Chipotle Case Essay

The advantages Chipolata holds over their competition is they offer a quick affordable healthy alternative that isn’t provided by the majority of the fast food industry. They have altered the perception of fast meaning unhealthy into to being able to grab a wholesome nutritional meal in just the matter of seconds. One of the key success factors is that they pride themselves on offering “Food With Integrity’ which they break down in to the 3 following points: 1 .

It means serving the very best sustainable raised food possible with an eye o great taste, great nutrition and great value. 2. It means that we support and sustain family farmers who respect the land and the animals in their care. 3. It means that whenever possible we use meat from animals raised without the use of antibiotics or added hormones. Weaknesses Although being leveraged as their competitive advantage by offering a differentiation strategy of “Food With Integrity’ this also correlates to them having higher priced menu items along with having a limited selection.

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The next thing they are lacking on is international presence, while they are still in growing phase the competition is establishing similar models in other territories to mimic their success. Opportunities Chipolata as a rapid expending company has many opportunities to be an international success by ramping up international expansion through a sprinkler approach. They have had a positive reception from entering Canadian and UK markets and should look to taking the model to other countries and also taking the opportunity to adding greater diversity to the menu.

Threats The biggest threat Chipolata faces is other restaurants copying their model and expanding to areas where currently there is no Chipolata. Even if there is direct competition the threat of new entrants is high because switching cost is low, the only the inning sustaining them against the competition is their established brand reputation. Conclusion In conclusion from the Soot analysis it reveals that Chipolata has a strong position in the market as fast casual restaurant.

From offering a unique differentiated strategy they have been able to capture a large market share and build strong brand equity over the years of operations but however are still very susceptible to competition. It also shows that chipolata is in an exponential growth phase, as they have fined tuned operations in the US they are ready to ramp up expansion into international territories. Spittle’s Strategy! Spittle’s strategy is pretty unique in the sense they offer high quality food served in a fast paced model. They differentiate themselves by being the best cost provider while maintaining minimal wait times for a fast healthy meal.

In combination with great customer service and their notion of offering highest quality ingredients possible they created an attractive value proposition that has proven to be successful. 0 Competitive Assessment ” Key SFA “Customer “Satisfaction Price “Geographical “Reach “Brand Equity “Menu Range “Sales Total Weighted Score Card Weight Chipolata Taco Bell Kabob Moue’s 10 0. 2 0. 05 8 7 9 6 7. 5 6. 35 6. 8 0. 25 0. 1 From the competitive assessment above we can see some of the key success factors that really drives Spittle’s strategy against its competition but also some of the short comings.

From looking at the score Taco Bell actually tied with Chipolata this can be explained simply by the fact they are each targeting different segments of the market. For chipolata they are targeting the health conscious medium income market where Taco bell is a low cost provider arresting lower income families who are unconcerned with the quality of their food. So where Chipolata falls short is where Taco Bell succeeds and vice versa. Recommendations Redefining fast-casual dining segment Chipolata has taken the world by storm with their winning combination Of high quality food with excellent and speedy customer service.

They have not only built themselves an empire with one of the highest priced stocks of any chain restaurant they are a house hold name and cult following among the fitness community. As for recommendations their strategy is pretty air tight with every move they make being calculated ND executed with precision. Based on the information above the first recommendation would be to capitalize on the cult following created in the fitness community as they are vocal segment willing to advertise at a low cost since brand loyalty is strong among this segment.

This can simply be done by sponsoring fitness gurus & coaches of the Youth community where some of these people have an outreach of hundreds of thousands of viewers with strong influence over their audience. Second recommendation would be to explore technological innovation to enhance the value chain. What I mean by this is things like creating an app to SE your mobile device to order your meal in turn enhancing efficiency of the flow through the queue and stations while also reducing the chance of human error through vocal communication.

This also provides greater opportunity for crafting new segment based strategies from metrics received from digital orders. With the implementation of these two recommendation I truly believe it can impact the organization in a positive manner however risky and capital intensive these projects may be its about predicting the position of how food industry is changing day by day by taking leaps and creating new segments.