Taco Bell and Environmental Opportunities

Austin Beckford
2 min readFeb 15, 2021

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From the perspective of Taco Bell, the most immediate threat that is apparent is the threat of domestic rivals, and thusly, Taco Bell’s biggest opportunities are it’s ability to compete on dimensions other than price. While Taco Bell was the undisputed low-price champion of fast-food during my youth, the widespread adoption of dollar-menus and drink-free based combos, such as the Wendy’s 4 for $4 or 2 for $5 have made winning on value alone in fast food more difficult.

Product differentiation is a dimension in which Taco Bell distinguishes itself. However, this is not merely by being the only national fast-food Mexican chain in the US. Taco Bell has consistently launched new menu items, preventing their menu from appearing stale or dated, even as other chains have introduced competing burrito, taco, and wrap options. Taco Bell has also found success in distinguishing themselves through their branding partnerships with Mountain Dew and Doritos, not only featuring branded ingredients such as in the Oreo McFlurry, but creating truly unique taste experiences that are exclusive to Taco Bell.

Finally, cost leadership is another way to distinguish itself from a competitor, and Taco Bell made a striking decision in cost leadership in 2013 that truly distanced itself from it’s competitors by discontinuing their Kids Meal offerings. In addition to the increase in average price from $2.84 to $3.18 for kids meal items when purchased a la carte off the standard menu, Taco Bell incurs the savings of getting rid of the toy that has become standard in most children’s meals at fast food restaurants. Taco Bell did recently attempt to make a further attempt at menu simplification by removing vegetarian options that backfired, which indicates that cost leadership only works to the extent that you can keep your customers satisfied.

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Austin Beckford
Austin Beckford

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