Chipotle’s competitors can be split into three broad strategic groups – international fast-food chains, local casual fast-food chains and potential future market entrants and other competitors. In order to better prepare to enter the Hong Kong market, Chipotle must understand the strategies of its competitors and their potential reaction to the entry of Chipotle into Hong Kong. With that in mind, Chipotle can then formulate ways and strategies to react to the actions of its competitors. Analyses of selected competitors from each strategic group are as follows:
Strategic group 1 – international fast-food chain in Hong Kong:
McDonalds: McDonalds is fast food chain serving western style meals. Since entering the Hong Kong market in 1975, McDonalds has been a dominant force in the fast food industry. Today, with 225 restaurants, McDonalds is the largest international fast food brand presence in Hong Kong. Hence Chipotle should be concerned about potential moves McDonalds will take in face of Chipotle’s entry into Hong Kong.
McDonalds in Hong Kong understands the price sensitiveness of the Hong Kong consumers and actively engage in discount campaigns such as student discount and Extra Value Meal deals. Such discount campaigns may be employed upon Chipotle’s market entry. On top of that McDonalds may introduce Mexican style dishes, such as the Chicken Fold-over, in a bid to prevent its customers from switching to Chipotle. Lastly, alongside each Happy Meal and Extra Value Meals, McDonalds offers a complimentary free gift. These gifts ranges from plush toys to collectibles and is usually associated to the latest movie or whatever that is popular at that time. McDonalds will aim to use such a strategy to entice customers to choose McDonalds over Chipotle.
Strategic group 2 – Local fast-food chain:
Café de coral: Café de Coral is one of the leading Hong Kong style café chains It has widespread coverage of the Hong Kong market, with 100 fast...