Case Study in APA format on Panera

Summarize Case Study and Answer this question:

What strategic issues and problems does Panera Bread management need to address?

Write a one-page paper summarizing your answer. Write in third person and use APA formatting which requires 1 inch margins, double-spaced text in 12 pt.

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Panera Bread Company is a reputable American brand that offers a wide array of pastries and baked goods such as bagels, cookies, and artisan bread. The company ranks among the top national dining chains, and it provides customers with quality food in a sophisticated ambience. The company’s major business strategies include Panera 2.0, Panera at Home, and order delivery. Panera’s management’s long-term objectives and strategic goals involve achieving national recognition and becoming the dominant restaurant operator in upscale, quick-service dining.

According to Panera case study, unit location strategy, effective operating systems, inviting ambience, distinctive menu, and signature cafe design have greatly contributed to the establishment of Panera’s significant competitive edge during the last decade (Thompson, 2016). The main competitors of Panera, who vary based on the menu items they offer and the time they operate, include Starbucks, McDonald’s, Applebee’s, and Subway. Starbucks is Panera Bread’s major competitor.

Panera Bread’s management faces several strategic issues and challenges it needs to address. The challenges include ineffective strategic positioning and lack of innovation. The company requires to define a clear-cut strategy emphasizing on Panera Bread’s distinctive competence (Nash, 2015). Panera focuses on a broad differentiation, which is ineffective for the company’s goal. Panera’s weaker brand presence in comparison to the strong brand image of Starbucks undermines Panera’s revenue growth.

Panera Bread needs to enhance its brand reputation nationwide by capitalizing on corporate social responsibility to attain significant profitability. Further, the company lacks international presence because its presence is limited to the U.S. and Canadian markets, which limits its customer base and revenue expansion (Jones, 2015). Therefore, Panera requires to broaden its market penetration globally to attain significant market reach and profitability.

Panera Bread encountered significant challenges in the process of pioneering and navigating the fast-casual restaurant business. The dynamic and extremely competitive restaurant industry requires players to adopt differentiation strategies in relation to pricing, food quality, signature menu selections, dining ambience, convenience, and location. If Panera Bread takes into consideration the aforementioned factors, it will be able to attain an edge over rivals.

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