Question
How would you respond to this discussion post regarding the prompt I provide Prompt: Chipotle obviously follows a differentiation strategy. Years ago, when the fast-food
How would you respond to this discussion post regarding the prompt I provide
Prompt: Chipotle obviously follows a differentiation strategy. Years ago, when the fast-food industry in the U.S. was mature and dominated by only three firms -- McDonalds, Burger King, and Dairy Queen -- McDonalds decided to take a large ownership position (an "acquisition") in Chipotle.
CEO Steve Ells basically ignored all of the advice given to him by McDonalds during this period before Chipotle went public with its IPO (Initial Public Offering).
Discussion Post: I believe that Ells' stance was the correct one for Chipotle in the long run because it is currently ranked 10th on the Top Chain Rankings from Restaurant Business and is continually climbing. I think that the smartest decision that really made it work and not flop was the acquisition from Mcdonald's because without this it would've taken years for chipotle to build that capital to be able to expand geographically but with the sharing of market power, they were able to expand and eventually buy the accusations shares back after they gained enough capital. Keeping the restaurants diversified from Taco Bell and Baja Fresh and not changing the name, doing breakfast, or making drive-throughs has been what has made this company stand apart from all of the others and kept the intrigued loyal customers coming back to this type of service and cuisine time and time again. I think that if Ells' would've listened to the ideas and changed his company they would not have made it and fallen through the cracks of starting up a chain restaurant because Taco Bell already existed. Yes, the risk was high starting a restaurant and not following the lead of other industry leaders but that risk has most definitely paid off.
Response?
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