Case Study – Chipotle Mexican Grill in 2013 –
Can it be a second home run?
Strategic Management
BUS 480
Christine Giampa
July 16, 2018
Core competency means the qualities and strength of any company that helps it to be ahead of its competitors. Chipotle Mexican Grill also has some core competencies like their target customers being the people who not only like Mexican fast food but are also health conscious at the same time. The company ensures the loyalty of such customers offering them their favorite fast food which is organic too. They use naturally raised meat and other organic ingredients in cooking. To complement the organic food in their menu they also present a complete environment friendly perspective by having green architecture and use of environment friendly material in the construction of their restaurant. Another feature that adds to its competency is the value for the money that it provides to the customers. Chipotle makes the experience of sophisticated fast food dining possible at low and affordable rates making it reachable to more customers.
A SWOT analysis showing Chipotle Mexican Grill’s strengths, weaknesses, opportunities and strength depicts that presently the company has a strong and positive image in its established markets which is mainly in the U.S., U.K and Canada. It is a well-known brand that edge above its competitors because of its unique quality of offering organic fast food in an environment friendly set up that makes it attractive to the customers is the use of organic ingredients and naturally raised animal meat for the food. It targets that group who is health conscious, environment friendly and loves Mexican fast food. The brand also has a bright future in the untapped regions and with ample scope of introducing new food items in it menu. It can also benefit by being the pioneer of promoting health friendly fast food. With the growing consciousness among people regarding their health, the brand can benefit by providing healthy and yet tasty fast food at an affordable price. However, with prospective growth in new states comes the profitability of high competition with many other ma/or brands in fast food category that may enter the segment of healthy fast food to benefit from the rising trend. ; with limited menu items and ingredients that have price volatility it may not be a smooth establishment in new states and countries.
The primary component of Chipotle’s value chain is the quality of the food. From the raising of the animals, to the storage and preparation of the food, Chipotle has taken great time and detail to assure healthy and organic products. This sets them apart and ahead from many other restaurants. The second component of Chipotle’s value chain is the presentation and speed of service. The presentation of the Chipotle atmosphere and food play a huge role. The customers usually spend less than ten minutes in line due to speedy and quality customer service.
