Table of Contents
Chipotle’s Core Competences
The primary and secondary components of Chipotle’s value chain
The chief components of Chipotle’s strategy
The generic competitive strategy
Comparison between Chipotle’s strategy and Moe’s
Weighted competitive strength assessment
Chipotle Mexican Grill is a restaurant company specializing in fast food. Started in Denver, Chipotle now operates 1,230 stores in 41 states in the District of Columbia, Canada, and the United Kingdom. Chipotle serves a limited menu that is highly customizable. They pride themselves on serving high - quality raw ingredients together with classic cooking methods that are grown in a sustainable and human manner. For 1993, Chipotle has launched first and enjoyed rapid growth and increasing success. In 2011 alone, revenues reported are $2.3 billion. Chipotle has seen its revenues and net income increase in each of the past five years. It has expanded rapidly even through national economic hardships and uncertainty and has seen its profit margins grow healthily the past three years. Chipotle should continue its growth in the United States both increasing density in current locations as well as expanding into areas that, as of now, are untapped by Chipotle. Also, after achieving initial success in Chipotle should continue to test the next market by slowly entering other major cities but keep their focus on domestic expansion. With this stated expansion, Chipotle should continue and increase its use of the smaller, more efficient a Model style restaurant. Chipotle has recently hired workers in its restaurant and is the current target probes in multiple states. In addition, Chipotle tighten its hiring policies and possibly help them gain the right to live and work in a second home run. The last recommendation is not only to continue its initiative but also to advertise the initiative more heavily as it is a major differentiating factor between Chipotle Mexican Grill and its competitors.
Chipotle Mexican Grill is a fast food restaurant business with the biggest innovation that food served orders quickly. They currently operate to serve over 800,000 customers per day. With an emphasis on having fresh, high-quality all natural ingredients Chipotle has created a unique experience for consumers. They have a focused menu, the food is assembled in front of you, and all their locations have a unique, distinctive ambience. They strive to be a hip company and so they offer online ordering and even have an iPhone application to keep with current trends. Chipotle is a very strong, widely-recognized brand that now dominates the Mexican fast food restaurant sector with over twice as many restaurants as their closest competitor, Qdoba Mexican Grill. History
Chipotle was founded in 1993 by Steve Ells, who is still Chairman and co-CEO of Chipotle. The first location was in Denver. In January 2006 when the company went public, the stock doubled on its first day of trading, jumping from $22 per share to $44 per share. In 2011, Chipotle’s revenue is quite high around $2.3 billion. In 2011-2012, Ells and other Chipotle executive were busily planning the launch of a second restaurant concept, ShopHouse Southeast Asian. As of late February 2012, Chipotle Mexican Grill’s stock price had climbed to record highs each of past seven weeks and was trading in the $380-$385 range, up more than 80 percent since January 1, 2011 and up 334 percent since January 1, 2010. For this reason, Chipotle Mexican Grill is analyzed as “the perfect stock”, and another believed that Chipotle could well prove to be the next McDonald’s.
In 2010, Chipotle had revenues exceeding $1.8 billion which was up almost 21% above 2009 numbers. Net income increased...
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