What Is Chipotle's Differentiation Strategy

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Since Chipotle has determined the attractiveness of the industry, the restaurant formulates a strategy in view of Porter’s three generic strategies. In my assessment, Chipotle falls under the differentiation strategies. The elements that applies to differentiation strategies is a broad market and high cost. From their business philosophy that features “Food with Integrity” competes by offering a broad range of differentiation products at high prices. As a frequent customer I generally do not mind spending a little extra money on natural meats and fresh vegetables since I know their purpose is to know where all their sources are coming from and how it is maintained. They have a special pride to make sure the food is flavorful as possible and …show more content…

The root of the problem was the reliability of suppliers to deliver parts and ingredients chains. The lack of transparency and accountability across the supply chain, it was as difficult to monitor its suppliers in real time. It is not just Chipotle; many other corporations are concerned with this issue and have explored to find ways to fix the solution. The impact and accessibility that embraces the core drivers of the information age which are facts, information, business intelligence and knowledge are used at its prime and beneficial for companies such as Chipotle to resolve the problem. The information technology that corporation such as Chipotle are looking into is called Blockchain technology. The core system of blockchain technology is supported by bitcoin; computers of separately owned centers follow a cryptographic protocol to constantly validate updates to commonly shared ledger. What this means for restaurants like Chipotle, using a blockchain to transfers title and record permission and activity logs so as to track the flow of goods and services between business and across the borders. The purpose of this distributed system is to control the institutions that are not aligned with standardizes regulations and …show more content…

The advantages as I mentioned earlier that a single company does not have control. The distributed system projects any problems of disclosures and accountability between the employees and the institutions whose interest is not aligned with their job tasks. This basically provides and exposes information in real time and removes errors with another’s internal records. This provides members of the network a tool to visible observe and track an activity along the supply chain. For instance, Chipotle could see in real time whether a properly credentialed person in a facility owed by one of its beef suppliers is carrying out appropriate sterilization and disinfection procedures. The disadvantage of the blockchain technology lies in the development and governance. A great deal of companies seek to protect their data and information from disclosing their market share and profits whereas public blockchain data is pulled from commercial and production activity would be cryptographically recorded in open ledgers. In addition to that we have the underling laws. For example, laws and regulation that monitors the commercial codes that govern the rights of ownership and possession under specific

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