Market Structures
Essay Preview: Market Structures
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Kudler Fine Foods is a local food store that specializes in epicurean food in the San Diego metropolitan area. They specialize in bakery and pastry items, fresh meats, seafood, produce, packaged foods, specialty dairy products, wine and spirits, and much more. In their mission, Kudler Fine Foods vouch that they shop all around the world for their products and they choose only the finest. In addition to their gourmet food, the founder Kathy Kudler who was once a Vice-President of Marketing of a different, liked to cook gourmet meals. She got the idea that the San Diego metropolitan area needed a gourmet food store. She put together a business plan and opened the first Kudler Fine Foods in La Jolla, CA in 1998. Additionally, that store was profitable and she opened her second store by 2000 in Del Mar, then a third one by 2003 in Encinitas. In the following paragraphs, I will apply microeconomic concepts toward the competitive strategies of Kudler Fine Foods that affect its long term profitability. Additionally, I will evaluate Kudlers competitiveness in the marketplace, including its customers views. In this same process, I will identify the market structure that I believe best applies to Kudler Fine Foods, and assess how the market structure positively and negatively affects Kudlers long-term profitability.
How Kudler competes in the marketplace
Kudler Finer Foods is one of the only few competitors who offers gourmet foods in Orange County. They compete by giving shoppers a complete gourmet shopping opportunity. Additionally, Kudlers compete on a differentiating strategy, and they do this by advertising their products in the local newspapers. A way Kudler stores satisfies customers is to have a selection of gourmet foods that changes with demand. Therefore, when new products come into focus of the customers Kudlers will have it available. For example, Kathy is sure to observe what other gourmet food stores are offering, she checks out gourmet conventions, and websites. In addition to that, she also looks at gourmet magazines for what is being advertised.
Strengths and weaknesses indicated by the marketing surveys
The strengths of the firm according to Kudler (2013) are having a small organization, having convenient store hours, and the atmosphere and décor is appealing. On the other hand some of the weakest categories are the merchandise sold is not a good value for the customers money, having a good selection of products, and the customer service representatives were not very courteous and knowledgeable. Last but not least, more than 25% disagreed about overall satisfaction.
The market structure that best applies
The market structure that best applies to Kudler Fine Foods is “monopolistic competition”. This is said because some of the characteristics for monopolistic competition are the nature of the