Question One
Panera Bread's strategy is a focused market differentiation strategy that provides meals to consumers to a particular target group. The target group of the company comprises of suburban dwellers and workers. The market objective of Panera is to satisfy the needs and tastes of the consumers by offering its signature soups and sandwiches that rival those provided by other companies. The competitive advantage of Panera is to offer high-quality products that match those of the other players in the market. When dealing with food products, quality is a critical aspect and the company that provides better quality can not only survive in the market but also can increase sales volume and consequently enhances the profitability of the firm (Keller, 2012).
Question Two
SWOT analysis is a model used to assess accompanies internal environment for strength and weaknesses and the external environment for opportunities and threats.
Strengths
High levels of corporate responsibility
Superior growth
Brand recognition
Product differentiation
Weaknesses
Low flexibility in case of an organizational or market shock
High costs of operation
Opportunities
Recovering market hence increasing income levels
Popularity of organic products
Threats
Large and strong competitors
Rise of gluten sensitive consumers
Panera can take advantage of the market recognition and their ability to produce quality products. By leveraging the strengths and exploiting the opportunities will become even more attractive to the investors and the consumers. By adopting a flexible market approach, the company can be able to update its menu to in an effort to remain relevant in the rising organic markets. Increasing income levels present an opportunity for the firm to expand its operations and attract potentially new consumers who have more disposable income (Kotler & Armstrong, 2013).
Question Three
These ratios indicate a growth of sales and revenues over the years which is a sign of good corporate governance and efficient operations. The profitability and activity ratios suggest that the strategies employed by the company are working both in the short and long term.
Question Four
Panera operates in a very competitive business environment with some of the competitors being large multinationals. Starbucks is one of the main competitors primarily because it has worldwide operations and is highly reputable among the consumers. Starbuck's presence in hundreds of locations around the world means that it can access more customers and therefore generate even more revenue than Panera which can then be used for even further expansion in abroad markets (Kotler & Armstrong, 2013). Some of the products offered by Starbucks are very close substitutes of those provided by Panera. This means that the latter could easily lose market share to the former increases in the price level.
Question Five
Since the industry is marred with stiff competition product differentiation and consumers targeting are the main strategic issues that the company needs to consider. The marketers of the organization can also consider engaging in relationship marketing initiatives with the aim of attracting new consumers and retaining the current ones. Loyalty programs could bring about a significant competitive advantage to Panera. The programs can positively change the perceptions of the consumers and improve the brand image of the company (Keller, 2012).
Since incomes of the consumers are increasing, this presents an opportunity for Panera to expand its operations. Expected future growth will require additional human resources to handle the activities at the firm. Therefore, appropriate human resource policies and procedures need to be put in place. They will ensure that the business attracts and employs the desired talent.
Other factors to consider as part of the strategic plans of the organization include reducing the customers' waiting time for meals, using attractive interior design and decorations and offering, even more, variety on the menu. These marketing activities have a direct effect on the brand image, professional appearance and the perception of the target market (Keller, 2012).
Question Six
There are various strategies the enterprise can use to enhance its business prospects and competitive position. The strong financial performance means that Panera can allocate some of the resources for an aggressive expansion into emerging markets in the Asia and Africa. Also, the company's low debt and increasing incomes mean that an expansion strategy could work efficiently for the firm without assuming huge risks.
Another strategic initiative would be developing the delivery segment of the business. The company is known for its quality catering services and food products which could be an advantage when it comes to expanding the distribution segment of the firm (Kotler & Armstrong, 2013). This will provide additional utility to the consumers most of whom prefer ordering food from the comfort of their home. Online ordering could provide the much needed additional value to the customers. A delivery system will enhance the efficiency of operations and provide an additional reason to the consumers for them to remain loyal.
References
Keller, L. (2012). Strategic brand management: building, measuring, and managing brand equity. New Jersey: Prentice Hall.
Kotler, P. & Armstrong, G. (2013). Principles of marketing. Upper Saddle River, NJ: Prentice Hall.
