Chipotle
CASE STUDY - CHIPOTLE
Three key problems and/or issues that management had to address in developing a new strategy + what their solutions were to these problems. o Limited sustainable suppliers to cover demand and higher costs
Chipotle started to use organically grown local products and ingredients as part of a long-term management campaign to use top-quality, nutritious ingredients to improve “the Chipotle experience”. This was also designated as “Food with Integrity”. However, the market demand for these products was growing so fast that organic farmers were having difficulties keeping up with this growth. Consequently, the costs where higher and it was more difficult to cover the demand and cover the higher costs. The frequent supply-demand …show more content…
However, it was a fast-growing category, having doubled its share over the past 10 years.
Chipotle strive to create successful marketing campaigns to face the rivalry in the market. Besides, the word-of-mouth publicity from customers telling others about the positive experiences at the restaurants enabled the company to build excellent brand awareness with relatively low advertising expenses and to differentiate Chipotle from its competitors. o Economic instability
The negative economic situation in the country had an impact in the industry where the company was competing. However, this impact was severe as Chipotle set a strategy that avoided the shock of the environmental forces.
Despite the down economy of 2008-2009 recessionary period, consumers responded quite positively to fast-casual restaurants that used fresh ingredients and offered made-to-order alternatives to traditional fast food. Customers were more concerned about their health and were ordering healthier and more nutritious menu items.
Chipotle decided to limit the menu offered, nonetheless, the customers could customized their menus in the …show more content…
As I said before, consumers are showing growing interest in the origins of the food and how it is raised. o Serving food sourced form sustainable farming practices is really well perceived and rewarded by the customers. However, they should think of broaden the source of ethical suppliers to continue to grow, meet demand and ensure the entire menu is ethically sourced. o Chipotle has a higher market capitalization, revenues and income than rivals. It also has zero debt, unlike other competitors. Nowadays, it remains top among the Mexican food sector.
How this case is relevant to your final paper?
Like In N Out, Chipotle is providing fresh and high quality products. If the company violates this statement, it will lose the trust of the customers.
The same happens to In N Out. The business is based in providing quality products, so every location is situated at least within 300 miles of a distribution center. Nothing is frozen in In N Out. So when expanding internationally, they will also have to think about the distribution centers, etc. which results in a large amount of investment, in order to keep with the fresh and quality food philosophy and no to lose the trust of the
Three key problems and/or issues that management had to address in developing a new strategy + what their solutions were to these problems. o Limited sustainable suppliers to cover demand and higher costs
Chipotle started to use organically grown local products and ingredients as part of a long-term management campaign to use top-quality, nutritious ingredients to improve “the Chipotle experience”. This was also designated as “Food with Integrity”. However, the market demand for these products was growing so fast that organic farmers were having difficulties keeping up with this growth. Consequently, the costs where higher and it was more difficult to cover the demand and cover the higher costs. The frequent supply-demand …show more content…
However, it was a fast-growing category, having doubled its share over the past 10 years.
Chipotle strive to create successful marketing campaigns to face the rivalry in the market. Besides, the word-of-mouth publicity from customers telling others about the positive experiences at the restaurants enabled the company to build excellent brand awareness with relatively low advertising expenses and to differentiate Chipotle from its competitors. o Economic instability
The negative economic situation in the country had an impact in the industry where the company was competing. However, this impact was severe as Chipotle set a strategy that avoided the shock of the environmental forces.
Despite the down economy of 2008-2009 recessionary period, consumers responded quite positively to fast-casual restaurants that used fresh ingredients and offered made-to-order alternatives to traditional fast food. Customers were more concerned about their health and were ordering healthier and more nutritious menu items.
Chipotle decided to limit the menu offered, nonetheless, the customers could customized their menus in the …show more content…
As I said before, consumers are showing growing interest in the origins of the food and how it is raised. o Serving food sourced form sustainable farming practices is really well perceived and rewarded by the customers. However, they should think of broaden the source of ethical suppliers to continue to grow, meet demand and ensure the entire menu is ethically sourced. o Chipotle has a higher market capitalization, revenues and income than rivals. It also has zero debt, unlike other competitors. Nowadays, it remains top among the Mexican food sector.
How this case is relevant to your final paper?
Like In N Out, Chipotle is providing fresh and high quality products. If the company violates this statement, it will lose the trust of the customers.
The same happens to In N Out. The business is based in providing quality products, so every location is situated at least within 300 miles of a distribution center. Nothing is frozen in In N Out. So when expanding internationally, they will also have to think about the distribution centers, etc. which results in a large amount of investment, in order to keep with the fresh and quality food philosophy and no to lose the trust of the