Chipotle Seen Becoming Mcdonald's With Drive Throughs Essay

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Chipotle Seen Becoming McDonald's With Drive Throughs founder and CEO Steve Ells is interviewed, in addition to the chain's director of investor relations, Alex Spong and several financial industry analysts. One of the most influential is David Einhorn, a hedge fund manager who said Chipotle was over-valued as a stock. The article shows the challenges that Chipotle confronts today with flat sales and profitability while competitors continue to grow. What is apparent from the article is that the further Chipotle gets away from solidifying and strengthening their customer experience, the worse they do financially.

The target concepts that Chipotle is considering include competing in an entirely new time segment of the food service market, breakfast. The company is making this decision based on the observations they are making of competitors.

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The same decision to open a drive-throughout window is being made due to McDonald's and other fast food restaurant competitors also having this feature. If Chipotle is not careful they will fall into a competitive strategy of mimicking and attempting to be at parity with their competitors rather than setting their own unique direction and strategy.

Chipotle management perceives the most critical factor being that of convenience with a drive-through window and the ability to compete in a new meal segment of the market. Yet as the article shows, the company does exceptionally well when it competes on customer experience first. Instead of attempting to be at parity with competitors, Chipotle needs to think more strategically and focus on how….....

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"Chipotle Seen Becoming Mcdonald's With Drive Throughs" (2012, July 05) Retrieved May 20, 2024, from
https://www.aceyourpaper.com/essays/chipotle-seen-becoming-mcdonald-drive-throughs-83226

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"Chipotle Seen Becoming Mcdonald's With Drive Throughs" 05 July 2012. Web.20 May. 2024. <
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"Chipotle Seen Becoming Mcdonald's With Drive Throughs", 05 July 2012, Accessed.20 May. 2024,
https://www.aceyourpaper.com/essays/chipotle-seen-becoming-mcdonald-drive-throughs-83226
   

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