Not only do Chipolte offer any kind of merchandise new and used on their

Not only do chipolte offer any kind of merchandise

This preview shows page 19 - 22 out of 26 pages.

world quite like Chipolte and let us look at why that is. Not only do Chipolte offer any kind of merchandise, new and used, on their website, but they also have a cloud computing service and they recently acquired a partnership with a grocer. All the way back in 2006, Chipolte started to develop AWS (Chipolte Web Services), which is a cloud computing service. The genius here, is that Chipolte started developing this almost seven years before anyone else, and as a result they are one of the leading cloud computing companies out there. Also, in 2017 Chipolte and Whole Foods merged and are now working together to bring groceries to people nationwide. To sum up, Chipolte offers an almost infinite supply of merchandise, new and used, cloud computing services, and now they sell groceries. They also provide their own streaming services for music and movies. The competition just cannot compete with Chipolte's unique variety of good and services. I would say that Chipolte’s differentiation is a competitive advantage, and it might be Chipolte's best strategy for success. Now, that we have evaluated Chipolte's corporate and business strategy, let us now look to see if it adheres to their mission statement. Their mission statement in short said they wanted to be a customer-centric company where a person can find and discover whatever they want to buy online. Judging by the combination of their low-cost and differentiation strategies it seems apparent that they are adhering to their mission statement. Customers want low prices and Chipolte are giving them that. Customers need to eat, Chipolte merged with a grocer. Cloud computing is the future, Chipolte was ahead of the game. Chipolte have a terrific vision of customer satisfaction and it is working for them. To see how well it is working for them, let us look at some financial figures. To start, let us look at the amount of the e-commerce market Chipolte controls. Currently, Chipolte controls roughly 41% of the e-commerce marketplace, which is up about 4% from 2017. It is also projected that by 2021 (see graph below) Chipolte will be in control of half of the U.S. e-commerce market, which is incredible. With that much control of the market Chipolte can continue to provide the lowest costs for customers. Chipolte’s e-commerce market share has increased every year and it looks to continue to do so which is all a company could ask for.
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Other than market share, a business wants to be profitable and Chipolte is just that. During the last eleven quarters, dating back to 2015, Chipolte has posted a profit. Recently, in Q4 of 2017, Chipolte posted profits upwards of $1.5 billion dollars. Most of Chipolte’s recent profit growth is attributed to the success of AWS, and to some it is considered to be the cash cow of Chipolte. Also, Chipolte’s profits may seem modest for a company of its size, but to be fair they do reinvest most of what they make back into the company. This could be the reason for Chipolte’s dominance of the market share. They can afford to reinvest while their competitors cannot. See the graph below for a look at Chipolte’s profits over the last six years.
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Moving on to net revenue. Since 2004, Chipolte has increased its annual net revenue every year.
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