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chipotle my slides

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chipotle my slides

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  1. BARGAINING POWER OF BUYERS: HIGH • Low switching costs between competitors • The buyer generally expects to pay the same price for fast food/fast casual meals • Buyers are able to collectively set the price, the business has very little power in raising or lowering its prices • Customers demand quality food at a reasonable price • Customers have low switching costs

  2. BARGAINING POWER OF BUYERS: HIGH • Luckily, the restaurant segment maintains steady growth, even during financial downturns (ex. financial crisis 2008-2009) • Powerful buyers should be considered a threat when buyer power is high, customers cannot be taken advantage of easily in a restaurant industry • So why Chipotle?

  3. BARGAINING POWER OF BUYERS: HIGH • The industry is saturated with little room left, there is heavy competition between businesses • Luckily Chipotle maintains a sustainable competitive advantage • All organic ingredients at a good price • Highly customizable meals • Powerful brand image • Chipotle maintains strong barriers to entry, incumbents are weak • But for how long?

  4. ShopHouse Southeast Asian Kitchen • Our new restaurant: • Completely different menu • Business strategy stays the same • “The ShopHouse Effect” • Catchy, but only because of “The Chipotle Effect” • Slow growth and not catching as fast • P. F. Chang’s already leads this industry in Asian cuisine

  5. Back to Chipotle… • Buyers love Chipotle! • To the right: • A picture of an eye-grabbing television commercial during the 2012 Grammy Awards • Audiences mostly respond well to ads on Social Media Platforms • Traditional adverting has become less important for Chipotle

  6. A strategic proposal: • ShopHouse is good but, Chipotle is great • If P.F. Chang’s is too strong, we should prepare for a possible loss • What about the “non-Chipotle” customers? • Any of them here?

  7. A strategic proposal: • Lets not focus on ShopHouse too much • Putting our eggs in one basket • Lets stick to what we do best: • A new strategy in advertising is profitable for Chipotle, especially for maintaining our buyers’ loyalty to our brand and our visionfor the long term

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