Question

Use a Value Chain analysis to identify core and distinctive competences for Chipotle and describe how these apply to Chipotle’s strategic situation

Answer 1

Does Chipotle Mexican Grill have any core competencies, and, if so, what are they?

Yes, Chipotle does have a core competency that helps it differentiate itself from other businesses. This core competency is the company's offering of high-quality food and services at reasonable prices. The company attains this by having a limited number of items on the menu, effective supply chain management, and operating within the company limits.

What are the primary and secondary components of Chipotle's value chain?

The primary components of the Chipotle value chain are its great customer service, quality foods through the use of nutritious ingredients that are free from harmful chemicals, and quick order delivery. Secondary components of Chipotle's value chain are the assembly line process and the use of billboards and adverts to market the company.

What action recommendations would you make to CMG's top executives to strengthen the company's growth and profitability?

The following are my recommendations to Chipotle.

• Diversity and expand the menu: their competitors are gaining an advantage as a result of this therefore, the company should research and come up with new health dishes. Conduct numerous site visits to ensure that the standards, regulations, and rules are followed to the letter. Introduce a variety of beverages and health drinks. This attracts more customers. Ensuring that the customers have open and efficient lines of communication for them to air out their issues

• Tap into the international markets arena by opening in places such as Britain, France, Italy, and emerging economies in Africa such as Nigeria and Kenya.

• Diversify and expand the menu: their competitors are gaining an advantage as a result of this; therefore, the company should research and come up with new health dishes. Conduct numerous site visits to ensure that the standards, regulations, and rules are followed to the letter. Introduce a variety of beverages and health drinks. This attracts more customers. Ensuring that the customers have open and efficient line of communication for them to air out their issues