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For Chipolte - Case Study Example

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Chipotle Mexican Grill popularly referred to Chipotle is a group of restaurants in the United States of America, Canada, France and the United Kingdom. It was first established in the year 1993 and concentrates on burritos, tacos and burrito bowls. It has steadily expanded to…
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Case Study for Chipolte
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Download file to see previous pages It also thrives by having smaller entities which immensely subsidize on the labor costs. As part of achieving high output, the company adopted solar panels for its peak period operations. This has also ensured high degree of environmental friendliness.
The first part of this study involves carrying out a value chain analysis for Chipotle. Value chain analysis is the instrument for assessing the competitive advantage in relation to the market trends. The aim is to help a company achieve the greatest possible significance over its competitors. It also makes the company more appealing to win the people being served, that is, the whole idea is customer-focus (Bischoff 5). And for Chipotle, this is in line with its mission, which is to deliver high quality output at a low cost and a considerable shorter duration of time.
The rapid development and substantial revenue of Chipotle saw it attract many investors. Also, with the steady increase of clients preferring the good quality food it offers, it became successful expanding into a big corporation. But the decision to increase the food prices affected its stock significantly. This was coupled with the stiff competition from other restaurants resulting into a 4 percent decline of output. To address this, Chipotle should continue with its gourmet ingredients at relatively lower prices, since its competitors do not offer organic components as it does. This will make it thrive since its marketing strategy is also through promotional events and verbal advertising of which none of its competitors uses. This makes it more outstanding than other businesses because it is able to stay in touch with its clients, thereby can get immediate feedback concerning the quality of services.
Chipotle must continue to major on showcasing its value ingredients, i.e. displaying the quality of its products. This is because of the stiff competition and rivalry that exists in the restaurant industry, which ...Download file to see next pagesRead More
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