Chipotle Market Essay

Chipotle was established in 1993 with the idea to demonstrate that close intellectual nourishment does not have to list with the typical fast- fodder experience. Chipotles recess commercialize prefers high quality ingredients thats honorable, tastes good, and uses classic cooking methods with bizarre interior design. Chipotle has changed the fast solid food market and uses the petty and sweet delegacy statement to forever provide food with integrity. The companys vision statement is to change the way people think round and eat fast food and its legation statement is to provide food for thought with Integrity (Chipotle, 2014). The vision statement has been successful in driving to its nominal head door where its not unusual to see a line of business leading to the assembly kitchen within an hour of closing. The mission statement is short but the company constantly works to ensure the quality of the food is consistent and fresh and stocks from reliable vendors. The strat egy Chipotle uses in its vision and mission statement is to ensure they are intertwined.Chipotle exemplifies Michael E. Porters proposal that managers john make the organization more profitable and little vulnerable by using a specialism strategy. Chipotle seeks to distinguish its food from altogether others in the industry. It uses the local grown and sustainable products differentiation and its ability to larn food that a good price and produces in high hatful that allows the company to make a handsome profit. Even while freshly fast casual companies such as Noodles and company have come along, no national chains have come close to creating a threat in the type of food that Chipotle makes. One competitive payoff the company has is that the food it serves caters to health consciousness in consumers. This compliance to the healthy food trend comes from shifted consumer sentiment away from food that facilitates obesity. Another competitive advantage is that Chipotle sits som ewhere between fast food and casual dining.This is referred to in the article as fast casual dining. Chipotle offers the quality of food that galore(postnominal) full-service eating places serve and pair it with the speed and convenience of fast food. Chipotle prides itself in doing a few things really well. Chipotle only uses ingredients sourced from local suppliers. It is the only national restaurant that has a significant commitment to using local produce on a large scale. All of Chipotles ingredients come from within a 350 mile radius of the restaurant where it will be served. This local food supply provides a competitive advantage in the cheek and reliableness of theingredients it uses. Chipotle as well as works with local farmers to ensure they use sustainable operations. This sustainable operation in turn allows Chipotle to gain efficiency and ultimately violate prices. Chipotles marketing strategy focuses on a narrow market segment through use of a differentiation strat egy.This focused differentiation strategys uses the companys commitment to providing organic ingredients raised with respect for the animals, the environment and the farmers. This resonates to a large segment of the population who necessitate to deal with companies that stress sustainability. This ultimately contributes to exceptional taste, wholesome nutrition and grand value. In order for Chipotle to implement the strategy, consistent relationships with local suppliers is paramount. The assumption is that the less distance the food has to travel, the better. This is a proceeds to all involved. The company benefits with existence known by the market it serves as serving the local community. The suppliers benefit in that it can deal with a reliable and consistent ally for supplying the food. The local community benefits by improved economy and comme il faut paying jobs.The importance that Chipotle strategy has in industry is that it is a peachy example of Dafts organizational goals that states The best strategies come from organized analysis of organizational strengths and weaknesses. Chipotle does not have a desire to delight all customers with every taste. While the average price of a Chipotle burrito is more or less $7, this is a similar price point as most food places, the company has a relatively narrow customer base of those who neediness fast casual Mexican food. This focus allows the company to reduce the ingredients and scroll needed. This allows the company to spend more time creating relationships with local supplies to ensure the freshness and integrity of the ingredients.Another thing Managers can learn from the Chipotle model is that of boilersuit Performance. This is that the performance is expressed in terms of net income, win per share, and beget on investment. Chipotles stock price has increased 600% in the quondam(prenominal) five years. So while increasing the number of stores in the system, the company has also increased the sales per each store while also improving net income. This in turn follows in theequation for earnings per share.ReferencesDaft, R. (2013). Organization theory & design (11th ed.). Mason, OH South-Western, Cengage Learning. Article Linkhttps//docs.google.com/document/d/1pfdTX89Abt8on2NowLB-KY2wSgcxCgDKvaPAsa56dwI/preview?markAsViewed=false