Mission
Zambrero can be the only food chain in the world which was founded by a doctor and a philanthropist. The Foodchain caters to the authentic Mexican flavors and gives a very funky twist by not only feeding the body, but also feeding the soul as well (Woolway, 2016).
The 21 years old university Student Dr. Prince founded the chain by opening a modest outlet in his hometown Canberra in 2005 after identifying a business opportunity for Mexican food in Australia. The probability of appreciation for the Mexican food was anticipated by the founder, which is evidently true as well. The food chain now has more than 120 stores in Australia, New Zealand, and Thailand and in Ireland, with more than 2000 employees across the group family.
The Business offers Mexican food with the fusion of Australian freshness by including fresher elements of salads, salsas and their own range of sauces (Woolway, 2016).
Differentiation-Business Level Strategy
From its beginning, the foundation of Zambrero is based on being a community conscious, and being conscious of their corporate social responsibility. The business of Zambrero is based on the philosophy of doing business with a cause. The business is running based on the beliefs of its founder Dr. Prince, who is committed to eradicating hunger of those disadvantaged people of the world (Digges, 2017).
The business level strategy of the food chain Zambrero is based on differentiation. The differentiation strategy is based on an integrated set of actions which are taken in order to deliver services and produce goods which are affordable for the customers and also perceived as different in the ways which are important to them (Nandakumar, Ghobadian, & O’Regan, 2010). The Zambrero business level strategy is based on differentiating itself from its competitors by using the social conscience. It is evident that the brands which are seen to have the social conscience are automatically perceived as different setting it apart from other businesses. This also plays a vital role as a deciding factor for the franchise as well who is looking for a successful career as well as social gains (Digges, 2017).
Value Chain Analysis
Looking at the Value Chain for Zambrero differentiation strategy, we can identify following aspects of value contributing to the margin for the firm:
1-Firm Infrastructure
The infrastructure of Zambrero has highly developed information systems which are used to understand the preference of the customer preference. Furthermore, the brand Zambrero focuses on synergy on the philosophy of their CSR initiative of hunger eradication with their franchises and suppliers. This boosts their aim of providing high-quality products. The franchise-based infrastructure encompassing 120 stores is the competitive edge of Zambrero (Nandakumar, Ghobadian, & O’Regan, 2010).
2-Human Resource Management
Zambrero has managed to position itself as the employer of choice by developing employee-centric approach and strategies. Extra Week’s Leave for employees to undertake voluntary work, to motivate them to visit Vietnam and witness their end hunger program are some of these strategies (Woolway, 2016).
3-Technology
Zambrero evidently uses technology to support expanding its network and reach its customers for better efficiency and feedback. The Task Retail Technology’s Point of Sale Terminals Systems across its expanding network gives it the platform to use this groundbreaking business intelligence tool for its benefits (Mazzarol, Clark, & Reboud, 2014). Furthermore, Zambrero has also used TASK’s services to get ahead in the community service by building an interface for the donation which allows guests to select the country they want to donate
4-Procurement
The raw material at Zambrero tends to be more organizing, fresh and the quality is needed to be of a higher standard. This leads it to look for the suppliers who are raising their supplies ethically and are complying with standards. The firm looks to use material which is an Australian based more, however, they occasionally have to import some supplies as well, which are in shortage in Australia (McCauley, 2017).
5-Inbound Logistics
The freshness and high-quality maintenance of Zambrero raw ingredients are crucial for its standard maintenance. Therefore, the brand manages its inbound logistics based on the best suppliers in town. The relationship with their suppliers in this respect is crucial, and Zambrero tends to create a partnership with its suppliers.
6-Operations
The operations at Zambrero are led by an innovative and passionate team, which shares the core values and ambitions of the brand. Zambrero believes that the right people make all the difference in operating such a giant network (Gokus, 2015). Staff presents the service to customers with a smile and the values of its people play a vital role in their performance. Zambrero with its rapid expansion is focused on developing new ideas for its menus focusing on the customer preferences (Digges, 2017).
7-Outbound Logistics
Zambrero uses accurate and responsive order processing procedures by using the latest technology in the form of Task Retail Technology’s Point of Sale Terminals Systems. It also makes it relevant to the market by using the delivery services of Deliveroo and Uber Eats for timely delivery to the customers
8-Marketing And Sales
At Zambrero, the relationship with the suppliers, franchises, and the customers are centric to the success of its operations. The company focuses on hiring really strong, young and passionate individuals sharing their social responsibility aim to contribute to the company success. Zambrero markets its brand as highly nutritious and having massive energy in one bowl or burrito (McCauley, 2017).
9-Service
The company Zambrero aims at providing the best service through franchising by providing training and support to its franchises. It also offers lower entry cost ranging from $250,000 to 300,000 making it easier for the franchise to enter (Attard, 2012). The philosophy of Zambrero makes its customer service centric, which pushes it to give the best service to its customers (Kotey, 2016).
Value Chain Analysis
References
Digges, M. (2017, January 28). Meaningful Mexican: Zambrero donates 15M meals to those in need. Retrieved from https://www.sbs.com.au/food/article/2017/06/28/meaningful-mexican-zambrero-donates-15m-meals-those-need
Gokus, O. (2015). Strategy Levels – Performance Relationship And The Mitigation Effect Of Market Orientation On Strategy Levels. Academy of Marketing Studies Journal; Arden, 19 (1), 250-264.
Kotey, B. (2016). Enablers and Barriers to Exit of Regional Small Business Owners in Australia. Australian Geographer; Sydney, 47 (2), 195-214.
Mazzarol, T., Clark, D. N., & Reboud, S. (2014). Strategy in action: Case studies of strategy, planning, and innovation in Australian SMEs. Small Enterprise Research; Wellington, 21 (1), 54-71.
McCauley, D. (2017, April 26). How young rich-lister Sam Prince built the Zambrero fast-food empire. Retrieved from http://www.news.com.au/finance/business/retail/how-young-rich-lister-sam-prince-built-the-zambrero-fast-food-empire/news-story/67f37140c5d399dfec7acd4501f57d63
Nandakumar, M. K., Ghobadian, A., & O’Regan, N. (2010). Business-level strategy and performance: The moderating effects of environment and structure. Management Decision; London, 48 (6), 907-939.
Woolway, M. (2016, October 6). Zambrero: Mexican with a mission. Retrieved from https://www.hospitalitymagazine.com.au/zambrero-mexican-with-a-mission/
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