Swot Analysis Chipotle

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An industry environmental analysis uses Michael Porter’s Five Forces Model, which will ultimately display the overall attractiveness and profitability of the industry in which Chipotle competes. There are five barriers that impact the markets profitability, depending on how hard they are to surpass. These five barriers are as followed: Threats of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products, and Intensity of Rivalry among Competitors.
To begin, the first threat is the threat of entrants, which looks at how easy it is for another competitor to enter that same market. This threat is high, because there are low entry barriers and relatively low capital requirements to enter the restaurant industry. Similarly, there is easy access into to the market and low entrance cost for start-up businesses. While many may believe the market is already saturated with many alternatives to Chipotle, there is still many opportunities for new entrants to enter the market with new or existing food concepts. Overall, all of this makes the threat of new entrants high.
The second threat, bargaining power of suppliers, looks at how much power a supplier has and how much control it has over the potential to raise its prices. This threat is medium for …show more content…
This threat is medium, but the threat may increase in the future due to a decline of price stability. As of currently, the threat of bargaining power of buyers is medium, because Chipotle offers a standard menu with relatively stable prices. Although some believe Chipotle is easy to substitute, the business has a very unique concept that consumers love and are loyal to. In addition, Chipotle serves better quality food than competitors, such as Taco Bell. As a result, these key reasons allow the threat of bargaining power of buyers to be

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