Pane Bread Company Case
Basing a Mayans strategy on Its most competitively valuable strengths gives the company its best chance for market success. The core competence of fresh bake items proficiently performed is the internal activity that is central to a their strategy and competitiveness. Their menu of fresh breads, salads, soups, sandwiches, and combination plates are very appealing to Americans since the culture has change their eating habits to healthier choices. Promoting their bread-baking expertise of artisan breads will distinguish them from the dozens of Dell/coffee shops that are competing In the restaurant Industry, and In their market segment.
Their bread expertise is their distinctive competence which means is a competitively valuable activity that a firm performs better that its rivals. Pane offers these healthier choices in their “fast casual” atmosphere giving the consumer the option to eat ‘n go or dine in their “third place” establishments. Pander’s establishments offer consumers alternative place, naming this theory the “third place” to relax, catch up with friends, do work/study by offering free wolf, and of course EAT Pane has achieved to acquire a good brand name and high consumer satisfaction ratings.
Their success with catering is another indicator that their products are preferred over competitors in the market.
Their franchisee program is unique with most of the initial money up front, therefore boosting financial strength and growing without much debt. Based on the article the franchisee owned stores reported higher sales than the company-owned stores. Weakness of Pane Bread Company Is highly concentrated geographically In North American. I consider this a weakness because when compared to other competitors such as McDonald’s or Cataracts, BBC lacks scale.
BBC will have to consider international operations if they want to grow financially.
Global expansion will enhance their competitive power that Is needed to broaden the company’s position to pursue emerging market opportunities. A company’s weaknesses are contractions Tanat constitute competitive liabilities. Opportunity for Pane Bread Company is with expansion of its menu and number of outlets in designated areas. The expansion of the menu to include vegan, vegetarian, organic, tofu and other healthier options will tap into the emerging market opportunities.
New recipes will keep returning consumers interested in the company. BBC should expand their outlet areas to colleges and other younger demographic areas, so they can capitalize on the “third place” idea to get consumers stay longer in their establishments to spend more money.
I believe these to be interests of an absolute “must pursue” market opportunities which will represent much potential but is hidden in the future. Threats of Pane Bread Company include competitors coming at all directions.
These can be considered normal course-of-business threats. BBC has to constantly evaluate what strategic actions can be taken to neutralize or lessen their impact of mediators in their market segment if they want to stay competitive. A simple shift in buyer needs and tastes away from the industry product can result is a substantial financial blows. BBC has to prove themselves in specialty food, quick service, and casual dining against competitors like Cataracts, Chipolata, Noodles and Company, and McDonald’s Just to name a few.
BBC has to keep finding ways to distinguish themselves against their competitors, because the market is so saturated with industry rivals. SOOT reveals about the overall attractiveness of its situation is the brand awareness ND customer loyalty that Pane has based upon their 9 million domestic users loyalty program It has been able to reinvent their menu with changing consumer likes and introducing new marketing information and incorporating the data to improve their profits.
Example is introducing evening meal options because they found that Pane customer only think of Pane for breakfast or lunch. Even though SOOT stresses to heavily place strategic plans on a company’s best competitive asset, Pane decide to . 2.
Which rival chains appear to be Pander’s closest rivals? In the article Exhibit 3 gives a detail list of industry rivals that competed against Pane Bread in some or many geographical locations. From the chart I reviewed the “Key Menu Items” to decide the closest rival chains.
Pander’s rivals include any fast casual dining place with fresh baked breads, soups, salads, and variety of hot and cold drinks. Some of those are Corner Bakery Cafe©, Burgers, Atlanta Bread Company, Au Bon Pain, Einstein Brows. Bagels, Season’s Deli, and Cataracts. I based this on high volume at breakfast or lunch to differentiate the market segment further.
The rival chains with international operations are the competitors that Pane needs to address in their strategy. Their weakness is lack of international operations and penetrating those market opportunities.
Cataracts, Au Bon Pain, Burgess’s are strong competitive forces. Pane will have to factor whether competitive forces seem likely to intensify and squeeze industry profitability to subpart levels or whether the company should be able to earn good profits despite the expected strength of competitive Tortes. I Delves Tanat Industry overcapacity Is a messmates Issue Tort Pane o go internationally will bring in more profits in global areas that are not over compensated with fast casual dining.
3. What strategic issues and problems does Pander’s management need to address?
Pander’s management needs to address the restaurant business is always going to be elaborateness’s, extremely competitive, and risky. BBC management should evaluate and pursue differentiation strategies to set themselves apart from rivals via pricing, food quality, menu theme, signature selections, dining ambiance and atmosphere, service, convenience, and locations. While being aware of changing anemographic, likes, trends, culture to pursue strategic differentiation course of actions. In the article, I was surprised that in the early years, marketing only play a minor role is the success of the company.
Their targeted market segment was urban socialites, suburban upper middle class families, and the trendy “food” conscious people who have access to commercials via internet, cable, and smartened APS. So why not utilize marketing? Their band awareness is built on customer satisfaction with their dining experience and word of mouth by these happy patrons. My inclusion is that Pane establish their value chain very early in the development of the company. Value chain identifies the primary internal activities that create and deliver customer value and the requisite related support activities.