Abut Product Identification and SWOT Analysis

Company Description and Services Offered

Chipotle Mexican Grill is a restaurant company based in America, Canada, France, United Kingdom and Germany (Chipotle Mexican Grill, 2017). The company has managed to open more than 2000 fast food outlets globally making it one of the most favorite restaurants; they are famous for their salads, mission-style burritos, and tacos, which are made from local and fresh ingredients. Luckily, customers get to choose the specific ingredients they prefer in their snacks thus offering them complete control over the food purchased (Chipotle Mexican Grill, 2017). All Chipotle locations are open for all meals from morning to late night; this company also provides culinary services to individuals interested to learn how to make their products at home or for professional purposes.

A Brief History

Steve Ells, the founder and the chairperson of Chipotle started the first outlets in 1993. Its headquarters is in Colorado in America; the primary objective was to portray that food served within a few a minutes was not necessarily the unhealthy fast food most people consume (Chipotle Mexican Grill, 2017). Their concept was to use raw ingredients, classic cookery practices, and unique interior design to introduce the world of exquisite dining to the realm of quick-service eateries. Over the years, the company has been devoted to discovering the best food constituents available from farmers, animals and the surrounding that remains fundamental in their commitment to “Food with Integrity,” which is the organization’s slogan.

Competitors

Key competitors for Chipotle include Taco Bell Corporations, Qdoba Mexican Grill, and California Tortilla. These companies are always stacking up against Chipotle based on their sales, market control, growth, and profitability mainly because they sell similar products (Comoletti, 2017). However, Chipotle has managed to maintain fast and casual services especially for the takeaways and the dine-in customers. The company further retains its uniqueness compared to its opponents because their growth is not dependent on franchising as it is the case with the many fast food peers.

SWOT Analysis

Since its foundation, Chipotle is widely known for its solid brand reputation where customers are assured of quality food and services. As a result, it has experienced rapid growth since its stock went public in 2006; in fact, the chairperson reports positive earnings and revenues annually since its initial public offering (IPO) (Publishing, 2017). Regardless of disastrous food safety problems the company experienced in 2015, they still managed to achieve earnings and revenue of 7% and 10% respectively. Another competitive advantage is quality ingredients that have retained customers; in modern times, people are vigilant about their diet and time thus a fast food restaurant that offers healthy food in a short span of time fits the current living style.

The weakness associated with Chipotle is the high prices of their food owing to the natural components used. Notably, organic resources are not readily available because most farmers use chemical fertilizers to farm; this makes antibiotic-free materials expensive (Publishing, 2017). Most customers complain that their menu is limited due to their concentration on burritos and tacos.

Available opportunities include an introduction of new products in their menu and expanding their existent products to increase sales. New recipes should mainly focus on other Mexican offers that are not available in areas surrounding their dinners or non-Mexican foods, which would then be sold in their ”ShopHouse Southeast Asian Kitchen” and ”Pizzeria Locale (Publishing, 2017).” Chipotle further has a chance to expand its locations to other parts of the world apart from America where it is concentrated and spread to the countries in which it can have a notable expansion and growth. The representation in Canada and Europe is not enough to cover international markets hence untapped potential that could reach a vast area of interested consumers.

Possible threats include the competition emerging from similar food companies in the region. The fast food industry today is competitive in regards to service, quality, and convenience; unfortunately, Chipotle faces a severe risk to lose it image due to the E. coli bacteria outbreak in a few of its restaurants in late 2015 (Publishing, 2017). Consequently, the management requires additional food safety ideas to help them regain their lost glory and customers.

Conclusion

In my opinion, Chipotle has a business opportunity to supplement its menu. Notably, there are no refreshment drinks to accompany their burritos hence most customers end up purchasing drinks from other fast food joints to complete their breakfast, lunch or dinner. Since one of the Chipotle business principles is the people’s health and ensuring provision of quality products, the Mexican citrus drinks such as Sidral Mundet Green and Jarritos Lime soda are a better option for drinks compared to the modern sodas which have high calories. Therefore, a marketing plan is well known for its necessity for such a development to promote these beverages and notify their customers about the new improvements in the menu. Ultimately, healthy products have the power to attract consumers who are continually cautious of their calories and chemical intake to lead healthy lives.

References

Chipotle Mexican Grill. (2017). Chipotle.com. Retrieved 6 September 2017, from https://www.chipotle.com/

Comoletti, J. (2017). America’s Favorite Fast Food Chains. Retrieved from http://www.businessinsider.com/chipotlemexicangrill­customer­satisfaction­2014­6

Publishing, V. (2017). SWOT Analysis: Chipotle Mexican Grill, Inc... Valueline.com. Retrieved 6 September 2017, from http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Chipotle_Mexican_Grill,_Inc_.aspx#.Wa-tj9QjG00