Chipotle Case Study
Chipotle operates under a single business strategy in which it generated at least 95% of revenue from corporate owed restaurant. The advantage of having a single business strategy is that Chipotle focused their operation on one idea to expand their opportunity and growth. They focus their growth on Chipotle Mexican Grill domestically and internationally. Chipotle devoted their effort to one concept allowed them to create a more comprehensive plan. All their departments are working towards the same goals and objectives which can lead to better management.
Recommendation
A logical way that Chipotle can grow is to expand internationally and domestically. The company should focus their effort on to expanding to different countries outside the U.S. Many other fast food chain has successfully tap into the international markets. Such companies include McDonald, Starbucks, KFC, and many more. One major potential growth for Chipotle is the branch out to Asia. “Emerging and Developing economies dominated the period between 2006 and 2015. Emerging and Developing Asia, in particular, grew at an average annual pace of 8 %” …show more content…
(Pasquali). With Asia GDP rising higher and consumers having more of a disposable income, Chipotle can expect exponential growth. Once management is confident that it has the right team, product, locations, and strategy in place Chipotle can expand quickly worldwide. Another recommendation that Chipotle can do to for long term growth is to release another type of food products. Consumers may feel bored or tired of eating just Mexican style food. Just like Chipotle’s off brand ShopHouse and Pizzeria Locale, they have a chance give customers varieties. Customer comes for the Chipotle concept which is healthy fast food at a reasonable price. If Chipotle can expand to different types of food then they can capture more of their target audience.
Conclusion
Chipotle lays in the industry where high failure rate outweigh being successful.
The main reason for this is because of high rates of competitors. With the low barriers of entry, many companies cannot compete with an industry with many alternatives. What lead Chipotle being successful today is because of their concept. They provide customers with fast and healthy food and becoming more aware on customer’s trends. There are many opportunities that Chipotle can dominant the market only if management are ready with the right strategy. Expanding their brand internationally will provide Chipotle a bigger market. Chipotle is a very organize operation and will continue for potential growth. Chipotle will continue to provide with customers wants. With the large population being more health conscious, Chipotle can become the top competitor in this
industry.
Recommendation
A logical way that Chipotle can grow is to expand internationally and domestically. The company should focus their effort on to expanding to different countries outside the U.S. Many other fast food chain has successfully tap into the international markets. Such companies include McDonald, Starbucks, KFC, and many more. One major potential growth for Chipotle is the branch out to Asia. “Emerging and Developing economies dominated the period between 2006 and 2015. Emerging and Developing Asia, in particular, grew at an average annual pace of 8 %” …show more content…
(Pasquali). With Asia GDP rising higher and consumers having more of a disposable income, Chipotle can expect exponential growth. Once management is confident that it has the right team, product, locations, and strategy in place Chipotle can expand quickly worldwide. Another recommendation that Chipotle can do to for long term growth is to release another type of food products. Consumers may feel bored or tired of eating just Mexican style food. Just like Chipotle’s off brand ShopHouse and Pizzeria Locale, they have a chance give customers varieties. Customer comes for the Chipotle concept which is healthy fast food at a reasonable price. If Chipotle can expand to different types of food then they can capture more of their target audience.
Conclusion
Chipotle lays in the industry where high failure rate outweigh being successful.
The main reason for this is because of high rates of competitors. With the low barriers of entry, many companies cannot compete with an industry with many alternatives. What lead Chipotle being successful today is because of their concept. They provide customers with fast and healthy food and becoming more aware on customer’s trends. There are many opportunities that Chipotle can dominant the market only if management are ready with the right strategy. Expanding their brand internationally will provide Chipotle a bigger market. Chipotle is a very organize operation and will continue for potential growth. Chipotle will continue to provide with customers wants. With the large population being more health conscious, Chipotle can become the top competitor in this
industry.