Question

Panera Bread operates more than 1,900 bakery-cafés in more than 45 states and Canada. How many of the four tests of the competitive power of a resource does the store network pass? Using your general knowledge of this industry, perform a SWOT analysis. Explain your answers.

Answer 1

Panera Bread Passes three out of the four tests, Below is the justification for the answer.

• Whether the resources and capabilities are competitively valuable?
  • The quality of ingredients and food offered by Panera Bread is of excellent quality, and they provide it at the most competitive prices in the market.
  • They offer fresh, healthy and deliciously sumptuous food.
• Whether the resource offered is rare?
  • Panera Bread is famous for making artisan bread, which is distinct among its competitors.
  • Very less waiting time, which is a distinctive attribute, as compared to its competitors.
• Whether the resources can be imitated by competitors?
  • Strategic establishment of its outlets or store locations and its positioning is quite difficult for the competitors to copy.
  • The brand value created by Panera bread is very high, which is difficult for its competitors to match.
• Whether the resources are non-substitutable
  • Panera provides free Wi-Fi, highly comfortable ambience at the outlet which can be replaced by the competitors facilities.

SWOT Analysis of Panera Bread:

Strengths:

• 87% customer retention
• High Customer satisfaction level.
• Strong Market Capitalisation.
• Market Reputation
• Quick reliable and fast service.

Weaknesses:

• Slow to change
• Takes long to launch a new product (2years)

Opportunities:

• Panera can open market in the Pacific
• Can explore new market opportunities by going for mobile app.

Threats:

• Global Economic Crisis:
• Customer Orders are falling at the rate of 24% annually
• Slow delivery due to customs.
• Average International Delivery time 94 days.