Chipotle Mexican Grill
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History, Development and Growth of Chipotle Mexican Grill
Chipotle Mexican Grill, founded in 1993 by Steve Ells was first set up in Denver, Colorado with a vision of changing how people think about and take fast food. McDonalds acquired the business in 2001 from the admiration of its strategies, but later in 2006 became independent after becoming a public company, since which its revenue and profit margin rose significantly. The company is committed to providing high quality food with integrity. It has developed to be a renowned food chain in the USA and other countries. The company idea of great and fast customer service, and use of natural and organic ingredients attract many. Its idea of having a new model, the ShopHouse is being implemented using same initial strategies.
Internal strengths and weaknesses
The company provides healthy, high quality low cost food to its customers at their convenience. The options the customers have and the serenity of its restaurants attracts more customers. The notion of high quality healthy food and its low price costing differentiate it from the rest of the competitors. In addition, its new establishments and projects such as the shophouse uses the initial original strategy that has seen the company grows. Its competent employees, departments and leadership ensure efficiency and effectiveness in the delivery. It’s becoming more customers oriented than focusing on its capabilities is a weakness.
Analysis of the external environment
The food chain faces stiff competition from equally established businesses such as the McDonalds, Taco and Panda restaurants. Food industry commonly faces volatility in price that may cripple its idea of low cost food crippling its operation. Its innovations and newer products with improved services can attract more customers raising its revenue. Investing in advertisement and the development of mobile app can make it outshine its competitors.
SWOT Analysis
The company commitment to high quality food builds its brand reputation among clients. High quality and taste assurance contributes to nutritional benefits of its customers, which may also improve preference. Its innovative culture and customer dependency speeds up its progress in terms of service improvement, establishment of new restaurants and improving on revenues.
The company is highly dependent on customer feedback than its capabilities. Its menu is comparatively high priced due to use of high quality and natural ingredients. It offers of more complex flavors and choices are not typical for fast food restaurants.
Its support for organic and natural food products offers it peculiar opportunity not exploited by competitors. Differentiation approach gives it competitive advantage for global expansion. Growing concerns on health and environment surges acceptance among consumers. Its innovativeness, new products and marketing structure is also finer method of raising revenue.
The company faces stiff rivalry from well-established direct competitors. The economic volatility and substitutes can negatively affect the revenues of the business. Volatility of prices of products and potential change in customer taste is yet another threat.
Corporate-Level Strategy
The mission of the company of changing the way people think and eat fast food and commitment to high quality tasty food is a good strategy for its establishment and growth. The employment structure and the leadership also provide opportunities for better service delivery, upholding quality and bringing efficiency in its operations.
Business-level strategy
The product differentiation, commitment to quality and faster service to customers fulfill its mission of changing how people think and eat fast food, boosting its revenues and acceptance.
Recommendations
The company need to undertake expansion opportunity in different places globally, and engaging in mobilization initiatives to add value to its notion of healthy food. It should identify a constant source of supplies that offer quality products at a cost that meet its low price offer. The company can also blend customers’ feedback with its capabilities in offering services to improve on its strengths and processes.
Actions for Successful Changes
This is similar to the recommendations and can be applied as appropriate.
Reference
Thompson, A., Strickland, A., & Gamble, J. (2014). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (19th ed.). New York, NY: McGraw Hill.