Nature of Competition
Firstly, the nature of the competition has to be described to determine the overall construction of the market and industry. The restaurant business is highly competitive due to the strength of the existing firms and a variety of the services’ coverage (Williams 128). The presence of this matter can be determined by the loyalty of the customer’s to the particular brand due to its well-established recognition and assurance of the quality (Williams 128). In this case, it could be said that the entry barriers to entry remain low, but the company’s growth and survival are dependent on its level of flexibility.
Key Success Factors for Competitive Success
As for the determiners of success, one of them is the continuous necessity of evaluation of trends in the hospitality industry. For instance, the current trend is related to the growing popularity of healthy eating (Anderson 131). Consequently, it has to be depicted as a core element of the strategy to assure profitability. Another matter is continuous attention to the establishment of sophisticated marketing campaigns to portray the novelty of the place. This aspect will contribute to the growth of the market share and the ability of the company to attract new customer segments to its locations.
Competitors
The primary rivals of Panera restaurants are MacDonald’s and Darden Restaurants. In this case, the critical strength of both competitors is the high brand recognition, as McDonald’s is a multinational company with its distinctive restaurants in an extended number of countries (Kasperkevic par. 7). In turn, Darden restaurants have a well-develop customer base across the United States of America while increasing brand image by acquiring recognized brands (Darden Restaurants, Inc. par. 1). Nonetheless, the primary weakness of McDonald’s is decreasing consumers’ preference for fast food and the subsequent decline in sales (Kasperkevic par. 4). Nonetheless, the principal drawback of Darden restaurants is a high diversification of the focus (Darden Restaurants, Inc. par. 1).
As for the moves, it is apparent that the companies tend to adopt their strategies to the constantly changing environment. For instance, McDonald’s has introduced new components of the menu, which have a tendency corresponding with the growing consumer’s interests to healthy eating (Lutz par. 1). In turn, Darden Restaurants enhanced its international presence while introducing the franchise scheme globally (“Darden Restaurants: International Franchising” par. 1). It remains apparent that the rapid development is the necessity in this sphere, as, otherwise, the restaurant chains will lose their market share to the competitors with the innovational productions and affordable prices.
As for the competitive actions, it could be said that McDonald’s healthy campaign can be regarded as one of them, as the company modified its strategy to attract the individuals who consider healthy eating habits of high importance (Lutz par. 1). In turn, the presented above introduction of the franchise by Darden Restaurants and continuous expansion of its facilities has a beneficial influence on the company’s performance. In the end, it remains apparent that the flexibility of the competition cannot be underestimated, as it contributes to the development of sufficient entry barriers.
Conclusion
It could be said that it was revealed that the competitiveness analysis is critical for the understanding of the current trends and the company’s position in the market. In this case, Panera restaurant has to understand the strength of its competitors, as they tend to occupy a significant share of the market and have high recognition worldwide. Nonetheless, the organization can utilize the weaknesses of the rivals as a benefit for the development of its competitive advantage. In turn, the company has to be able to adapt to the constantly changing environment while adjusting its services and products to the consumers’ preferences.
Works Cited
Anderson, Erick. Everyone Eats: Understanding Food and Culture, New York: New York University Press, 2014. Print.
“Darden Restaurants, Inc.: Darden Restaurants Completes Acquisition of Yard House USA, Inc. ” Mergers & Acquisitions Week. 2012. Web.
Darden Restaurants: International Franchising. 2016. Web.
Kasperkevic, Jana. “Still Not Lovin’ It: McDonald’s Sales in US Drop for Seventh Quarter.” The Guardian. 2015. Web.
Lutz, Ashley. “McDonald’s has stopped trying to convince people its food is healthy.” Business Insider. 2015. Web.
Williams, Chuck. MGMT: Principles of Management, Boston: Cengage Learning, 2016. Print.