Chipotle Inc: Rivalry among Existing Competitors

1339 Words3 Pages
bulb-icon

Recommended: chipotle mexican Grill, Inc. case study

Rivalry among Existing Competitors
Understanding the number of competitors and their capabilities in a particular market is a key function of building strategy. If a company is competing against another company offering the same product or service, it faces limitation in regards to both supplier and buyer power. Customers will always tend to go to the place where they get the same product for a cheaper price, while supplier will tend to flock to places where the deal is considerably high. For CMG, a key differentiation in its competition within the fast food industry is designated I its ability to meet a one of a kind fast food experience where customers experience fine-dining similar to high0end hotels, but a low prices. CMG additionally differentiates totally with its rivals in the sense that they struggle to offer healthy and high-quality food that positively impacts the society.
Threat of Substitute Products or Services
The ability of customers finding a proxy to a particular service or product is always a threat in business. The result is often a weakened business position for a particular company. For CMG, it is no different. However, the brand that the company has built over the years offers protection to the company because of loyalty. The fact that CMG offers a healthy menu for its foods also offers little option in reason for the customer to substitute its products.
Threat of New Entrants
It is not easy for competitors to enter the market operated by CMG. Apart from traditional competitors, few new entrants have delved into this industry due to the following reasons; economies of scale, high entry barriers, specialist knowledge, and time/money costs. This allows CMG to focus only on traditional competitors such as McD...

... middle of paper ...

...stomers not to bring guns into restaurants. BBC. Accessed on 27th May, 2014 from http://www.bbc.com/news/world-us-canada-27492193
Chipotle Mexican Grill, Inc. (2014). Chipotle Company About Us. In Chipotle.com. Accessed on 27th May, 2014 from http://www.chipotle.com/en-us/company/about_us.aspx
Harvard Business Review. (2008). The Five Competitive Forces That Shape Strategy. HBR. Accessed on 27th May, 2014 from http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1
University of Oregon Investment Group. (2012). Chipotle Mexican Grill, Inc. UOIG. Retrieved on 27th May, 2014 from http://uoinvestmentgroup.org/wp-content/uploads/2012/04/CMG-Update.pdf
Wee, H. (2014). How Feel Good Companies are Navigating the Minimum-Wage Fray. NBR. Accessed on 27th May, 2014 from http://nbr.com/2014/05/21/how-feel-good-companies-are-navigating-the-minimum-wage-fray/

Show More
Related

  • A1 Steak Sauce Case Study

    1042 Words  | 3 Pages

    Lawry’s sauce poses a serious threat to A1. Both firms have great brand awareness and unique value propositions. Though they have unique value propositions both the products are positioned close by regards to their offerings (Exhibit 3). Provided that Lawry is successful with its marketing campaign the launch threatens to cannibalize A1’s market share resulting in a hit in its profit. Nevertheless, A1 can leverage its strong market presence to ward off Lawry’s threat whilst at the same time it can also establish itself as a prominent player in the growing marinades market, already having 10% of the existing

    Read More

  • Analyzing Chipotle's Demographic Focus and Marketing Strategy

    1312 Words  | 3 Pages

    Demographically Chipotle focuses the majority of its sales on individuals between 18 and 24 years old which is the same as Taco Bell (Hitt, Ireland, & Hoskisson, 2013). This could potentially be correlated to the on the go, fast paced life styles that is typical for this age demographic. Chipotle offers a customizable menu that that appeals to the young adult that is constantly on the move and have a tighter budget. Chipotle’s marketing strategies appeal to the young adult through their social media platform campaigns that gain the attention of the young adult. Millennials have had a large influence on the growth of the company that has locations “located at various location types such as end of row shops, shops

    Read More

  • Dominant Features Of Publix, Wal Mart, And Walmart

    1129 Words  | 3 Pages

    A grocery store sells multitudes of products ranging from produce to cleaning supplies to appliances for households for consumers. This industry is not only large, but is dominated in the market by many chains such as Publix, Walmart, and Kroger’s, for example. As the market size for this industry is large, competition from competitors increases depicting on various reasons such as prices, marketing strategies, and service to consumers. Moreover, the profitability of firms in this industry depend on the what the other identical firms in the industry are doing i terms of its marketing tactics and price differentiations. Firms need to develop business strategies that match a firm’s vision and how it wants its consumers to view them as. In order for these

    Read More

  • Analysis Of Chipotle

    729 Words  | 2 Pages

    When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and

    Read More

  • Chipotle: Revolutionizing Fast-Food with Organic Ingredients

    543 Words  | 2 Pages

    Chipotle Mexican grill has transformed the way people think about fast-food through delivering exceptional Mexican dining experiences to its guests and providing a simple menu of organic ingredients, quick service and at a low cost. More than just a great experience, they have created a lifestyle where people have the pleasure of eating good and healthy.

    Read More

  • Brand Extension: Molson Coors Brewing Company

    744 Words  | 2 Pages

    According to Aaker (1990), two-thirds of the food product found on store shelves, are brand extension, which suggest the competitiveness of the business. It becomes imperative that marketers stay abreast of the shifts: who purchase the products; focus on the ideal target or segments; involve band loyalties on planning,

    Read More

  • An Anaysis of McDonald’s Corporation

    2712 Words  | 6 Pages

    The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:

    Read More

  • Pest Analysis For Amazon.Co.Uk

    1052 Words  | 3 Pages

    Firstly, one of the most important focuses would be given to the target customer as we will need to know more about their taste and preferences. What it is they need and or want. Particular topics covering this area will be, the need for ‘Market segmentation’, identifying a competitive position in the market about to enter in the market and studying consumer behaviour, will all be discussed.

    Read More

  • Gc3's Competitive Advantage Essay

    746 Words  | 2 Pages

    GC3’s sources of competitive advantage come from their simple strategy of selling quality products at an affordable cost (Great Cups of Coffee, n.d.). This simple strategy has helped the company achieve financial success and increase the drive for expansion. Their Pittsburgh team with their customer service and training program are also valuable resources. They will be valuable id the company is able to use it to their advantage and implement it across all divisions. Also, their willingness to take strategic risks, and provide an overall focus on growth of the organization provides a competitive advantage. By taking risks, the company has demonstrated that it questions where the organization stands and what changes need to be made to sustain success (Hunger & Wheelen, 2011, p. 2).

    Read More

  • Mcdonalds Porters Five Forces Model

    1194 Words  | 3 Pages

    Analyse McDonalds using a well known model to assess the competitive position that it occupies within its industry

    Read More

  • Krispy Kreme Analysis

    1686 Words  | 4 Pages

    The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.

    Read More

  • Sonic Drive-In Restaurant

    1139 Words  | 3 Pages

    Customers buy when they feel it is necessary giving them the upper hand on the industry. Bargaining power of suppliers: In the quick- service restaurant, the suppliers vary. They really do not rely distributors as large restaurants do. Threat of new substitutes: The restaurant industry is segmented into many parts: full service restaurants ($120 billion); quick- service restaurants ($110 billion); away-from-home managed institutions, examples: food services for schools and hospitals ($21 billion); and other food industries ($106 billion). (Marshall Jones, 1999). Rivalry among competi...

    Read More

  • Swot Analysis For Rooms For Dessert

    886 Words  | 2 Pages

    There is a larger number and types of entrants in the market Fine Dining Restaurants-Casual Dining Restaurants-Quick- Service Restaurants. Landscape of primary location is also a threat; there is a lack of customer parking which could possibly result in lower numbers of customers. Climate may also affect the businesses in general, low peak season and bad weather can cause problems for the business market if bad weather is expected, customers are more reluctant to go outside if not necessary. Potential entrants and encroaching concepts are also a concern due to factors such as low consumer switching and brand not being well known. Cost is also a threat although the primary target market is higher-wage earners consumers with less income will not frequent Rooms for Dessert they will seek substitute

    Read More

  • McDonald's: Analyzing the Empire

    1945 Words  | 4 Pages

    In terms of the Fast Food Industry the competition is always expanding and changing as there are several types of cuisine that a company can capitalize on and offer in a fast food format. McDonald’s has competition from many angles vying for their market share, but for the sake of this project it’s relevant competition would be those competitors in the same segment of the fast food market, namely Burger King, Wendy’s and Jack in the Box.

    Read More

  • Use of Integrated Marketing Communications in the Fast Food Industry

    1698 Words  | 4 Pages

    ...ice meal option and the nutritional value of meal offered (Teutsch, 2003). For these reason, McDonald’s brand image and sales have been faced huge impacted. Therefore, McDonald’s uses new promotional strategy to deliver clear and consistency message- “healthy food” as well as reestablish its image through IMC. IMC strategy has become an effective and successful marketing model that been adopted as a standard and achieved business objectives (Herstein et al., 2008). Furthermore, IMC strategy potentially enhances the effectiveness of the firm's advantage, and also could positively influence brand image (Madhavaram et al., 2005). Consequently, this project is useful for marketers to better understand IMC concepts and making useful and available promotional strategies. Also, it will be benefit on McDonald’s now or in the future, or whether others specialist industry.

    Read More

More about Chipotle Inc: Rivalry among Existing Competitors

Open Document