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Chipolte Case Study

956 words - 4 pages

1. Here is a list of Chipotle Mexico Grill core competencies:
o High quality products with the best raw materials
o (naturally raised beef, pork and chicken)
o Healthy ingredients
o Good, clean and friendly environment
o Provide customers with a fast-casual dining experience at an affordable price
o Fast-service
o Serve alcohol

2. The SWOT analysis reveals that Chipotle will be very attractive in the future. They do many things well that will continue to create a profit and benefit the company. Here is the SWOT analysis for Chipotle:
Strengths:
• A well-recognized brand in U.S., U.K., Canada.
• An employee strength of around 30,940
• Use of naturally raised meat and ...view middle of the document...

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Secondary components of Chipotle’s chain:
Operations
• This stage doesn't add that much value to the product compared to their competitors
• A lot of competitors use a similar type assembly line to make their products
o They are considered a fast-casual restaurant rather than traditional fast food so they are not known for their speediness
Distribution:
• Chipotle's distribution is inexistent
o They do not deliver their products.

Sales and Marketing
• Chipotle spends 1% of their total revenues on ads compared to their larger rivals that spend 4% or more. They spend less in a year than MCD in 48 hours. They need to increase their market campaigns in order to compete with their larger competitors.
• Advertise with Billboards and radio ads
• Take advantage of word of mouths campaigns
• Give-a-ways
• They sponsor teams

4. The chief components of Chipotle's strategy are to increase total revenues, and higher acceptance rate in European countries. They use the strategy diamond to describe them. Their arenas would be all cities with possibilities of home grown food. They are a publicly traded company. They have a small food selection, organic foods and fast but upscale dining. They are strict on their portions.

5. Porter’s 5 Forces

Competitive rivalry: Strong: Moe’s Southwest Grill and Qdoba Mexican Grill are both widely known and similar fast casual dining establishments .They create a threat to Chipotle because they serve the same kind of products

Substitute Products: Medium- Strong: There are a lot substitute product, Chipotle uses homegrown product which could make it harder to find a substitute.

Entry of New Competitors: low. It Hard to successfully enter the industry, it has a very high failure rate. Very difficult to compete with such big companies.

Bargaining Power of Suppliers: medium: The ingredients that they use for their products are not low in supply (chicken, pork). However since...

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