Identify Your Competitive Advantage
Desiree Davis
Strayer University
BUS100(Intro to Business)
Professor Grady Meeks
10/28/13

Identify Your Competitive Advantage
Many business organizations seek to have the competitive advantage over its competitors. What is Competitive Advantage? Competitive Advantage is when an organization is more successful than its competitors. It is what equips a business organization to succeed and better satisfy the needs of consumers. In the United States we operate off of an economic system called capitalism, or free market system that is based on private ownership, economic, freedom, and fair competition (Kelly, McGowen, Williams, 6th Edition 2014). In order to thrive and sustain in this market system businesses must offer the better value to their customers, or risk losing them to their competitors. In the United States competition is fierce, especially in the restaurant industry where according to the National Restaurant Association there are about 970,000 establishments. In this essay I am going to determine the competitive advantage that Chipotle Mexican Grill chain has over its competitors.
Chipotle Mexican grill first opened its doors in 1993 and has since expanded to over 900 restaurants. It serves to demonstrate that food served fast doesn’t have to be a fast food experience, and offers its customers a casual dining experience that’s in line with full service restaurants. Some of the strengths of the restaurant includes its use of high quality ingredients, healthy menu options, recipes, cooking techniques, and restaurant design. According to its website (www.chipotle.com), the restaurant also recently evolved its vision and states that “fresh in not enough anymore.” It proudly boasts “Food with Integrity,” and states that it “means serving the very best sustainably raised food possible with an eye to great taste, great nutrition and great value.

It means that we support and sustain family farmers who respect the land and the animals in their care. It means that whenever possible we use meat from animals raised without the use of antibiotics or added hormones. And it means that we source organic and local produce when practical. And that we use dairy from cows raised without the use of synthetic hormones,” (chipotle.com). The restaurant appeals to the consumers with their use of fresh ingredients, by offering them high quality foods, and also healthier menu options. By supporting local farmers it creates a strong relationship with the supplier, and creates a loyal customer base. Its simple yet inviting design of the restaurant also appeals to the consumer and is similar to a full dining experience. The company’s awareness of the impact of their business environmentally and socially speaks volumes.
A couple of weaknesses of the restaurant include price, availability of sourced foods, inclement weather, and economic instability. Compared to some of its competitors the restaurant is a bit pricey which could essentially turn customers away if they don’t feel like they are getting a good value. What also could spell trouble is the fact that growing produce year round in the United States is hard. If they don’t outsource or find another option, they may have to cut some menu options during the colder months of the year. Inclement weather and natural disasters could hurt the company substantially due to the fact that it could affect its produce. Economic instability could also hurt the company. When times are hard, people stay home to eat instead of going out. Threats to the brands success like rising food costs which could drive up menu prices, and rising employee expenses could lead to extra expenses.
With its various strengths and loyal customer base opportunities for Chipotle are endless. They could utilize their strengths to appeal to an even broader base of consumers by commercializing some of its products, opening more stores internationally and abroad, and by offering various ways to order food using technology. The company could minimize some its weaknesses by expanding its numbers in suppliers that adheres to its strict standards, so that it doesn’t suffer a complete loss from inclement weather or a natural disaster, and better explain to their customers about what they are getting for their money. I believe these strategies will be affective because by having more suppliers, the brand won’t suffer a complete loss if there is inclement weather, or a natural disaster. Also, when it comes to informing the customers, people will always want the better value, so if there is no plan in lowering menu prices, explain as to why your product is worth the price.

References
Kelly, M., McGowen, J., Williams, C., (2014) Introduction to Business (6th Ed.). Mason, OH: Cengage Learning.
Food With Integrity. Retrieved from http://www.chipotle.com/en-us/fwi/fwi.aspx