Shake Shack

Running of an organization sometimes becomes a very hard task, due to the competition that the organization might be facing from its competitors. This therefore makes it hard for organization to be able to keep up with its competitors, particularly if its competitors have put very good plans, approaches and strategies at place (Robert, 33). Competition is inevitable, and for the organization to be able to keep up with its competitors, then it needs to come up with very unique plans, approaches and strategies, thus being able to beat its competitors. Moreover, the organization needs to understand its capabilities, and drawbacks, working on them, hence being able to easily beat its competitors.

1. Shake Shack is one of the best casual restaurants in the US, and so it requires very unique strategies in order to be able to beat its competitors such as the giant McDonalds and KFC. This is very possible, only if Shake Shack uses its current capabilities in order to be able to beat its main competitors (Taylor, Robert & Bernadette, 44). These capabilities are, Differentiation (D) and Economy (E) as a means of being able to avoid spending a lot of money in order to beat its competitors. DE is one of the best strategies, which most companies tend to use in order to be able to beat their competitors, within the shortest time possible and at the lowest cost. Shake Shack should therefore come up with very unique foods, such as a very different type of burger, in order to create differentiation in the market (Besanko, 65). The uniqueness of the burger may include different ingredients, and different delivery methods. This will therefore attract the customers to Shake Shack, since customers tend to get tired with old things (Robert, 33). Most customers will therefore be attracted to the unique burger, thus spreading the word of mouth after eating the burger. The restaurant will therefore attract most customers without advertising the new type of burger, hence being able to beat its competitors.

When it comes to the economy, the restaurant should be able to fully minimize wastes, thus increasing profits (Taylor, Robert & Bernadette, 44). First the restaurant should not waste any time, and it should therefore deliver foods to its customers within the shortest time possible (Robert, 34). In addition, the restaurant should further minimize the costs of preparing the foods, thus being able to set a fair price which most clients can easily afford (Besanko, 65). This move will consequently help in increasing the market share of Shake Shack, since it will be able to produce high quality products at very low prices.

2. This plan is supposed to be effective after a period of two and a half weeks. Over this period, the restaurant’s Chefs should be able to come up with very unique recipes and ingredients, in order to create very unique types of foods (Taylor, Robert & Bernadette, 46). This does not therefore mean that the foods will be changed, but the set recipes of cooking the foods will be changed in order to create very unique foods. In addition, processes of reducing the costs of preparing the foods should also be looked at. Moreover, the restaurant should be able to come up with a unique working schedule, thus being able to further reduce time wasting in the restaurant (Sertl, Jennifer & Koby 70).

Differentiation and Economy will consequently help in the planning and execution of the plans fully. Moreover, the company will be able to come up with cost effective strategies thus ensuring that the cost of production is further reduced. While the cost of production is being reduced, the quality of the foods should be increased, thus allowing the customers to be able to enjoy the meals at very cheap prices, with good quality (Taylor, Robert & Bernadette, 46). This move will therefore help in retaining the current customers of Shake Shack, while at the same time attracting new clients. On the other hand, Shake Shack will gain a huge market share thus beating its competitors, hence getting good compliments.

3. The reason as to why I chose Differentiation and Economy was because these are the two capabilities which can enable the restaurant to beat its competitors at very low costs (Sertl, Jennifer & Koby 74). Shake Shack is competing with giant international companies such as McDonald’s, it needs to come up with very effective strategies at very low costs (Taylor, Robert & Bernadette, 47). Thus, DE became the best approach, since it will enable the company to be able to easily its competitors, at a very low costs. On the other hand, the restaurant is expected to gain a huge market share, simply because of preparing very unique foods. Most customers get fed up with the same types of foods and products, thus they will therefore be attracted to Shake Shack, simply because it prepares very unique foods. The cost of preparing the foods will also be low, and thus reducing the selling prices (Besanko, 68). Maintaining the quality of the foods and increasing their quality will easily allow the restaurant to beat its competitors, thus receiving good compliments from the compliments.

This strategies may however not be effective if the correct measures are not taken in order to ensure that the process becomes successful (Taylor, Robert & Bernadette, 47).  The new recipe created should be tested using the restaurant’s customers in order to make sure that it does not backfire. The new recipe may fail to impress the employees, and this may affect the restaurant negatively (Besanko, 68). Thirdly, the restaurant should be careful when reducing the cost of production since this may lead to the production of low quality foods. The restaurant should therefore look at the mentioned issues very carefully in order to make sure that it does not end up losing its market share.

 

Work Cited

Taylor, Robert, and Bernadette Andréosso-O'Callaghan. Emerging Asian Economies and Mncs Strategies. , 2016. Internet resource.

Besanko, David. Economics of Strategy. Hoboken, NJ: John Wiley & Sons, 2010. Print.

Sertl, Jennifer, and Koby Huberman. Strategy, Leadership and the Soul: Resilience, Responsiveness and Reflection in a Global Economy. Axminster, Devon: Triarchy Press, 2010. Print.

Robert W. Keidel. The Geometry of Strategy: Concepts for Strategic Management: Routledge. 2010. Print