Introduction.
Chipotle Mexican grill is an American owned firm which has been in operation for more than two decades. Its main products is tacos and burritos and it is listed on the stock exchange (Fedenia & Hirschey 2009).
Competitive advantage
A competitive advantage can be described as condition or a factor that enables an organization to offer real or perceived value better than its competitors. (Porter 2008) The first major strength is its product differentiation, the food chain focuses on organic foods by ensuring that its meat is naturally raised and the ingredients are organic. This is in line with current trends where customers are more aware and advocating for healthy foods.
The second major competitive advantage is …show more content…
This sometimes forces the firm to sometimes source genetically modified foods in order to offset the deficit. This is a direct threat to the ethical setting of the brand.
Factors affecting Chipotle Mexican Grill
The growing concern for healthy food is an opportunity to the food chain. They have successfully exploited this opportunity and positioned themselves as market leaders. This niche is futuristic and is bound to continue expanding and this to them is a great opportunity.
The increasing global food prices food prices possess a major threat. This increase in food prices sometimes cannot passed to the consumers since sales will decline. This negatively affects the profit margin.
Weather changes and natural calamities are other major forces which affect this chain of restaurants, organic foods are very depended on various weather conditions. Good weather conditions will lead increased supplies while adverse weather conditions will lead decreased