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WeaknessesProducts.The loss of customer trust due to the food borne illness history of the company. Although the major issues have been resolved in recent years the company is still in the process of regaining its customers trust. Additionally, despite the fact that the company has strong relationships with its supply chain partners it primarily relies on the services of a small number of farmers. This could spell disaster for a period if any of those farmers were hit with disaster or recession.Organization.Weaknesses of the company are days inventory is high comparative to competitors, research and development is below fast-growing players in the industry, they have very limited expansion beyond their core business, and they have a high attrition rate in their workforce. Days inventory is high compared to others in the market leading to the company having to raise more capital on the front end in order to invest. Performance.When it comes to research and development, Chipotle has not been able to keep up with the others in its industry even though it is spending more than the industry average. Another weakness is that they have limited expansion opportunities outside of core businesses, so although they have established themselves in their industry, they face challenges moving into
Running Head: Individual Case Study - Part 1 11other product segments with the culture that currently exists. Lastly, the high attrition rate in the workforce is much higher and they spend more compared to their competitors on the training anddeveloping of their employees.OpportunitiesPerformance.Opportunities for Chipotle focus on the elements that they can build upon but do not have internal control over. These would be an economic uptick and increase in customer spending, a lower inflation rate, new environmental policies, and new technology. Due to an increase in spending and an economic uptick, Chipotle has an opportunity to capture new customers and increase its market share. Due to a lower inflation rate in the economy, there is more stability in the market which means there is credit at lower interested rates for the consumers of Chipotle. Third, new opportunities in environmental sectors, creates a level playing field for all of the players of the industry and allows them to drive home its advantage in new technology and gain market share in the new product category. Lastly, their new technology provides an opportunity to differentiate pricing. It enables them to maintain their customers loyalty because of great service.Due to the limited number of restaurants Chipotle owns outside the United States they could leverage the opportunity to expand into more global markets booting their sales and likely their profits. Although often seen as a threat, the competition in the casual dining arena does provide an opportunity for Chipotle to improve its ambiance brand reputation and location options into areas that need more casual dining chains. Finally, with high turn over in the industry as a whole there is an opportunity for the company to take steps to retain its employees