Chipotle: Integrated Case Analysis

External Environment

Competitors

Competitor Environment

Internal Strategy

Industry Environment

Demographics

- Well educated young adults

- Upper-Middle class

- Value healthy eating

Economics: Higher quality food at higher price point.

Political Environment: Following FDA guidelines...

not too much of a concern since Chipotle serves local, fresh, often organic foods.

Sociocultural Environment: going GREEN

General Environment

Stakeholders

Technological Enviro:

- Online ordering

- Faster, better appliances

International Environment

Porters five forces model

Threat to entry:

Moderate - Always chance of new entry

power of suppliers:

Moderate - Fewer options when looking for local, organic ingrediants with their standard of quality .

power of buyers:

Moderate - Always have choice to eat elsewhere.

Threat of substitutes:

High - Customers always have option to dine at home.

rivalry:

High - Many other options in the market.

[Qdoba, Salsarita's, Moe's, local Mexican]

While Chipotle takes the healthy approach, they don't serve Queso.

Capabilities

Resources

Resources

Capabilities

Mission: fresh food & quality ingredient

"Food for Thought" Program

Capital Market

Product Market

• Financial (Investors)
• ShopHouse Southeast Asian Kitchen & Pizzaria Locale
• Local Farmers
• Gaining local, sustainable, & fresh ingredients help reputational resources
• Partnerships

Ability to expand rapidly

Technological Savvy

Marketing Program

Core Competencies

Core Competencies

Non-substitutable

Sustainability Concerns

Higher Quality

Brand Loyalty

1st Movers

Target Customers:

Well-educated, 18-34 years old with at least a Bachelor's Degree

Upper-middle class, with an average income of $75,000 - $149,000

Families with career-driven women that do not have time to cook, but want a healthy option

Cooking from Scratch

Costly to Imitate

Shareholders

Assembly Line

Impacts

Recommendations

• Suppliers & Sourcing (i.e. how to raise their meat & produce their produce)
• More capital for Chipotle
• Farm-to-table, fast, casual dining
• "Food with Integrity"

Alternative Lines in Cuisines

Diversify the

Market to Older Generations

Use more traditional marketing than just word-of mouth

Increase Marketing Abroad

Background

VS.

Corporate Level Strategy

Founded in 1993 by Steve Ells

Single Level Diversification Strategy

Largest investor by 2001

Value Neutral Diversification

Jan. 2006 made initial IPO with 100% increase stock prices

International Strategy

1st international location: London

Competitors

17 international Chipotles

Plans to open 4 more

Global International Strategy

Locations

Chipotle's Headquarters in Denver is in charge of all initiatives abroad and in the United States.

Business Level Strategy

Market Segmentation

Core Competencies

fast service, healthy food, unique

Differentiation Strategy

Integrated Case Analysis

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