Preview

Chipotle Core competency

Powerful Essays
Open Document
Open Document
1215 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Chipotle Core competency
Chipotle Core competency
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

You May Also Find These Documents Helpful

  • Good Essays

    Chipotle Mexican Grill has emphasized on their customers and are not afraid to remain sincere and acknowledge their errors, even when they are losing revenue. Last year Chipotle went through a crisis where they force the chains to close serval of restaurants due to a norovirus outbreak. Other food-borne illness cases were also related with Chipotle restaurants that includes E.coli, and salmonella. As a consequence, the company is under investigation. Also their sales and stocks have decline because of the outbreaks that occurred.…

    • 390 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors. In 1999 they opened their first out-of-state stores in Minnesota and Ohio. As Steve was seeing rapid growth with his company, he was also noticing significant issues with the quality of the food being desired in this industry. After learning how pork was traditionally raised in the United States Steve Ells started his business down a new path. This lead to the concept of “Food with Integrity” , which was as a result of Steve’s decision to sell only the highest quality organic and naturally raised foods. Chipotle Mexican Grill continues to grow rapidly and in 2006 went public on the New York Stock Exchange. By 2012, Chipotle Mexican Grill had over 1400 company-owned stores taking over as the number two Mexican fast food restaurant for total sales in the US market. Today the overall business environment for Chipotle Mexican Grill is very good. The company has grown by over 50% since 2010 and is seeing increases in revenue averaging between 18% and 20% each year. Since going public the company has seen a 4000% return in their stock prices. Chipotle Mexican Grill continues to grow an average of 150+ stores per year. Based on their financial reporting for 2013 they had reached $3.21 billion in revenue. The significant amount of growth…

    • 1753 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    When Steve Ells decided to create a restaurant concept that combined the quick-serve experience with exceptional quality food, he didn’t know it would be an instant hit (Thompson, Peteraf, Gamble, & Strickland III, 2015). He was looking for a way to use his culinary training and restaurant experience to elevate the fast-food concept. This transformed the way people thought about fast-food. His concept centered on a focused menu serving only high-quality, fresh ingredients using traditional cooking methods and made-to-order preparation in a restaurant interior that was aesthetically pleasing but still prepared in under 2-3 minutes. And Chipotle Mexican Grill was born! Within six years of being open, Chipotle Mexican Grill went public on the New York Stock Exchange, doubling its stock price the first day (Thompson et al., 2015). Year after year, Chipotle has been able to grow revenue from $3.2 billion to $4.1 billion ("CHIPOTLE MEXICAN GRILL INC (CMG:New York): Financial Statements - BusinessWeek," n.d.). See Exhibit 2 for Chipotle’s Financial Statement.…

    • 1654 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Founded by Steve Ellis in 1993, his main focus was to transform "fast food" to an experience more similar to fine dining. Taking inspiration from features commonly found in fine-dining, he wanted the strategy for Chipotle Mexican Grill to focus on the following five elements:…

    • 706 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Conversely, it is not easy to tell the source of the infection. Chipotle deals with a larger chain of supply, therefore, it makes it tougher to detect where the dieses is coming from. Chipotle has about one thousand nine hundred foot outlets. The more stores may result in food shortage and improper food safety.…

    • 456 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Chipotle vs Panera

    • 1784 Words
    • 8 Pages

    When Chipotle opened its first store in 1993, the idea was simple: demonstrate that food served fast didn 't have to be a "fast-food" experience (Chipotle.com, 2010). Chipotle uses high-quality raw ingredients, classic cooking methods and a distinctive interior design. In the past year, Chipotle reached an important milestone of serving 100% naturally raised chicken in all of its U.S. restaurants while increasing the quantity of naturally raised beef to more than 60%. During 2008, Chipotle increased its revenue by 22.7%.…

    • 1784 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Chipotle Case Study

    • 427 Words
    • 2 Pages

    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.…

    • 427 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Chipotle Mexican Grill restaurant received a lawsuit against them because the false advertising is violating “Don’t lie” in the KTER. Lying has a negative result on human flourishing. Because it diminishes trust between human beings, may become a habit. Also leads people to make decisions on false information. With this violation many are affected. In chipotle all the diners were affected. The diners flourishing was damaged because they possibly made a decision they would not usually make with the lie told, they doubt their own ability to assess the truth and to make decisions. Impacted their relationships and their choices.…

    • 100 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    The company has many networks with different suppliers for each and every ingredient. It helps the company to have many customers even though their selling price is higher than their compotators. When we come to the marketing strategy, Chipotle Mexican Grill is shifting from traditional promotion to word of mouth publicity. As a result the company minimizes its advertizing cost by using different loyalty programs like “farm team.” Another unique strategy of CMG is investing their money to other related business sectors like farming and solar panel…

    • 554 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Recently there has been a steep decline in revenue for fast food restaurant, Chipotle Mexican Grill after the announcement of an E. coli outbreak in late October. By the end of November 2015, the company’s customer satisfaction, sales and stock had fell dramatically. This outbreak of illness due to E. coli associated with Chipotle restaurants is an ongoing crisis causing customers to boycott the fast food chain.…

    • 67 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Chipotle Observation

    • 318 Words
    • 2 Pages

    It has come to my attention that there has been a decrease in productivity in the overall staff. At Chipotle, we must pride ourselves in being the fastest and most effective company around. In an effort to increase productivity and maintain 100% customer satisfaction, I suggest that all employees that were hired before April 10th, 2016, should undergo mandatory Productivity and Efficiency Reform Training.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In late 2015, two outbreaks appeared in America. In the first, larger outbreak, 55 people infected with Escherichia coli O26 (STEC O26). 55 people are from 11states. 21 ill people were hospitalized. In the second outbreak, 5 people from 2 states infected with STEC O26 and 1 people was hospitalized (CDC, 2016). FDA along with CDC and local public health official investigated two outbreaks and found that most of the victims ate Chipotle Mexican Grill before. They think two outbreaks may relate to Chipotle Mexican Grill. Chipotle Mexican Grill voluntary closed 43 restaurants located in Washington and Oregon in early November (FDA,2016).…

    • 660 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Essay On Chipotle

    • 420 Words
    • 2 Pages

    Chipotle is a fast casual restaurant that was founded by Steve Ellis in 1993.Chipotole serve customized burritos and salads to its customers. Chipotle is now growing at rapidly pace globally, where is has 1,500 location and 37,310 employees. Chipotle main competitors are place like Qdoba, Taco bell, and many more places. Also, Chipotle is very competitor in the market, it make adjustment to the competition like not charge for extra guac because Qboda doesn’t. They are a major competitor in the food industry and they have face many problems will developed a strategy to get through it.…

    • 420 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Nutrition Discussion

    • 779 Words
    • 4 Pages

    Chipotle is one of my favorite, if not my absolute favorite, fast food restaurants to dine at. I like Chipotle because their food is always fresh and tastes great. Furthermore, I am a big fan of their "Food with Integrity" mission. Information about this mission can be found in the restaurants and on their website. In short, the "Food with Integrity" mission is a commitment established by the company to to serve good quality food by using, whenever possible, meat from animals who are treated properly and organic food products, while supporting local/family…

    • 779 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Firstly, core competency considers the needs and value that customers need. This can significantly improve the efficiency of products and service improvement as well as reduce costs along with the increasing of competitive advantage of the firm. For example, the core competence of FedEx is the high-level logistic management, even it has the relatively more expensive than the peers, it still popular with high reputation among customers with efficient highly-speed delivery. Apple has the product of iPod Nano has the core competence of small size, which can be brought with conveniently.…

    • 946 Words
    • 3 Pages
    Good Essays