Impvantages Of Chipotle's Competitive Advantage?

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Companies like Chipotle require raw material to make the products they offer to their customers. This is where supplier power is created, if a company works with multiple suppliers then their suppliers have little or no power this is because it would be unexpansive to switch suppliers. When a company works with limited suppliers they have a higher supplier power because of how expensive it would cost them to switch supplier at this point the supplier also has the power to raise prices to capture some of the industry’s profits. Most restaurants get their supplies from different suppliers so for the most part supplier power is week within the industry, unless you are chipotle. Chipotle uses organic produce and free-range and antibiotic-free…show more content…
The ways you create this competitive advantage within the restaurant industry are changing prices, improving existing products and making them different, thinking of and using creatively channels for distribution and working with suppliers to exploit their relationship. Chipotle in particular creates this competitive advantage by using organic produce as well as free-range cattle, they are creating and experience for their customers, they can pride themselves in saying that they do not support pesticides. In this century where the trend is healthy living and foods without gmo’s and organic Chipotle is taking advantage of these trend and catering to exactly what their customers want their for creating customer loyalty. Rivalry in this market can increase because a large number of the restaurants are competing for the same customers and the same share of the market. To compete among each other restaurants like Chipotle put into place promotions and new creations. For example about a couple of week ago Chipotle had a promotion through Facebook, in these promotion they ask customers to sign up to the promotion through Facebook and then they were sent an email with a coupon for a free burrito. This promotion work in favor of Chipotle because it creates customer loyalty, because the customer knows that they can get free products by signing up to Chipotles promotions they are most likely to sign

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