Chipotle Swot Analysis Essay

814 Words4 Pages
One of the weaknesses is the ingredients used in most of its products. Their foods have been constantly accused of having high cholesterol levels which cause heart problems. The quality of their foods has also gone down as compared to other fast food businesses. For instance, in China, authorities had accused McDonalds of selling expired meat. Its overcrowded menu, poor service quality and relatively lower quality products have made the company lose its relevance in the market. Therefore, the management has to address these issues to ensure their reputation does not go down the drain and do not lose their competitive edge in the market. Dealing with Opportunities and Threats The company is exposed to opportunities in the market such as expansion to new markets and developing a well-enhanced menu to the customers. Some of the threats include competition from other fast food businesses and strict regulations from the government on the ingredients used. To deal with these opportunities, the company’s marketing department carries out a market analysis before…show more content…
There has been campaigns and studies that have shown that the foods sold at McDonalds are not very healthy. According to Monaghan (2015), many consumers are shifting their preference to other foods provided in other restaurants such as Chipotle. Secondly, they need to address the management issue at the company. Early this year, they changed their CEO, which is a sign that all is not well in the management as the company first 2015 quarter profits fell by 11%. They have to make bold decisions on whether to close their underperforming restaurants, especially in China and Japan. Additionally, the rising prices of goods in the commodity market is also a major problem for the company. The high prices increase the production costs which then lowers the profit margin of the

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