What Is Chipotle's Differentiation Strategy

Chipotle is extremely vulnerable to supply shortages. Considering the fact that their brand is built on the quality of its ingredients this is a problem. Their brand, cost premiums and a large component of their value proposition is built on and contingent on providing a product requiring inputs that the do not control ( Chipotle Mexican Grill, Inc. SWOT Analysis) . Irregularities in the work

Sondra Simpson’s article “Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and Dangerous?” alludes to portraying a controversy involving the popular Mexican fast food chain Chipotle and the agricultural industry, but it reads more as a testament to the restaurant’s environmental and marketing achievements. The introductory paragraphs lead us right into a brief explanation of the issue at hand, as well as Chipotle’s intentions and opposition. Simpson hooks her readers with inciting blog titles illustrating the overall feelings of Chipotle’s offended adversaries, such as, “Boycott Chipotle: My Farm is Not Dangerous” and “Chipotle Unnecessarily Tears Down Agriculture to Build a Brand” (qtd by Simpson p 38). These blog posts describe the agricultural industry’s reaction to Chipotle’s latest attempt at spreading their corporate message through a series of webisodes titled “Farmed and Dangerous.”

Chipotle and Qdoba each have their similarities and differences. Dating back to the 1990s, Chipotle and Qdoba were both created within a few years of each other. Each restaurant classifies itself as a “Mexican grill” with an assembly line style of ordering. Though Chipotle and Qdoba have the same restaurant set up, they differ in price, product choices, and advertising. The prices between Chipotle’s and Qdoba’s meals differ.

In the near past, chipotle was owned by Mcdonald's, suddenly their CEO decided to separate from them due to the bad quality of the mcdonald's food industry. Chipotle over the years tried to make their food as the most fresh and best when it comes to the quality of the food and they have been succeeding in their plans. After finishing classes that day, I didnt have much time for eating lunch so my options were not a lot, which is why I chose chipotle. I had a couple of friends with me, and we ordered several orders to share. To try the best thing they had.

However our participants didn’t feel this way about chipotle as one mentioned “it is not overrated because the food is good” 
2. Young people today are looking for a quick and easy meal but demand the quality be up to par. This is why they are drawn to Chipotle over other fast-food competitors. When asked what came to mind when they heard the word Chipotle one person mentioned “fresh” I think this is valuable because it show past advertising has worked amongst the age group we were trying to enhance. By a show of hand we discussed dating habits and it was very clear young people are eating out a lot.

Since news about the Chipotle food poisoning broke, a lot of people became more concerned about the food they eat. The public began to realize that even renowned brands and giant food chains can also be the breeding ground for the next food related fiasco in town. Because of the two outbreaks of Norovirus (a virus that causes diarrhea, vomiting, body pains and fever among others) in Simi Valley and Boston, two E. coli outbreaks, and one Salmonella outbreak in Minnesota, Chipotle is now facing rapid drops in their food revenue, a decline in their stock value, a criminal investigation and a lawsuit.

Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.

Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.

Who hasn’t heard about Chipotle yet? Chipotle is modern day fast food business. Chipotle thrives on serving non-GMO and healthy foods. Chipotles profits are estimated over $200 million. There are over 2,000 Chipotle franchises across America in 2015.

Chick-Fil-A vs Chipotle: Which one is better? Many people lately have been raving over Chipotle, and Chick Fil-a lately. I have always thought to myself what is so great about these two food chains. Many people like Chipotle, and then there a a lot of people that love Chick-Fil-A.

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

Another form of media is their innovative media presence where they have depicted short videos that show the bad effects of other food suppliers. They use innovative media through television and YouTube to show that their sustainable sources of food are the best choice. Chipotle also uses print on their napkins, wrappers and drink cups to appeal to their market. Chipotle is also very well known for using promotions as a marketing message as well (Zureikat, 2014). Chipotle also uses public relation events like their Cultivate festival to support their market message to consumers.

With its mission statement of “Food with Integrity” Chipotle has seen success over the last decade. But with the increase of raw material input increasing, Competitors using pricing strategy to compete for its market share and the economic Chipotle is facing some though decision on if it should continue with its “Food with Integrity” which it can ill afford in these difficult times. In this paper, we will try address ways in which Chipotle can reposition its efforts to focus more on this unique offering without affecting their “Food with Integrity” Concept. By doing so, we believe that it can capture the important and growing segment of customers who are the health-conscious, organic-friendly consumer.

If a differentiation strategy is successfully implemented the firm will be able to do one of the following: command a premium price for its products, increase unit sales, and/or gain buyer loyalty to its brand. Starbucks has some of the highest prices for the type of products they offer and people tend to be extremely loyal to whatever coffee they are used to purchasing, because they trust the

1. Market Penetration requires increasing the existing product sales in the existing market. The main strategic objective is to obtain more market shares or get the position of market leader. As an example: Aldi followed the market penetration strategy by opening thousands of stores across UK offering the same products. 2.