Strategic Issues
1) Competition – Chipotle’s biggest issue is dealing with its every growing competition. This industry, fast-casual, is receiving more foot traffic and becoming more profitable. This understanding of the market will lead to current and new-entrants trying to capture these opportunities for success. Chipotle also has a limited menu, which is great option to maintain quality control, but when other companies are offering a variety of new products, customers may switch to those places to try these innovative recipes.
2) Volatile of Ingredient Prices and Availability – Chipotle understands that people are becoming more concerned with the environment and their health. Thus, Chipotle has introduced organic products and ethically …show more content…
Chipotle has made an effort to educate consumers about these products by introducing programs such as the Scarecrow Marketing Program. However, this program was only offered to iPhone and iPad users. This fails to reach individuals with Android, Windows and other operating systems.
Respective Recommendations
1) Chipotle needs to continue to differentiate themselves from their competition. This may mean that they should seriously consider offering breakfast at their locations or expanding their product lineup. However, they must stay true to their values, such as offering moderately quick service, high quality and ethical products. This approach will help maintain or hopefully gain more market share.
2) If the health trend continuous to grow, more suppliers of organic, ethical products will emerge. Supplier power will tend to decline and Chipotle will be able to purchase these products at a lower price compared to the current listed prices. Chipotle should carry on being proactive when it comes to evaluating their supplier choices and the ever changing market conditions. This attention to the market will lead to greater profit margins as the cost of goods sold will
1) Competition – Chipotle’s biggest issue is dealing with its every growing competition. This industry, fast-casual, is receiving more foot traffic and becoming more profitable. This understanding of the market will lead to current and new-entrants trying to capture these opportunities for success. Chipotle also has a limited menu, which is great option to maintain quality control, but when other companies are offering a variety of new products, customers may switch to those places to try these innovative recipes.
2) Volatile of Ingredient Prices and Availability – Chipotle understands that people are becoming more concerned with the environment and their health. Thus, Chipotle has introduced organic products and ethically …show more content…
Chipotle has made an effort to educate consumers about these products by introducing programs such as the Scarecrow Marketing Program. However, this program was only offered to iPhone and iPad users. This fails to reach individuals with Android, Windows and other operating systems.
Respective Recommendations
1) Chipotle needs to continue to differentiate themselves from their competition. This may mean that they should seriously consider offering breakfast at their locations or expanding their product lineup. However, they must stay true to their values, such as offering moderately quick service, high quality and ethical products. This approach will help maintain or hopefully gain more market share.
2) If the health trend continuous to grow, more suppliers of organic, ethical products will emerge. Supplier power will tend to decline and Chipotle will be able to purchase these products at a lower price compared to the current listed prices. Chipotle should carry on being proactive when it comes to evaluating their supplier choices and the ever changing market conditions. This attention to the market will lead to greater profit margins as the cost of goods sold will