Chapter 13: Strategic Alliances

In the textbook, Gaining and Sustaining Competitive Advantage by Jay Barney strategic alliances is the primary topic in chapter 13. "A strategic alliance exists whenever two or more independent organizations cooperate in the development, manufacture, or sale of products or services. Strategic alliances can be grouped into three broad categories: nonequity alliances, equity alliances and joint ventures."

Chipotle like many others in the fast food industry follow the product differentiation model where more emphasis is placed on creating products that are different than the status quo to generate profit in the marketplace. Therefore, Chipotle has not entered into a strategic alliance with another company due to their desire to maintain exclusivity within the organic Mexican fast food industry.

However, the company (Chipotle) did enter into a nonequity alliance with Family Farmed.org in 2011 to create a new market for sustainable farms. Chipotle which prides itself on implementing organic ingredients into its menu items, has joined forces to bring more healthful and organic produce to local communities in hopes of creating a social movement for a healthier lifestyle.

Additionally, the joining of forces between these two organizations assists in proving Chipotle with the organic produce and dairy used in its restaurants and a stable revenue stream for the farmers who produce these goods.

Strategic Partnership with Chipotle Mexican Grill