Chipotle Business Strategy Essay

The expanding global economy is offering companies, many attractive opportunities and the companies in food industries have a higher competitive threat and a desire to come up with a strategy to enter the foreign market and expand their business. Many companies expand into foreign markets to achieve an increase in competitiveness, capitalize the core competencies, gain access to new customers, access to the natural and labor resources, mitigate the risk spreading across larger markets, and a lower production costs (Thompson, Peteraf, Gamble and Strickland (2016). Chipotle is a successful food business in the U.S that provides high-quality food prepared using fresh local ingredients to their customers. There are many strategies available for competing in the global markets and Chipotle is using franchise strategy (SNHU, 2016) to expand its business in London, UK.
The expansion of Chipotle outside U.S is in the early stages with just a few locations started in London and many of the U.K customers may not have experienced dining in Chipotle food. There is a history of rejection of Mexican food in the U.K and companies always struggled. The Taco Bell unsuccessful …show more content…
As such, Chipotle's strategic move is a multi-country and one country market is independent of another country market, so extend the valuable competence efficiently to the U.K franchises offered by the Chipotle headquarters. Leverage the internet, mobile and social media for brand recognition. Chipotle can gain a competitive advantage in London by lowering operation and production cost, and develop a product differentiation by sharing various value chain activities and economies of scale. Discover new opportunity like promoting Chipotle items through grocery other partner store and penetrate the market promoting awareness of Chipotle