Panera Protegers 5 Causes

 Panera Protegers 5 Makes Essay

Porter's Five Forces

Competition Among Competing Sellers: HIGH/MODERATE

The competition among competitive sellers, usually the strongest competitive pressure, is also fairly high for Panera in the restaurant industry. Simply no switching costs, numerous rivals, and an increase in the availability of healthy food For any company inside the restaurant market, there are simply no switching costs for buyers. It is not just like, for instance, the cable market where cancelling fees are prevalent or an gadgets industry in which prices for any new product happen to be high. If perhaps one day, the consumer decides that she or he would like to go to Sweet Green for lunch time instead of Panera, the only moving over cost would be the price difference between the two meals (which may be minimal or advantageous for the consumer). This will make competition more important. Something that Panera must be mindful of is definitely the potential for decreased differentiation between their products and competing brands. Currently they have a strong reputation of providing superior quality, healthy, and preservative-free meals choices. Demand for this type of foodstuff is growing speedily. As we look to the future it may become much less of a power for Panera and more of the industry regular. With increased require, more eating places will be willing to offer this sort of product. Already we see a change occurring, relating to research done by the Organic Restaurant Sector in 2010-2011 which indicated that more than half of most restaurants are offering locally found produce. Related, is the fact that we now have an incredibly large numbers of competitors in the restaurant industry in general, whether or not they offer organic/healthy options or perhaps not. Eating places that offer Oriental, Mexican, American, Italian, and so forth must all be considered. There exists an incredibly high number of rivalling restaurants intended for consumers to select from. The number of bistro establishments in the US is 970, 000. A few couple factors that work in Panera's prefer....