Chipotle Mexican Grill

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designs have lowered development and construction costs while positioning Chipotle as a restaurant in consumers’ minds. With limited menu Chipotel doesn’t need extra training and advertising cost while increasing efficiency in preparation and throughout. Customer also can customize their own meal using any fresh ingredients or by using organic ingredients, cage free animals, and fully committing to its “Food With Integrity” campaign, Chipotle can attract consumers with similar values.

Chipotle has differentiated itself through its marketing initiatives including the use of print, online, outdoor, transit, theatre, and radio advertisements. Chipotle has also been involved in various community events where stores have opened and even started its own food and music festival called ‘Cultivate’ to educate attendees about sustainability and cooking. It has stayed up to date with technological advancements, allowing customers to place orders by phone, fax, online, or on an iPhone. It has also been mentioned in articles and on television, generating positive publicity and increasing brand awareness amongst consumers and to create emotional interaction with consumer.

Weaknesses

The price offered by Chipotle relatively high compared to its competitors due to the materials they use higher organic and natural ingredients cost and make customers may prefer a competitor who has cheaper prices or provides more opportunities to save money. Chipotle’s marketing department prefer to creates short films instead of commercials for television, this is backfired for chipotle too reliant on marketing through word of mouth so that the a few promotion is done even though financially profitable but not effectively.

External Analysis

Opportunities

Chipotle is at a great advantage because its food offering a healthy food to consumers. As the healthy life trend keep up, organic foods continues to spread domestically and abroad, Chipotle’s market segment and profits will do the same. If the suppliers become aware of the healthy life trend, they will continue to use environmentally friendly and sustainable methods for their crops, therefore increasing the number of potential suppliers for Chipotle.

Chipotle’s new chain, Shop House Southeast Asian Kitchen is another great opportunity. By providing the same simple menu, layout, and atmosphere as Chipotle, consumers can easily understand how the restaurant works.

Threats

The main threat of chipotle is their price is higher than competitor. The fact of the limited of organic food now slowly become huge threat in the future of this chipotle customers who want the healthy food, This problem has made the suppliers hard to meet their growing demand. As a result, some Chipotle restaurants have returned to using “conventionally raised meats” in 2011 and 2012. In the meantime, customers demand for the meals now higher than before and made effects to the economy and technology.

Customer will think twice to spend their money with the things or foods are not necessary for them. Last, era of technology will share or give any information to anyone who use the technology itself. Chipotle must more caution with transparent about their food ingredients or their recipes will make this fast food restaurant lose their business.

Value Chain Analysis

Primary Activities

Supply Chain Management:

Chipotle’s has been intensively building long-term relationships with reliable food industry suppliers. Chipotle keeps a list of approved suppliers, which include people who can meet their quality specifications and guidelines.

Operations:

Chipotle’s making standards for all the operational processes from the suppliers they buy, the distribution centers they control, and the food they will served, so they had Quality Assurance department that monitors quality and food safety regulation that have been set from company.

Distribution:

Chipotle uses distribution centers to make purchases from all suppliers, they operated in different regions that supply ingredients and other supplies to all Chipotle restaurants. They is planning to add more distribution centers as they expand for long term.

Sales and Marketing:

Chipotle using social media as one way to interact with public. One part of their marketing strategy involves the use of promotional activities in newly opened restaurants to raise awareness about the new store opening. Chipotle also gains publicity from favorable articles about their food and service.

Service:

Chipotle main goal in service is to have customer’s order ready as quickly as possible without reducing the quality. They create an order system such a service line that efficiently reducing the ordering time for dine in customer or for the customer that want to take away the food.

Support Activities

Product R&D, Technology, and Systems Development:

Since chipotle started their “Food With Integrity” campaign, they tried to researching ways to use organically fresh ingredients. And then they researched farming companies who practiced animal ethics and cared about the environment in accordance with their commitments to ensure that they receive fresh and pure products that are healthy for their customers.

Human Resources Management:

In every store chipotle restaurant seek to hire individuals who are very enthusiastic, good leadership with culture building responsible and team-oriented to ensure a positive working environment.

General Administration:

Chipotle’s has a team of real estate managers who research & development potential locations for investment new restaurants. With the available information from the internal team, chipotle has started a new project by opening Shop House, which serves Southeast Asian cuisine .

CONCLUSION

In this era, fast food industry now become a constant grow market. if chipotle want to growing their market, they must planning on enhancing their menu in a good way. To keep their market segment, they should keep their philosophy with their best-quality