Weaknesses while one of chipotles business strategy

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moved into a supporting role while Brian Niccol became CEO of Chipotle. Weaknesses While one of Chipotle’s business strategy strengths is seen through their close-knit relationship with a limited number of suppliers, it can also be a major weakness. Limited suppliers could be detrimental should Chipotle’s suppliers face another E. coli outbreak among their produce selection. Another overlooked weakness is within the ingredients used in Chipotle’s food ingredients—sodium. Chipotle enables its customers to build their own Tex- Mex meals which can be fresh and healthy depending on what they select. However, even a careful selection of ingredients can contain a high volume of sodium, which can have harmful effects on individuals with high blood pressure (Cassetty, 2018). Finally, while Chipotle’s food menu is fairly simplistic compared to other big name fast food restaurants, the food selection only provides customers the option between several Tex-Mex dishes. Casual restaurants such as Panera Bread may receive more customers due to its diverse food selection. Opportunities Chipotle boasts upwards of 2,500 locations. Most of its geographical footprint is within the United States. Only 39 of Chipotle restaurants operate in the international department (Chipotle, 2019). This presents an opportunity across international borders for Chipotle to expand. Additionally, Chipotle has done well to increase its digital market presence, with 18 percent of Chipotle’s total sales coming from digital orders (Chipotle, 2019). Chipotle has an
Running head: INDIVIDUAL CASE STUDY PART 1 opportunity to increase its overall sales by promoting its smart app capabilities, which can entice customers who are convenience oriented. Another opportunity for Chipotle to capitalize on comes from within its company—its employees. Chipotle can gain a competitive advantage over other market competitors by investing more in the training and retraining of high performing employees. Subsequently, this could increase employee retention and satisfaction among its workers. Adding to the concept of convenience, Chipotle has started to expand its strategy to provide drive through services for customers. However, the drive thru option is only available to customers through its mobile app, which aims to increase smart app usage while providing customers more convenience by providing a scheduled pickup time (Maze, 2019). Lastly, Chipotle’s partnership with DoorDash has provided yet another convenient option for customers to mobile order and have their food delivered without ever leaving their home (McCowan, 2018). Threats While the worst of the negative effects surrounding Chipotle’s E. coli incident may seem to have blown over, customers may still be pessimistic about another E. coli outbreak across Chipotle’s restaurants. As previously stated, there is no way that Chipotle or any food service restaurant for that matter can fully prevent the occurrence of foodborne illness. Chipotle continues to address this as a top priority of concern in their 2019 Annual Report. The E. coli incident hampered the supply chain of pork across several Chipotle locations (Berfield, 2015).

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