Swot Analysis Chipotle Mexican Grill
Chris Smith
Prof. Jones
Business Strategy
15 April 2015
Chipotle: Mexican Grill Analysis
Introduction
Chipotle Mexican Grill is a major restaurant in the category of “fast casual food,” which is a 4% makeup of the total restaurant industry. Chipotle saw tremendous growth since its initial public offering in 2006, going from stock prices of $45 a share, all the way to prices of $302.96 in 2012. However, Chipotle has seen its share of downturns over the year and may be in danger of a downward trend. This can be attributed to multiple issues. The emergent of new competitors, or existing competitors with new products, rising costs of product, and lack of innovation could all attribute to a downward turn. All of these will be examined throughout …show more content…
However, with this decline they still saw a 41% increase in net income from 2009 to 2010 and 20% from 2010 to 2011. With Chipotle operating in a restaurant segment that only makes up 4% of the entire industry, it is important that they keep stock prices up and net income up as well. This is especially true when there is competition that is providing somewhat equal food at a lower price in Taco Bell, and restaurants that provide basically the same service in places such as Moe’s Grill. The questions is, what can Chipotle do to capitalize on the market and take advantage of opportunities that exist? Chipotle might be in a downward trend at the moment, but that can most certainly be turned …show more content…
Chipotle is no different. Chipotle deals with rivalry from Taco Bell, Moe’s, Qdoba, and others. The fast casual and fast food industries are growing and the switching costs are very low between companies. A consumer can very easily switch from Chipotle to one of its competitors with ease. It is important for Chipotle to be able to keep prices competitive, keep customers loyal, and keep quality high. The threat of substitute can come from any one of Chipotle’s rivals. Taco Bell has brought this threat to light with their Cantina Bell menu. This threatens Chipotle’s menu, because it provides equal products at a lower price. Any products like this can provide a threat to the prosperity of Chipotle. Chipotle has to depend on their quality, customer loyalty, and brand identification in order to stay ahead of the competition. The buyer has power because they can very easily take advantage of a substitute product in the food industry. Chipotle has some power over the buyer, because they do offer a fresher, higher quality product than many of their competitors. However, all restaurants could be threatened if more buyers start to spend more money on dining at home and not in
Prof. Jones
Business Strategy
15 April 2015
Chipotle: Mexican Grill Analysis
Introduction
Chipotle Mexican Grill is a major restaurant in the category of “fast casual food,” which is a 4% makeup of the total restaurant industry. Chipotle saw tremendous growth since its initial public offering in 2006, going from stock prices of $45 a share, all the way to prices of $302.96 in 2012. However, Chipotle has seen its share of downturns over the year and may be in danger of a downward trend. This can be attributed to multiple issues. The emergent of new competitors, or existing competitors with new products, rising costs of product, and lack of innovation could all attribute to a downward turn. All of these will be examined throughout …show more content…
However, with this decline they still saw a 41% increase in net income from 2009 to 2010 and 20% from 2010 to 2011. With Chipotle operating in a restaurant segment that only makes up 4% of the entire industry, it is important that they keep stock prices up and net income up as well. This is especially true when there is competition that is providing somewhat equal food at a lower price in Taco Bell, and restaurants that provide basically the same service in places such as Moe’s Grill. The questions is, what can Chipotle do to capitalize on the market and take advantage of opportunities that exist? Chipotle might be in a downward trend at the moment, but that can most certainly be turned …show more content…
Chipotle is no different. Chipotle deals with rivalry from Taco Bell, Moe’s, Qdoba, and others. The fast casual and fast food industries are growing and the switching costs are very low between companies. A consumer can very easily switch from Chipotle to one of its competitors with ease. It is important for Chipotle to be able to keep prices competitive, keep customers loyal, and keep quality high. The threat of substitute can come from any one of Chipotle’s rivals. Taco Bell has brought this threat to light with their Cantina Bell menu. This threatens Chipotle’s menu, because it provides equal products at a lower price. Any products like this can provide a threat to the prosperity of Chipotle. Chipotle has to depend on their quality, customer loyalty, and brand identification in order to stay ahead of the competition. The buyer has power because they can very easily take advantage of a substitute product in the food industry. Chipotle has some power over the buyer, because they do offer a fresher, higher quality product than many of their competitors. However, all restaurants could be threatened if more buyers start to spend more money on dining at home and not in