few. Any eatery that caters to the health meal between fast food and fine dining and provides its services at the lunch and high noon hours can be substitution for what Panera Bread has to offer.
In these ways Panera Bread stands performing strong each year. Their main focus should be both customer relation and product quality that is going great for the company. There however was a leak in their website where millions of customer’s personal data was leaked which was something the company should have managed better as their customer loyalty is very high and this is their competitive advantage over their rivals.
References
Barancik, S. (2002, October 2). DOING IT FOR THE DOUGH:. St. Petersburg Times; St. Petersburg, Fla.
Cain, A. (2018, August 4). 7 insider facts about Panera Bread that employees know and most customers don’t. Business Insider .
Dow Jones. (2015, February 21). CEO Spotlight: “Flour On His Shoes” – Barron’s. Dow Jones Institutional News; New York .
For further actions, you may consider blocking this person and/or reporting abuse
We're a place where students share, stay up-to-date, learn and grow.
Panera Bread is a chain of stores serving bakery items and a casual restaurant in the United States and Canada. Its typical location are the suburban strip malls and target customers are the bread loving trendsetters and traditionalists. With lunch and afternoon as the busiest times and providing order or pick up at the counter its competitive edge would be the fresh dough prepared every day. (Barancik, 2002)
Competitive value of the resources or capability
Competitive value is something that the company has those others do not. This is something that stands out. For Panera Breads its service and product was something that was unique which that catered to the unseen segment of fast food and fine dining. For over 15 years they were the early bird in the segment (Dow Jones, 2015). They have introduced an online order where customers place order and do not have to stand in long lines. They differentiate themselves from others with their ambience which boasts of freshness and an oasis away from the everyday rush of life. The customers are greeted by name and big loafs of bread proudly showing the time it was taken out of the oven.
Capability to copy and imitate
Eatery chain such as Panera Bread may have competitive advantage, and rarity in its product but it is nothing that others cannot copy or imitate. This segment was enjoyed by Panera Breads for almost 15 years before other competitors entered the market.
Rarity of the resource or capability
Panera Breads excels and is strict about fresh and health eating. They are critical in purchasing antibiotic free chicken and also bake their breads on location and whole grain breads. They value their employees and offer them 50% to 75% up to 10$ meal in any of their shops. "A Panera Bread baker wrote in a 2015 Reddit AMA that they were able to “take home ten dollars-worth of food every time I work” at their restaurant.Imitability or able to copy resources or capability (Cain, 2018).”
Substitution Aspect
For Panera Breads substitution comes in the form of Starbucks and Atlanta Breads to name a few. Any eatery that caters to the health meal between fast food and fine dining and provides its services at the lunch and high noon hours can be substitution for what Panera Bread has to offer.
In these ways Panera Bread stands performing strong each year. Their main focus should be both customer relation and product quality that is going great for the company. There however was a leak in their website where millions of customer’s personal data was leaked which was something the company should have managed better as their customer loyalty is very high and this is their competitive advantage over their rivals.
References
Barancik, S. (2002, October 2). DOING IT FOR THE DOUGH:. St. Petersburg Times; St. Petersburg, Fla.
Cain, A. (2018, August 4). 7 insider facts about Panera Bread that employees know and most customers don’t. Business Insider .
Dow Jones. (2015, February 21). CEO Spotlight: “Flour On His Shoes” – Barron’s. Dow Jones Institutional News; New York .