Question 1
Chipotle operates in the food industry, but more specifically, it is part of the ‘fast-casual’ restaurant industry, a segment of the food industry said to be founded by Chipotle. The ‘fast-casual’ restaurant segment is said to be the fastest growing segment of the restaurant industry. It is a niche market between fast food and casual dining.
The ‘fast-casual’ segment of the restaurant industry can be argued to be an attractive industry segment. This is evident in the fact that Chipotle faces many fierce competitors continuously, namely Chipotle, Qdoba Mexican Grill and Pei Wei. Another indicator of its attractiveness is the annual sales that Chipotle and its competitors make, from $310 Million to $1.836 Billion. The revenue that …show more content…
To stay competitively advantageous, it needs to make some changes, which will be discussed in the S.W.O.T. Analysis on the following pages, and the following answers in Question 5 and 6.
S.W.O.T. Analysis
A S.W.O.T. Analysis is a great way to analyse an organisation’s strengths, weaknesses, opportunities and threats. It is a truly reflective analysis model, as it addresses both the positive and negative traits, as well as opportunities to grow whilst acknowledging potential threats (obstacles) it would have to overcome to achieve respective goals. The following two tables will show the S.W.O.T. Analysis of Chipotle.
Table 6: Table to show the Strengths and Weaknesses of the S.W.O.T. Analysis of Chipotle
Strengths Weaknesses
- Large number of loyal customers
- Positive word-of-mouth (online and offline) for brand awareness and marketing
- Large Facebook following (1.3 Billion likes) compared to its competitors: Panera Bread (513,000), Pei Wei (102,000), Qdoba Mexican Grill (92,000)
- Participates in charity fundraisers for brand …show more content…
There is opportunity to reconsider and/or redesign communication funnel for efficiency purposes.
- Reduction in SSS growth – opportunity to reconsider marketing technique and/or expenses
- Expanding too fast – opportunity to reconsider growth strategy
- Expanding overseas – opportunity to study new markets and possible take market shares overseas - Expanding overseas, information systems there may not be compatible
- Locals may not be accustomed to product/service concept
- Different economy, different culture, different environment, thus, may not fit in or thrive
- Strong competition may already be dominating the country of interest
- Current communication method via one corporate office will result in communication (and language barriers) issues with stores overseas
- Language and cultural barriers
- Cost to expand or establish new stores overseas can be costly depending on where the target areas are
- Economy may not be sustainable for this sort of business
- Food industry is very competitive, staying at the same price may result in the reduction in sales
- Rival chains also looking to expand domestically and
Chipotle operates in the food industry, but more specifically, it is part of the ‘fast-casual’ restaurant industry, a segment of the food industry said to be founded by Chipotle. The ‘fast-casual’ restaurant segment is said to be the fastest growing segment of the restaurant industry. It is a niche market between fast food and casual dining.
The ‘fast-casual’ segment of the restaurant industry can be argued to be an attractive industry segment. This is evident in the fact that Chipotle faces many fierce competitors continuously, namely Chipotle, Qdoba Mexican Grill and Pei Wei. Another indicator of its attractiveness is the annual sales that Chipotle and its competitors make, from $310 Million to $1.836 Billion. The revenue that …show more content…
To stay competitively advantageous, it needs to make some changes, which will be discussed in the S.W.O.T. Analysis on the following pages, and the following answers in Question 5 and 6.
S.W.O.T. Analysis
A S.W.O.T. Analysis is a great way to analyse an organisation’s strengths, weaknesses, opportunities and threats. It is a truly reflective analysis model, as it addresses both the positive and negative traits, as well as opportunities to grow whilst acknowledging potential threats (obstacles) it would have to overcome to achieve respective goals. The following two tables will show the S.W.O.T. Analysis of Chipotle.
Table 6: Table to show the Strengths and Weaknesses of the S.W.O.T. Analysis of Chipotle
Strengths Weaknesses
- Large number of loyal customers
- Positive word-of-mouth (online and offline) for brand awareness and marketing
- Large Facebook following (1.3 Billion likes) compared to its competitors: Panera Bread (513,000), Pei Wei (102,000), Qdoba Mexican Grill (92,000)
- Participates in charity fundraisers for brand …show more content…
There is opportunity to reconsider and/or redesign communication funnel for efficiency purposes.
- Reduction in SSS growth – opportunity to reconsider marketing technique and/or expenses
- Expanding too fast – opportunity to reconsider growth strategy
- Expanding overseas – opportunity to study new markets and possible take market shares overseas - Expanding overseas, information systems there may not be compatible
- Locals may not be accustomed to product/service concept
- Different economy, different culture, different environment, thus, may not fit in or thrive
- Strong competition may already be dominating the country of interest
- Current communication method via one corporate office will result in communication (and language barriers) issues with stores overseas
- Language and cultural barriers
- Cost to expand or establish new stores overseas can be costly depending on where the target areas are
- Economy may not be sustainable for this sort of business
- Food industry is very competitive, staying at the same price may result in the reduction in sales
- Rival chains also looking to expand domestically and