Differentiating Between Market Structures Essay

Using the virtual(prenominal) organization of Kudler delightful Foods, evaluations bequeath be made to determine intellectual nourishment trade social system and competitiveness. Kudler exquisitely Foods current strategic plan for 2003, grocerying overview, and market surveys go away provide information to evaluate how Kudler competes in its market and where its strengths and weaknesses ar located. Based on the evaluation of Kudler exquisite Foods an applicable market social structure will be determined and the structures effects on the organization and its long-term positivity. Recommendations will be made for Kudler ok Foods while comparing real-world organizations.Kudler delightful FoodsLocated in the San Diego champaign, Kudler alright Foods has cardinal locations offering imported and house servant specialty foods. Founder, Kathy Kudler found the joy of gourmet cooking to be a business opportunity and opened the first off gunstock in 1998. The first year of business was profitable and paved way to the opening of devil rise to poweral stores. Shopping the world for the finest of products al moos Kudler all right Foods to offer the finest of wines, foods, and related goods. It is Kudler alright Foods mission to provide these fine plectrons coupled with wise(p), experienced, and stabilizing staff to create a pleasing shopping experience (Virtual cheek Portal, 2007).Strategic Plan 2003To provide Kudler Fine Foods mission while appeaseing competitive, profitable, and delivering the goods cognise for, strategic plans are necessary. In 2003 a strategic plan was generated, deep down the plan traditional supermarkets were thought of as disceptation. Albertsons, Vons, and Ralphs advertised specialty foods a same(p) to Kudler Fine Foods in the area of meat and produce. However, Kudler stays competitive by attracting specific customers cooking gourmet. While competitive stores offer similar food, they do not offer the same customer s ervice, gourmet accessories, and foods Kudler offers. Whole Foods and monger Joes offer similar product nevertheless aim to defecate customers poreed on healthy lifestyles not the gourmet experience.Foreign food stores are not a elephantine competitor, they to do not focus on the gourmet experience. While foreign food stores may ease up particular ingredients, they lack the competitive advantage of selection, service, expertise, or rotating shafts Kudler Fine Foods provides. harmonize to 2003s strategic Plan Kudler Fine Foods customers are less price certified than competitors (Virtual Organizations Portal, 2007). There is no direct competition although thither are competitors trying to gain Kudlers customer base. The combination of mesh and goods Kudler Fine Foods offers sets it away from competition. Kudler Fine Foods uses its tell goods, atmosphere, knowledgeable work, intimate customer loyalty, and expansion of goods and services to stay competitive within the mark et. Ultimately it is the gourmet experience that makes Kudler Fine Foods a competitive force in the market.Marketing OverviewExperiencing significant growth, Kudler Fine Foods looks to increase the profitability and loyalty of consumers and expand services. Kudler is strategically increasing profitability and loyalty of its customers by increasing internal efficiency, enacting a frequent shopper program, and expanding the services offered. Using a frequent shopper program customer purchases shopping behaviors are tracked and refined so applicable products can be offered to respect customers. Frequent shoppers will be offered points for shopping to redeem rewards to verify store loyalty. To expand services Kudler offers exclusive upscale events in the store and in the comfort of customers own homes, which increases word-of mouth marketing, customer loyalty, and social networking.In addition to expanding services and offering frequent shopper programs to increase revenue Kudler Fin e Foods focuses on reducing costs by increasing efficiency. Using a large department store to benchmark, Kudler is engaging in developing employees through preparedness programs and upgrading software systems. Costs are reduced by minimizing purchases while maintaining tolerable amounts of stock. Using information retrieved form the frequent shopper program and the dollar value and profit margin per transaction orders are placed to best produce customers needs while tracking sales information for better forecasting, ware selection, and inventory management (Virtual Organizations Portal, 2007, para.5).The store advertises the same sales and merchandise for the three stores and coordinates to maintain enough inventories within each store location to maintain a customer service level of 95% (Virtual Organizations Portal, 2007). Like opposite retail stores customer satisfaction is a prime marketing tool but so is the ever changing gourmet items offered in the stores. red-hot item s are introduced regularly into the store Kathy looks to competitors for pricing strategies and product comparison to market the new goods. While Kathy looks to competitors her customer differs from other markets in the area, they look for a gourmet experience. Market SurveysKudler Fine Foods conducted market surveys in 2010 and 2011to collect data from consumers. The surveys do to identify opportunity, measure success, and identify strengths and weaknesses within the organization. The 2010 survey indicated that thither was not a good selection of products present in the store. This was an area of weakness and an opportunity to improve the 2011 survey showed an increase of satisfaction in the selection of products presented in the store. Once a weakness, the surveys measure success in the increase of product selection from 2010 to 2011. Surveys identify store hours, atmosphere, merchandise satisfaction, and knowledgeable service representatives as Kudler Fine Foods strengths. Weakn esses include merchandise displays and in 2010 selection and general store satisfaction. The marketing surveys show improvements from 2010 to 2011 in both strengths and weaknesses indicated by customers (Virtual Organizations Portal, 2007).Kudler Fine Foods Market StructureKudler Fine Foods is a noncompetitive competition market structure. Within a monopolistic competition market structure on that point come both domineerings and negatives effects for Kudler Fine Foods.PositivesWhile on that point are many similar organizations Kudler Fine Foods goods and services are variantiated. Kudler Fine Foods offers physical product differentiation in the service offered. For example, customers look to Kudler Fine Foods for a gourmet experience that cannot be found elsewhere. Kudler Fine Foods overall performance creates an experience. This experience is different from competitors accounted for in the strategic plan. Another positive of a monopolistic competition is that they are price makers, because Kudler Fine Foods offers differentiated products and services they are able to set their own prices. Kathy uses competitors as a price guideline but sets her own prices. In a monopolistic competition market large profits are possible in the short blow over.Negatives Kathy easily entered the market and so will other individuals because there are no barriers to entry in the monopolistic competition market. The fewer barriers to entry in a market the more competition arises. The low barriers to entry in this market mean virtuoso must fork out an opportunity to differentiate Kudler Fine Foods has this opportunity by offering different goods and services from its competitors. To stay actively competitive Kudler Fine Foods must restrain in advertising to let customers know the difference between Kudler Fine Foods and their competitors. Advertisement costs time and money and can be voiceless to make advertisements stand out against competitors.Long-term profitabilityAs mentioned preceding(prenominal) in the short counting profits are possible but because there are no barriers to entry many firms are attracted to the market, which increases in the long-run. As new firms enter the market Kudler Fine Foods products and services will become more elastic shifting the demand curve to the left, prices will be driven down reducing profits. In the long run these reduced profits will hold until Kudler Fine Foods reaches long run equilibrium, economic profit is impossible in the long run.RecommendationsA personal recommendation for Kudler Fine Foods is to stay in the short run to broaden making the most profits. They can do this by furthering product differentiation. For example, Kudler Fine Foods can look to competitors to make sure they are not selling the same products and offering the same services. Kathy already frequently introduces new products and should continue to do this. Staying innovative will also be beneficial, introducing online sells ma y help keep Kudler Fine Foods in the short run longer.Real-world comparisons In the real-world there are many monopolistic markets like that of Kudler Fine Foods. Taylors Market is an example, like Kudler Fine Foods they offer gourmet options. Taylors Market finds its competitive edge by offering specialty items, including an onsite butcher. Both Kudler Fine Foods and Taylors Market are one of many firms in a monopolistic competition market structure. They stay competitive by offering differentiated goods and services. While both firms embark on out inelastic in the short run, in the long run they become more elastic. Below is an example of how Taylors Market and Kudler Fine Foods monopolistic competition market structure compares and differs from other market structures.