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Swot Analysis Chipotle Mexican Grill

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Companies Overview
Chipotle Mexican Grill (CMG) is a chain of Mexican food restaurants. The restaurants provided the fast, great hand prepared good foods by using high quality ingredients. This idea and process are continued for more than 20 years. The first one was established in 1993 in Denver, Colorado by its founder, Steve Ells. At the beginning, Ells loaned $85,000.00 from his father. Now, the company has more than 1,900 restaurants across the United States, Canada, United Kingdom, Germany and France and more than 53,000 people (Yahoo Finance, 2015). In addition, Chipotle operates 11 Shop house Southeast Asian Kitchen restaurants and Pizzeria Locale franchise chains in the United States. Based on the solid foundations of “Food with integrity”
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Chipotle kept their menu simple, but still managed to provide over 65,000 customization options, and customer’s can choose to order online or through a mobile app. The company was incredible successful with recognitions from Wall Street Journal and Fast Company

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Chipotle does have some core competencies. They have five to be exact. The first one is serving a focused menu of burritos, tacos, burrito bowls, and salads. The second one is using high-quality raw ingredients and classic cooking methods to create great-tasting, reasonably price dishes that were ready to be served to customers minutes after they were ordered. The third one is creating an operationally efficient restaurant with an aesthetically pleasing and distinctive interior setting.

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Chipotle Burrito has 65,000 unique combinations with extraordinary ingredients. Chipotle is quick, simple, and enjoyable to make. Their experience for serving customers begins from start till the end of creating customers food. The company emphasizes on unique food culture by serving food made with quality ingredients from sustainable sources which is prepared by using latest pressure cookers (Chipotle strength) .

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is Steve Ells. Steve opened his first Chipotle restaurant in 1993, with the goal of showing that a fast food restaurant does not have to mean it has to be a “fast food” restaurant experience. Chipotle is headquartered in Denver, Colorado and has locations throughout the United States, Canada, England, France, and Germany (Forbes, 2015). There are about 53,000 employees in the United States, and more than 1,900 locations worldwide (Berfield, 2015). Chipotle hopes to continue to increase its market share and take more customers away from industry leaders such as McDonald’s by focusing on its “differentiated strategy, unique brand, and food philosophy” (Prentice,

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Chipotle’s competitors have a difficult time competing against or imitating this competency because the times on Chipotle’s menu are tested and proven. Competitors don’t have the time or ability to test this concept or perfect their menu items. Chipotle on the other hand has been able to apply this limited menu style to the other ventures such as their two Shop House locations in Washington D.C. Another core competency, shown in Figure 1, is their dedication to high quality ingredients such as the organic cultivation of produce and naturally raised meat. Chipotle meets high customer expectations with their ‘Food with Integrity’ campaign.

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Chipotle has a major opportunity to increase its number of customers and most importantly its profits. Unfortunately, even though this fast food franchise has the capabilities of fulfilling the rise in demand, they still have to take into consideration all of the factors that can still hurt the company. As listed above in the analysis, Chipotle has to continue to improve their food and services to continue to bring in more customers. Their opportunity can also become a weakness in the near or far future, the current trend is to eat healthy, consumers may get over this fad and may not worry as much on the amount of calories they consume.

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The company needs to concentrate on developing advertising and promotion campaigns for its proposed new restaurants: Chipotle has enjoyed a rapid growth in the recent years since it went public. In 2006 reports indicate the company had approximately 510 restaurants, but has quadrupled now. As a result, the firm has enjoyed measurable annual revenue and growth (Chipotle Mexican Grill, Inc.: 2015). In 2015 the company suffered food safety issues which affected the company revenues but was still able to post 10% revenue and 7% in growth (Chipotle Mexican Grill, Inc.: 2015). Therefore, despite the food issues setback, the company has immense potential to continue expanding into other states (Chipotle Mexican Grill, Inc.: 2015).

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Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly. The Chipotle Mexican Grill experience is an introduction to fast food 2.0, a new version of chain eateries that focus on quick, fresh, and hip food for us young people. Focusing on fresh ingredients, Chipotle’s ingredients are organic and their meat is not contaminated with chemicals, unlike most other fast food chains. When I step up to the counter, I notice a refrigerator filled with drinks. With a full liquor license, Chipotle also

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Expanding into new markets such as Southeast Asian Kitchen gives Chipotle a way to increase market share of fast-casual dining outside of the original “Mexican” food market. More specifically, Chipotle seems to be a strength leader of its competition by at least 1.0 weighted score. Key success factors include quick/efficient production, geographic coverage, customer service, brand awareness/reputation, and cost containment. One reason for the leadership advantage is Chipotle’s quick and efficient production while maintaining high quality This is something that competitors have a hard time imitating. Its small lack in geographic coverage and market scope are still

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" This shows that, Chipotle success comes from the use of classic cooking, distinctive food design, and fresh ingredients. Furthermore, Chipotle brought back the Mexican food to the American customers so that can people experience with different food that is not typical of their culture. Moreover, "Today, the chain boasts more than 1,550 units and holds a market capitalization of nearly $16.7 billion... Chipotle is not only the undisputed leader in the growing fast-casual space, but also an increasingly emulated brand (Jennings, L).

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Chipotle image is the premier place for fast high quality Mexican food. They have established a high level of competition for the industry. They have focused on food quality and safety in the supply chain. They have a good customer base that will continue to buy its products despite public perception of Chipotle. They have a great layout were the customer can choice the ingredients in the final products.

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The food industry has always been and will be a competitive market for businesses to work in. There are four types of restaurants that Chipotle must notice as competition in their market. There are fast service restaurants such as Taco Bell relying on fast service and cheap prices as their main advantage. Casual dining chains are the next form of competition, giving customers the option of having table service at a higher price. In every area Chipotle operates, there are also locally owned restaurants that supply a more personal and long lasting relationship with their customers.

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Chipotle Mexican Grill, Inc. operates in a services sector and restaurants industry. It competes with fast, casual and dining restaurants in the industry based on price, quality, taste, location, services they offer, customer experience, brand reputation, interior, operating costs, management, diverse menu, effective marketing, facilities and safety of food. Chipotle has a lot of competitors in this segment. However, the company’s primary (direct) competitors are the restaurants that produce the goods and services that are very similar to Chipotle’s goods and services, specifically the ones that serve Mexican

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Chipotle Mexican Grill Company was established in 1993 by Steve Ells, based in Denver, Colorado. Its mission utilizing naturally-grown components, and oblige a more naturally elevated meat than any other restaurant series. Chipotle is a popular quick-service restaurant chain. It possesses and runs greater than 2,000 quick-casual eating places favorite for their burritos and other Mexican foodstuff dishes. With extras, the company’s menu offers more than 65,000 choices (Robert, 2010, pp. 54).

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Chipotle opened its first casual fast food restaurant in Denver restaurant in 1993, Chipotle Mexican Grill was founded by Steve Ells who at the time was a graduate at culinary Institute of America. Chipotle Mexican Grill offers a menu of a variety of food items which mostly are burritos and tacos, Chipotle is located in many parts of the world, not only is Chipotle doing business in the US, but also in Canada and UK, how Chipotle does and runs its business is slightly different from what customers are used to and expect regular fast food restaurants. Chipotle has managed and maintained the high-quality standards and also continue to improve. Chipotle success is mainly by following these tools in their business, what kind of menu, high quality

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