Chipotle case analysis Study Example | Topics and Well Written Essays - 500 words

Chipotle analysis - Case Study Example The company has also been able to maintain profit margins of about 36% as indicated by the chart below(Fundable, n.d). CMG’s business level strategy includes cost leadership and product differentiation. In line with a dynamic corporate management under the leadership of Steve Ells, all Chipotle restaurants are company owned rather than franchised. Chipotle accepts fax orders coupled with the use of e-commerce from their website, as well as, an iPhone app allowing users to locate nearby restaurants, place orders, and prepay with their gift or credit card. These strategies offer dynamism, convenience, and efficiency to the customers, large sales, and profits turnover (Fundable, n.d.). First, Chipotle’s â€Å"food with integrity† mantra has been consistent throughout the years giving new and old customers something to identify with. Second, supporting local farmers, as well as, protecting animals serve as the key public relation resources. Well-established supply chains reduce logistics even during pick hours while focus on fresh and naturally raised ingredients is a parallel to most of its competitors (Fundable, n.d.). Yes. If CMG stays on the disciplined growth lane as it is, it can still maintain a debt-free balance sheet. Moreover, keeping away from mergers or franchising might allow it to keep a tight grip on the investments, equity, as well as, returns to investment in line with its business strategies. The greatest challenge is competition. For example, from Panera Bread Company. Another is globalization. With the surge in globalization, restaurants are sprouting up, it might lose customers, and thus, revenues might decrease (Fundable, n.d.). It has to be innovative; market oriented, and maintain a people-first culture. This way, it will regain control of the micro and macro-economic factors. It also has to invest more on advertising, as well as, an all-inclusive architecture. For instance, CMG allows the customers to see the food being prepared.