Positioning Fast Food Compare two fast food restaurant chain

Positioning Fast Food Compare two fast food restaurant chains—Chipotle and McDonald’s (who no longer owns Chipotle). Chipotle has locations throughout the U.S., but that presence is obviously dominated by McDonald’s vast network. Chipotle is positioned as offering fresh food, made to the customer’s requests, that is relatively healthy. The company rarely advertises. In contrast, McDonald’s brand associations revolve more around convenience, inexpensive food, and given their advertising, family outings.

These brands appeal to their customers with very different philosophies. Indeed, on the surface, they appear to have little in common, other than their sector.

Case Discussion Questions

1. Characterize these companies’ positions in the marketplace from your best estimates as to the customers’ perceptions. In which cell does each exist in the positioning matrix? 2. Would the two chains see each other as competitive threats?

3. What could either do to make its business (profitability) even stronger?

Solution

Answer 1: Below are the characteristics of Chipotle’s positions in the marketplace:

The above points suggest that the organization is willing embrace policies in order to attain competitive advantages among its peers.

Below are the characteristics of Mc-Donald’s positions in the marketplace:

In regards to positioning matrix is considered, Chipotle resides on the cell which consists of High performance expectations because the organization is willing to accept all the government regulation and guidelines in order to run the business. On the other hand Mc-Donalds is on the high performance cell because the organization is honest and competent enough to capture the public at large and is dominating the fast food market in every country in which they are operating which itself make them business pioneers among its competitors.

Answer 2: Yes, both the chains can become competitive threats in near future, if they roll out the same food products which each of them are offering right now in the marketplace.

Answer 3: In order to make the business profitable and stronger, both the chains have to sack their respective underperforming suppliers, customers and employees, those who make the working day more stressful, Secondly realigning its internal supply chain by re-engineering the existing business processes in order to attain competitive advantage and reducing its operating cost which can only happen when team start innovating within the organization which will eventually lead to disruption.