Differentiating Between Market Structures Essay

Kudler pretty Foods is the brain child of Kathy Kudler. She envisioned a one stop epicure diet store and has grown to three locations to date. She continues to produce say assure over spectacular bulk purchase order items, stringent node renovation policies, and hiring. This root word discusses how the arranging competes in the food food merchandiseplace and the strengths and weaknesses of the company accord to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure cocksurely and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the organizations long-term profitability, and what competitive dodging recommendations may be made.How Kudler CompetesKudler Foods competes on a differentiation strategy. While the publicise is similar to the average grocery stores in the atomic number 18a, the advertising is n on strengthened on a loss leader criteria. Kudler Foods is one of only a few competitors in Orange County that offers a complete gourmet shop opportunity. The company considered the greatest competition is the Cardiff Seaside Market and is in direct competition to the Encinitas and Del Mar locations. If left unchecked and depending on how effective the unsanded managers atomic number 18 at strategic combinations, the competing store could negatively impact Kudler Foods market shargon. Something like this could decimate Kudler Foods customer base. Active assessment of strategy strengths and weaknesses is indispensable to mitigate the challenges of this possibility.Strengths and WeaknessesKudler Fine Foods marketing surveys were a clear indication of their strengths and weaknesses. Customers were beaming 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 hold dear they received for their money. Customers were practically split down the middle about how they mat up about the customer service they received. That sentiment is not a locution on how knowledgeable the customer service person was since customers overwhelmingly voted positively when asked that question. Overall, the customers felt good about the organization, how the company is branding itself as a premier gourmet market, the quality of the products and the knowledge level of the service representative. stovepipe Market StructureThe best market structure for Kudler Foods is oligopoly. Oligopoly, as delimit by Colander (2010), A market structure in which on that point are only a few firms and firms explicitly take another(prenominal) firms likely response into account there are often significant barriers to entry. Oligopoly requires strategic thinking. A real life company that has the same market structure as Kudler Foods is Whole Foods Market. Whole Foods Market carries specialty, gourmet food items, meats, vinos, cheeses, and bulk 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 gunstock is organically produced. Their customer service levels are a point of great pride as they know it is not upright the food but the service that keep customers coming back. (Whole Foods Market, 2013) There are however, positive and negative effects of this market structure.Positive and Negative effectuateA negative effect of oligopoly is that it is largely inefficient economically and in productivity. What this means is that oligopolies do not produce in the most threepenny manner nor do they produce the right amount 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 used for technological advances so they may offer improved products, costs, prices, and accomm odate them to stay ahead of the competition now and in the future to maintain long term profitability.RecommendationsA firm recommendation is further necessitate employees to enrich operations and increase customer service. Employees are certainly knowledgeable, as per the marketing survey results, but could use some additional schooling in increasing customer service skills. This could be accomplished by hiring an expert in the field to come in and teach service skills to the employees. To ensure the skills are used, Kudler Foods could tie a small part of the employees compensation to good reports from customers.In addition, Kathy Kudler is making plans to introduce rude(a) e-commerce capabilities as well as a catering link on the new website slated for launch in June 2004. These steps leave add automation to inventory ordering and reach potential customers outside of the geographical area they soon service (Kudler Fine Foods Administration Strategic Plan 2003, 2013). The us e of e-commerce will showcase strengths and perhaps give sustained competitive advantage. This new automation will also allow cash flows to go to the geographical blowup Mrs. Kudler wishes to achieve rather than operations functions.ConclusionThe main point of this paper was to offer a market analysis 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 efficaciously and efficiently (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 accept that strategy formulation, implementation, and technological advances are essential to securing future significant returns, Kudler Foods will ensure continued supremacy by creating a conne ction between increased customer service, an net presence, automated ordering, customer buying 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). Management Leading & Collaborating in a Competitive World (9th ed.). Retrieved from The University of Phoenix eBook Collection database Whole Foods Market, Mission & value (2013) Retrieved from http//www.wholefoodsmarket.com/mission-values Kudler Fine Foods Administration Strategic Plan 2003 (2013). Retrieved from https//ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler2/intranet/strategic-plan.asp