Differentiating Between Market Structures
Differentiating Between Marker Structures
Understanding how our economy operates today requires an understanding of the different market structures that make up our economy. Four market structures make up the economic structure in the worlds’ economy. The market structures are perfect competition, monopoly, monopolistic competition, and oligopoly (Colander, 2010).
Kudler Fine Foods was founded by Kathy Kudler in June 1998 after identifying a need for a gourmet specialty market in her area that could meet customers shopping needs by offering domestic and imported products in a single store. They compete in the marketplace relying heavily on the marketing surveys completed by their customers. They also operate under the best market structure they believe suits their organizational needs with consideration as to the positive and negative effects on the company, and their long-term profitability goals based on the competitive strategy they have chosen.
Business Strategies
Kudler competes under a differentiation strategy facing only a few competitors within the area. Since the inception of her first market, she has launched two additional stores throughout the Southern California area. She has maintained her sole control over the large bulk purchases, strict customer service policies, and the hiring of the best candidates that meet her level of desired expertise. She offers various classes in cooking, including monthly cheese and wine tasting. She currently offers catering to her customers as a new department for generating revenue. Some operational changes have proved to be most beneficial to their success of the stores. They increased their profitability by implementing such operational strategies, such as establishing contracts with the local producers that provide their organic produce.
Kudler advertising is not unlike other grocery stores in the area; however, they do not utilize “loss leader” pricing strategy, meaning their products are always offered
Understanding how our economy operates today requires an understanding of the different market structures that make up our economy. Four market structures make up the economic structure in the worlds’ economy. The market structures are perfect competition, monopoly, monopolistic competition, and oligopoly (Colander, 2010).
Kudler Fine Foods was founded by Kathy Kudler in June 1998 after identifying a need for a gourmet specialty market in her area that could meet customers shopping needs by offering domestic and imported products in a single store. They compete in the marketplace relying heavily on the marketing surveys completed by their customers. They also operate under the best market structure they believe suits their organizational needs with consideration as to the positive and negative effects on the company, and their long-term profitability goals based on the competitive strategy they have chosen.
Business Strategies
Kudler competes under a differentiation strategy facing only a few competitors within the area. Since the inception of her first market, she has launched two additional stores throughout the Southern California area. She has maintained her sole control over the large bulk purchases, strict customer service policies, and the hiring of the best candidates that meet her level of desired expertise. She offers various classes in cooking, including monthly cheese and wine tasting. She currently offers catering to her customers as a new department for generating revenue. Some operational changes have proved to be most beneficial to their success of the stores. They increased their profitability by implementing such operational strategies, such as establishing contracts with the local producers that provide their organic produce.
Kudler advertising is not unlike other grocery stores in the area; however, they do not utilize “loss leader” pricing strategy, meaning their products are always offered
References: Cardiff Seaside Market. (2013). Retrieved from http://seasidemarket.com/catering/ Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill Oligopoly. (2013). Retrieved from http://www.investopedia.com/terms/o/oligopoly.asp University of Phoenix. (2013). Kudler Fine Foods Virtual Organizational Link. Retrieved from University of Phoenix, ECO365 Internet/Intranet Site. Waters, S. (2013). Loss leaders using the pricing strategy. Retrieved from http://retail.about.com/od/marketingsalespromotion/a/loss_leaders.htm Whole Foods Market. (2013). Retrieved from http://www.wholefoodsmarket.com/whole-foods-market