Core competencies are the unique ability that a company acquired when the company initially setting up. It is the inborn competitive advantage that cannot be easily imitated by competitors. When Chipolite was born, its owner Steve Ells targeted it as the fresh and healthy fast food which means its products need to be fresh and fast delivery. In current dining market, there are three types of restaurants: full service, fast food and the restaurant in between. Chipotle belongs to the last one. Full service restaurant has the highest expense and longest time service, so it is only targeting for mid and high class customer with their leisure time consumptions. At same time, fast food restaurants, their aim is to provide quick food regardless of the quality. Therefore, Chipotle open the new door by combining the both characters with the quick food with good quality. Therefore, the combination of fresh and fast delivery should be Chipotle’s core competency.
Core competency analysis
Valuable:
There is no denying that quick food with good quality strategy is the valuable during the business. Since Chipotle is making the real food and selling them at the same time, the food must be fresh which is good for customers’ health. As for its food price, it will be higher than the fast food restaurant because of the food material and storage. However comparing with the full service restaurant, the cost will be much cheaper because Chipotle doesn’t need servicers. Therefore, it is valuable for our customers to have a cheap price with good quality food.
Rare
Most restaurants, they could only care one side which is either eating healthy or eating fast and cheap. It is hard for restaurants contains both healthy food and fast/cheap delivery together. Therefore, it is relatively rare to see the good restaurant to make a good balance of both scenarios. Since Chipotle did the balance very well and won the customers, it is a Core competency of it.
Difficult to