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Marketing

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Nov 24, 2024

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DISCUSSION 15 Research a company that made major changes due to COVID-19 and did so using IT in the process. With the advent of COVID-19, many organizations had to shut down and reorganize their business strategies to survive the pandemic. As this highly infectious virus stopped people from getting together in crowded places, businesses such as IT offices, food chains, malls, and shopping centers found it difficult to continue their daily operations. In such a situation, a new strategy was necessary to adapt to the remote world. In this discussion, we will take a look at those businesses that were successfully able to adapt to the pandemic. They were able to not just survive but also prosper in the process using their innovative business strategy. Today we take a look at the famous food chain, Chipotle Mexican Grill (CMG) and how they used IT to overcome the pandemic. Chipotle Mexican Grill has been one of the few food businesses that have successfully transformed itself into a digital brand. Over the years, CMG has primarily been a dine-in chain, but all that had to change due to the advent of COVID-19 [1]. The marketing and management leaders at CMG were far-sighted and decided to go contactless a year before the actual pandemic panic kicked in. Chipotle launched the now much-copied order-ahead drive-thru Chipotlanes [1]. This feature allowed them to provide their services as a order early easy-to-pick-up drive-thru for customers. Moreover, Chipotle also changed its food preparation and safety protocols. They hired a new VP for food safety, which allowed them to adopt several procedures that ensured the safe travel of food to the endpoints. Chipotle also created its own independent Food Safety Advisory Council that allowed them to perform microbiological testing of raw ingredients [2].
Another reason for CMG’s success during the pandemic is the efficient and aggressive marketing campaigns that allowed them to promote their digital services such as the CMG order app. This app has been a pioneer in driving digital sales. The number of loyalty program members was around 8 million before the pandemic, which has now grown to more than 15 million subscribers. During the pandemic, they have also tweaked their menu to prepare & deliver items faster and reduced their delivery service charges to as low as $1 [3]. All these changes show how a business can revolutionize itself with innovative digital strategy even in the face of a pandemic. References: [1] Heather Lalley (May 01, 2021) How Chipotle crafted itself into the perfect pandemic brand https://www.restaurantbusinessonline.com/operations/how-chipotle-crafted-itself- perfect-pandemic-brand [2] Alicia Kelso (Apr 23, 2020) Why Chipotle Will Come Out Of The Coronavirus Crisis Stronger Than Ever https://www.forbes.com/sites/aliciakelso/2020/04/23/why-chipotle-will- come-out-of-the-coronavirus-crisis-stronger-than-ever/?sh=9fb1b0468ca5 [3] Nancy Luna (Sep 18, 2020) Chipotle Mexican Grill outlines key tactical wins during COVID-19 crisis https://www.nrn.com/fast-casual/chipotle-mexican-grill-outlines-key- tactical-wins-during-covid-19-crisis
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