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Case Study of Chipotle

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A case study of Chipotle Mexican Grill

Problem Identification
Chipotle Mexican Grill (CMG) is an American restaurant chain founded in 1993, currently has more than 1000 locations throughout the United States, United Kingdom and Canada. The company is a New York Stock Exchange listing Corporation announced US$214 million in net income in 2011. Despite its success, Chipotle does have key problems that they have to face and deal with. If they would like to continue to use quality and sustainably sourced inputs as differentiators to justify a higher priced menu and keep their frequent customers, fighting competition could be the main challenge. The article told us that the competition is mainly from Taco Bell and Qdoba, especially a new menu called “ Cantina Bell” generated by Taco Bell, which offers very similar food like Chipotle, and the price is much lower. So to Chipotle, finding out how to identify ways to make the company stand out in different competition and keep the company in maintaining profitability is the most important thing.
Economic depression is another concern, because under this circumstance, people will cut down their spending on eating outside or best to keep the current level. In other words, if Chipotle’s food price is too much higher or they consider raising its menu price due to the higher food costs, perhaps the customers will not buy it, but turn around to buy a similar food from another place with a lower price.

Situation Analysis
  * Strengths.
  1. CMG is already a recognized brand in the United States, United Kingdom and Canada.
  2. They use naturally raised meat and organic ingredients for the food, and the ingredients are from more sustainable sources. In other words, they are very environmentally friendly.
  3. Their brand image is positive and the loyalty programs are helping to have closer and better communication with the most loyal and passionate customers, such as Farm Team.
  4. Instead of using...

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