Present:
Shake Shack’s mission statement is “Stand for something good”. Even though this mission statement seems motivating and strong, it is vague. A good mission statement should mention what business the company is involved with and be more specific to attract attention of the people who possess a sense of familiarity of the industry. I believe that Shake Shack works based on the Differentiation Strategy. Differentiation is a strategy used by companies to increase the perceived value of their products/service to lure consumers into buying their product/service over the similar products produced by their competitors. This strategy works best when a company puts a great emphasis on major aspects of the business-like hospitality, pricing, …show more content…
This is since Shake Shack’s competitors will probably start increasing the quality of their products which will in turn increase the price of their products. This means that the competitor’s food will taste as good as Shake Shack’s and this will drive away their loyal business since customers are getting equally good tasting food for a cheaper price. This would put Shake Shack in a tight spot as they cannot increase their prices by much since they are already high. In my opinion, Shake Shack should start implementing economic meal offers for e.g.: Offering a free soda with two burgers. Economic offers seem to go a long way in building customer loyalty. I believe that Shake Shack’s competition will remain the same over the next 7-10 years unless some unknown circumstances take and prove otherwise. The concept of complementing products for mutual benefit is very selective since it only works for a few products. Ex, electronics. In the case of Shake Shack, the company could work out a certain plan with another business, for example, 7/11 or Wawa, wherein for every five purchases at Shake Shack, the customer is entitled to a $5 coupon at another place of business. Also, I feel Shake Shack should implement a better mission statement and a stronger long term vision which will inspire its workers, especially the management team which will help the …show more content…
Firstly, Shake Shack might run into trouble offering discounts and offers on certain products. Shake Shack will have to work out plans and strategies to figure out which products they can offer discounts on based on whichever product is most popular. Another implementation issue that might seem to serve as a problem for Shake Shack in the future is that after expansion, both locally and internationally, the company might face dilution of brand identification. Also, while implementing a new strategy, an old mission statement and vision might serve as an issue in terms of providing motivation for employees. (especially the managers). Shake Shack should come up with a vision that focuses more on the Economy (E) aspect than the Differentiation (D) aspect. Since Shake Shack does not have a big advertising budget, it might face an issue while trying to advertise their new promotional offers. Shake Shack mainly advertises on Social media which has worked out very well in the past but in order to compete with giants like Mcdonalds, they will have to pursue a more aggressive attitude towards growing. Another issue that might come in the way of implementation is that the team might not be able to come up with offers which can serve beneficial for consumers (cheap) and at the same time, seem viable to offer by the
Shake Shack’s mission statement is “Stand for something good”. Even though this mission statement seems motivating and strong, it is vague. A good mission statement should mention what business the company is involved with and be more specific to attract attention of the people who possess a sense of familiarity of the industry. I believe that Shake Shack works based on the Differentiation Strategy. Differentiation is a strategy used by companies to increase the perceived value of their products/service to lure consumers into buying their product/service over the similar products produced by their competitors. This strategy works best when a company puts a great emphasis on major aspects of the business-like hospitality, pricing, …show more content…
This is since Shake Shack’s competitors will probably start increasing the quality of their products which will in turn increase the price of their products. This means that the competitor’s food will taste as good as Shake Shack’s and this will drive away their loyal business since customers are getting equally good tasting food for a cheaper price. This would put Shake Shack in a tight spot as they cannot increase their prices by much since they are already high. In my opinion, Shake Shack should start implementing economic meal offers for e.g.: Offering a free soda with two burgers. Economic offers seem to go a long way in building customer loyalty. I believe that Shake Shack’s competition will remain the same over the next 7-10 years unless some unknown circumstances take and prove otherwise. The concept of complementing products for mutual benefit is very selective since it only works for a few products. Ex, electronics. In the case of Shake Shack, the company could work out a certain plan with another business, for example, 7/11 or Wawa, wherein for every five purchases at Shake Shack, the customer is entitled to a $5 coupon at another place of business. Also, I feel Shake Shack should implement a better mission statement and a stronger long term vision which will inspire its workers, especially the management team which will help the …show more content…
Firstly, Shake Shack might run into trouble offering discounts and offers on certain products. Shake Shack will have to work out plans and strategies to figure out which products they can offer discounts on based on whichever product is most popular. Another implementation issue that might seem to serve as a problem for Shake Shack in the future is that after expansion, both locally and internationally, the company might face dilution of brand identification. Also, while implementing a new strategy, an old mission statement and vision might serve as an issue in terms of providing motivation for employees. (especially the managers). Shake Shack should come up with a vision that focuses more on the Economy (E) aspect than the Differentiation (D) aspect. Since Shake Shack does not have a big advertising budget, it might face an issue while trying to advertise their new promotional offers. Shake Shack mainly advertises on Social media which has worked out very well in the past but in order to compete with giants like Mcdonalds, they will have to pursue a more aggressive attitude towards growing. Another issue that might come in the way of implementation is that the team might not be able to come up with offers which can serve beneficial for consumers (cheap) and at the same time, seem viable to offer by the