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Which One of the Five Generic Competitive Strategies Discussed in Chapter 5 Most Closely Approximates the Competitive Approach That Chipotle Mexican Grill Is Employing?

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Submitted By rayluka
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The five generic competitive strategies that any industry uses are basically based on cost and product differentiation or a mix of both with a broader or focused implementation. In Cost Leadership strategy the industry focuses on producing low cost products in the existing market and tries to attract larger section of consumers by keeping relatively low price of products. On the other hand, differentiation strategy involves creating an edge over the competition by making the products and services different in a better way from that of the competitors. When we focus these any of these two strategies for a segment of product, market or consumer section it becomes the other two types of competitive strategy. The fifth category can be seen as a mix of all these strategies that is used wherever possible to get the maximum benefits for the industry, but it can be a little complex to implement effectively. When we look at the strategies that have been used by Chipotle Mexican Grill throughout, it mostly comes close to the differentiation approach. Chipotle is also a fast food chain that serves fast food that is freshly cooked for the customers shortly after the order being placed. There are many other big and small players in this category in the same market, such as McDonalds and Qdoba Mexican Grills etc., but Chipotle still remains the first choice among Mexican fast food lovers because Chipotles menu and food in that is different than that offered by the others. Chipotle strives to stay different from the others at root level by creating the favorite foodof its customers with a difference. That difference comes from the ingredients that are used and the environment they are served in. Chipotle acquires a large section of its raw material from organic resources, meat from farms where the animals, environment and the people involved are respected. Thus Chipotle becomes different from others by using healthy and environment friendly fast food producer. It does not seem to use the cost strategy as its food is relatively high prices because of the higher cost involved in the use of organic raw material.

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