Chipotle faces moderate rivalry among existing firms as it faces low numbers of competitors namely Taco Bell, Moe’s Southwest Grill, Qdoba Mexican Grill and for the smaller chains including Baja Fresh and also California Tortilla. In addition, Chipotle’s products are moderately differentiated as its quality and nutritious ingredients, customized products offer to customers, ability to serve orders quickly, emphasise on quality assurance and food safety at the same time offering best possible experiences to customers. Moreover, Chipotle experiencing growth demand from customers as more restaurants open at Paris and France in 2012.
Bargaining power of buyers The bargaining power among buyers is relatively low because …show more content…
Consumers might switch to another competitors such as Taco Bell, Moe’s Southwest Grill and Qdoba Mexican Grill. Taco Bell Moe’s Southwest Grill and Qdoba Mexican Grill also offer upscale menu selections and also high quality ingredients in producing their products. For Taco Bell, in term of food quality, it is the lowest compared to three of the companies. Yet, Taco Bell priced below similar types of Chipotle products. For Moe’s Southwest Grill, it also offer customized main dishes. For Qdoba Mexican Grill, it offer handcrafted dishes with fresh ingredients and innovative flavors by skilled cooks. But, the possibility of Chipotle being fully substitute is merely impossible because the experiences offerd by Chipotle towards their customers. Other than that, threat might face by Chipotle is customers might make their own food instead of having meal in Chipotles.
Bargaining power of suppliers The power among the suppliers is high because Chipotle has limit the approved suppliers for purchasing the ingredients. Chipotle only open the supply of ingredients from reputable food industry suppliers. It do so as to make sure the quality of ingredients meets the requirement and able to control the cost of ingredients. Chipotles might face shortage of ingredients supply at various time due to growing seasons and also natural disasters.
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