Chipotle Swot Analysis Essay

SWOT Analysis SWOT is credited to Albert S Humphrey in the 1960s. SWOT is an analysis tool that takes into account internal and external issues and determines what may help the firm in accomplishing its objectives and what obstacles it must overcome (SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats, 2016). SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths are defined as “characteristics of the business that give it an advantage over others.” Weaknesses are defined as “characteristics that place the business or project at a disadvantage relative to others.” Opportunities are defined as “elements that the business could exploit to its advantage.” Threats are defined as “elements in the environment

In Chipotle restaurants, they use “low VOC paints, Energy-Star kitchen equipment, and light controls that adjust based on natural light level.” Examples of their environmentally friendly products include “bowls made of recycled newsprint, gift cards made with corn-based plastic, and napkins made from unbleached paper” (Vaccaro, 2009). Lastly, Chipotle offers online ordering and catering. Chipotle’s customers can easily order through their smartphone or computer and pick up their order at the closest store. Chipotle’s catering options are perfect for any party, event, or business meeting. Currently, catering orders are picked up in store, but Chipotle is looking into performing on the premises catering (Chipotle, 2016). Chipotle has a tremendous amount of strengths going for

They call it “Food with Integrity”. This idea sounds great and all but it can become very costly. Which will make the menu prices go up which could become a weakness. If they keep the prices low and keep getting high-end ingredients, this could damage their profit margins.
Although you can make a ton of different combinations in your order at chipotle, they really do not have a widespread menu. This makes it tough for families with picky eaters to come and have a meal. This is similar to most of the fast Mexican food industry. But with other fast food restaurants offering many different options on their menu, this could put chipotle in the back burner.
Another weakness is the lack of international growth. Chipotle has a little over 2,000 restaurants in the United States and Canada. Unfortunately they only have 17 international restaurants. This could be a major opportunity for them if they can find a way to reach more people in other countries. A possible reason for their slow growth is because of their lack of advertisement. Chipotle mainly count on word of mouth to get their name out there, and this might work in the states but will not on a global