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Strategic Analysis

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Comprehensive Strategic Analysis
Panera Bread and the Fast Food Industry
Amy Mayhall, Nick Milberger, Ian Euler, Deleon Dallas

1. What are the dominant characteristics of the industry?
There are many characteristics in the fast-casual industry. These characteristics are all important for competing restaurants to consider when trying to gain competitive advantage. The characteristics that are most relevant to this industry are; market size and growth rate, number of rivals, scope of competitive rivalry, number of buyers, degree of product differentiation and vertical integration.
Market size and growth rate are rapidly increasing. Sales reached $23 billion in 2010, that is 30 percent higher than it was in 2006. Survey results in 2010 mentioned that the reason for many people not eating at a fast casual restaurant in the last month was because there was a lack of availability. This means that there are people searching for fast casual because of the healthier choices but there are not as many establishments as there are of fast-food choices. This gives the industry a lot of room to grow. (Sena, 2011)
In 2009 there were approximately 600 fast-casual establishments in the U.S. Rivalry for this market is strong. There are hundreds of fast casual establishments that offer quick and easy food. This makes rivalry high. There is always a threat of a company breaking into the market with a new idea that will steal consumers and revenue. This threat causes companies to try whatever it takes to have an advantage over their rivals. (Sena, 2011)
One of the main pulls of fast casual restaurants is the experience and ambiance of dining in one of their establishments. The experience that they put forward is closer to a sit down restaurant rather than a fast food establishment. They can be a perfect place to read, study or hold a casual meeting. This industry is usually

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