Differentiating Between Market Structures Essay

Kudler very well Foods is the brain squirt of Kathy Kudler. She envisioned a one stop fodderie food store and has grown to three locations to date. She continues to have got direct control over large intensity purchase order items, stringent customer attend to policies, and hiring. This paper discusses how the organization competes in the martplace and the strengths and weaknesses of the alliance according to the commercialiseing surveys their customers completed. The following also discusses which marketplace structure crush applies to the organization and how that structure substantiatingly and negatively affects the firm, how the effectiveness of the belligerent strategies in the market structure affect the organizations long- edge profitability, and what competitive strategy recommendations may be made.How Kudler CompetesKudler Foods competes on a differentiation strategy. While the advertising is quasi(prenominal) to the average grocery stores in the ara, the adv ertising is not built on a loss attraction criteria. Kudler Foods is one of only a a few(prenominal) competitors in Orange County that offers a complete gourmet obtain opportunity. The friendship considered the greatest competition is the Cardiff Seaside securities industry and is in direct competition to the Encinitas and Del Mar locations. If leave unchecked and depending on how effective the new managers atomic number 18 at strategical combinations, the competing store could negatively meeting Kudler Foods market shargon. Something like this could decimate Kudler Foods customer base. sprightly assessment of strategy strengths and weaknesses is necessary to mitigate the challenges of this possibility.Strengths and WeaknessesKudler very well Foods marketing surveys were a clear indication of their strengths and weaknesses. Customers were clever with the displays and lay-out of the store. Customers were happy with the merchandise they purchased, even though they were not happy with the value they received for their money. Customers were practically collapse down the middle nearly how they felt about the customer work they received. That sentiment is not a reflection on how completeledgeable the customer help person was since customers overwhelmingly voted positively when asked that question. Overall, the customers felt satisfactory about the organization, how the company is branding itself as a premier gourmet market, the quality of the products and the k like a shotledge aim of the service representative.Best Market StructureThe best market structure for Kudler Foods is oligopoly. Oligopoly, as defined by Colander (2010), A market structure in which there ar only a few firms and firms explicitly take other firms likely receipt into account there are often evidential barriers to entry. Oligopoly requires strategic thinking. A real life company that has the same market structure as Kudler Foods is unit of measurement Foods Market. Whole F oods Market carries specialty, gourmet food items, meats, wines, cheeses, and intensity food stuffs. Whole Foods Market also offers food and wine tastings, and attracts a wealthier clientele who fancy themselves as gourmet foodies. A large portion of their farm animal is organically produced. Their customer service levels are a argue of great pride as they know it is not just the food still the service that keep customers coming back. (Whole Foods Market, 2013) There are however, positive and negative effects of this market structure.Positive and blackball EffectsA negative effect of oligopoly is that it is mostly inefficient economically and in productivity. What this means is that oligopolies do not produce in the most chinchy manner nor do they produce the right summate of products according to demand. A positive effect of this market structure is the overall profits. These profits, for the growth purposes of Kudler Foods, could be utilise for technological advances so they may offer modify products, costs, prices, and award them to stay ahead of the competition now and in the coming(prenominal) to detect long term profitability.RecommendationsA firm recommendation is further drag employees to enrich operations and increase customer service. Employees are for certain knowledgeable, as per the marketing survey results, but could use some additional training in increasing customer service skills. This could be all over by hiring an expert in the field to decrease in and teach service skills to the employees. To arrest the skills are used, Kudler Foods could tie a small part of the employees compensation to sincere reports from customers.In addition, Kathy Kudler is making plans to record new e-commerce capabilities as well as a catering link on the new website slated for set in June 2004. These steps leave alone add mechanisation to inventory ordering and reach potential customers outdoor(a) of the geographical area they currently serv ice (Kudler Fine Foods Administration Strategic Plan 2003, 2013). The use of e-commerce will showcase strengths and perhaps give sustained competitive service. This new automation will also allow cash flows to go to the geographical expansion Mrs. Kudler wishes to strive rather than operations functions.ConclusionThe main point of this paper was to offer a market summary for Kudler Foods and offer recommendations based on that analysis. Commitment to strategic plan, both in formulation and implementation are vital. As with any plan, simply formulating a good strategy is not enough. Managers also must ensure that the new strategies are implemented effectively and expeditiously (Bateman & Snell, p. 150, 2011). Given the current circumstances, Kudler Foods has an excellent opportunity to maintain the positive cash flow it has been earning. If Kudler Foods will coincide that strategy formulation, implementation, and technological advances are essential to securing future significan t returns, Kudler Foods will ensure continued succeeder by creating a connection between increase customer service, an internet presence, automated ordering, customer purchasing habit tracking, and customers lives. The sustainable competitive strategic advantage that Kulder Foods wishes to maintain and elongate will most certainly be realized.ReferencesColander, D.C. (2010). Economics (8th ed.). Retrieved from The University of Phoenix eBook Collection database. Bateman, T. S., & Snell, S. A. (2011). focal point Leading & Collaborating in a Competitive humanness (9th ed.). Retrieved from The University of Phoenix eBook Collection database Whole Foods Market, Mission & set (2013) Retrieved from http//www.wholefoodsmarket.com/mission-values Kudler Fine Foods Administration Strategic Plan 2003 (2013). 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