The Panera Bread came into in 1981 as Au Bon Pain Co., Inc., before prospering along the east coast of the U.S. and eventually establishing it as a global brand. This company now has 1,946 baker-cafes in 46 states (Panera Bread, 2016). This study tracks its prospects through Porter’s (2008) Five Forces Model.
Five Forces systematically analyzes the current standpoint of an organization within the context of industry competition and accordingly it evaluates a company within a matrix comprising five factors such as Competitive Rivalry, Threat of New Entrants, Bargaining Power of Buyers, Bargaining Power of Suppliers, and Threat of Substitute Products. This study now uses this model to put up the findings regarding the bakery industry and Panera’s current standing in it:
Figure 1: Panera within Porter’s Five Forces
[Adapted from: Porter (2008), Wilson (2012)]
Panera’s brand strength, position in the industry, and its USPs such as restaurant ambience and distinctive nature of products can be considered as sustainable competitive advantage. However, it needs to maintain the same with constant research and innovation regarding its product range and service options.
Glen, W. (2010). Fast food facts. Retrieved February 2, 2016, from http://www.vivavegie.org/101book/text/nolink/social/supersizeme.htm
Panera Bread. (2016). Our history. Retrieved February 2, 2016, from https://www.panerabread.com/en-us/company/about-panera/our-history.html
Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, January, 78- 93.
Wilson, J.M. (2012). Panera bread. Retrieved February 2, 2016, from http://www.jackmwilson.net/SNV/Case--PaneraBread.pdf