Chipotle Swot Analysis Essay

Chipotle image is the premier place for fast high quality Mexican food. They have established a high level of competition for the industry. They have focused on food quality and safety in the supply chain. They have a good customer base that will continue to buy its products despite public perception of Chipotle. They have a great layout were the customer can choice the ingredients in the final products. This creates a great customer experience and low ticket times. Due to these factors, Chipotles strengths out weigh its weaknesses. The Porter Five Forces is a framework which outlines the competition within an industry. It analyzes the threat of new entry and substitutes, the bargaining power of consumers and suppliers, and the industry rivalry.

Chipotle has suppliers that can provide high quality ingredients for their products, for a great price. New entrants will face high cost of ingredients due to the difficulty of finding suppliers. Another factor that creates high entry barriers for new entrants, is the brand loyalty that chipotle has. Chipotle has gain a relationship with their customers, due to the chipotle’s mission and values. Although the threat of new entry is low, innovation can break the barrier of entry and can lower the Chipotles profitability. Innovation can lower cost in a company’s supply chain, which can result in a better product and better customer

Customers can often choice the place they want to eat, which include fine dinning restaurants, fast food, and eating at home. The customer has the power to change the public perception of chipotle. Recently, the current ratio has fallen along with Chipotle’s revenue due the health cases that the customer experienced. This has lowered the daily number of customers, and makes substitutes more viable. The high power of customer has shown to effect Chipotle and this threat can reduce the overall demand of Chipotle and the fast food