Chipotle Essay

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Rebecca McCracken's Site Professional Portfolio Resume Philosophy Statements Artifacts Research Paper Certifications Memberships Conferences BUS 446: Comprehensive Case Study 1. What are the dominant characteristics of the industry? Chipotle is in the fast casual dining industry or restaurant industry. The market capitalization of this industry, according to Yahoo Finance, is $3,375 billion. Competition is very intense in this industry since different dining options are all over the place. Because of this there is no one company that has the market cornered. The growth rate of this industry is high with new restaurants popping up all over the place all the time. The biggest characteristic of this industry is the degree of product differentiation. Each restaurant tries to make themselves different from their competitors by the products that they offer. Products range from American to Mexican to Chinese to Italian and more. There is also differentiation amongst the type of restaurant they are. Some are considered fast-food where customers order and receive their food within a few minutes, and some are sit-down where customers order what they want and sit and wait for the food to come to them. Another major characteristic is the supply/demand conditions. The cost of the products depends a lot their suppliers. Higher quality food costs more which then means those restaurants cost more to the customer. If the restaurant can find high quality products at a cheaper price then they can make more money. 2. What is competition like in the industry? Search Rebecca McCracken's Site Search Recent Comments Archives Categories No categories Meta Log in Entries RSS Comments RSS WordPress.org Suppliers are weak – restaurants determine the price, not the suppliers. Unique supply chains give it a challenge when they make their own food or buy organic, like Chipotle.
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