Chipotle Competition Strategy: Case Study You Might Want To Emulate

Porter’s Five Model application for Chipotle

The model is used by different companies to make their products as diverse as possible for the market. To ensure that the goods and services sold are one of a kind. Threats of substitutions is a challenge as the food market has changed over the years with many cuisines being created by other franchises. The availability of options such as Asian food makes options more diverse. The company, therefore, needs to keep being creative to ensure they maintain their clients.
The new entrants make the company interested in making sure they keep up with research for the sake of the customers (Fontenot, 2014). For a restaurant such as Chipotle, newcomers are not a major challenge as they have already created a relationship with their clients and continue to make efforts of ensuring that the experience they have with their food is enough to keep them coming back. However, the company guarantees to keep research as a priority to create products that are of interest.
The company faces a challenge to the supplier power. The fact that the firm has particular needs of the types of meats they purchase from the vendor gives the suppliers an upper hand and control over the market provided by the restaurant (Fontenot, 2014). The solution the company chose was to work on how the meat was handled and make sure it is tested for pathogens before it is prepared for the customers. The preparation was also changed to night time to avoid contamination.
Competition from rivalry companies which the restaurant has been able to fight over the years. The strategy used is ensuring that the food sold is of the quality, the hospitality and ambiance of the place make it easy for the customers to keep choosing them. Customer service is their primary strategy for competition.

Reference

Fontenot, C.M. (2014). Strategic Analysis and Corporate Valuation of Chipotle Mexican Grill, Inc. MSc in Finance and International Business. Retrieved from http://pure.au.dk/portal- asb-student/files/76753887/Chipotle_Master_Thesis_2014_copy.pdf