Differentiating Between Market Structures in Kudler

Differentiating Between Market Structures in Kudler

Kudler Fine Foods was founded by Kathy Kudler in La Jolla, California in 1998. (Apollo Group Inc., 2011). She had great success with her first store that she decided to open two more stores in California. Kathy's vision was to own upscale food stores. This vision came from Kathy's love of cooking. Kudler wanted to make it easy for those that shared her love of cooking to find ingredients they needed all in one place. The first store Kathy opened made a profit within the first year and was very successful.

In this paper I will discuss evaluate the differences between market structures, review the organization's strategic plan marketing overview and other material to evaluate the organization's competitiveness in the marketplace. I will also identify the market structure that I believe best applies to Kudler Fine Foods while assessing how the market structure positively and negatively affects Kudler Fine Foods long-term profitability. Lastly, I will identify the strengths and weaknesses of the Kudler Fine Foods as indicated by the marketing surveys completed by their customers. I will also recommend competitive strategies for Kudler Fine Foods.

Kudler Fine Foods belongs to a monopolistic competition market structure because their competition includes a significantly high number of companies selling very similar products. Initial startup costs are high but there are little to no barriers if someone wanted to start a business in this market. According to Colander, there are multiple dimensions of competition market structure including distribution outlets, advertising, and product attributes. A monopolistic competitor cannot make long-run profit (Colander, 2010). One benefit of belonging to a monopolistic competition market is the capability to accommodate customer needs as well as the economy. Kudler Fine Foods has strategies in place to use the monopolistic competition market behavior to their advantage which will aid them in gaining an advantage over the competition.

Due to the few barriers for new businesses, the monopolistic competition market structure means that Kudler Fine Foods could have multiple competitors. Their current competitors include supermarkets, health food stores and gourmet food stores. In order to keep one step ahead of their competition, Kudler Fine Foods should keep up to date on sales or specials their competition is having. Looking at a competitor's sales flyer can help Kudler Fine Foods stay current and competitive with their prices. Offering to accept competitor's coupons will allow Kudler Fine Foods to reach out to new customers and keep their current customers returning to their store.

The most important asset to a business is its customer loyalty. In order to reach their target audience, Kudler Fine Foods has to maintain competitive pricing and expand their business to selling their products on the Internet. They can also use this website to promote their sales in the stores and promote their catering service. This will target men and women that work full time since shopping will be easier online, allowing working adults the convenience to pick up their items in the store at their convenience. Kudler Fine Foods should look at expanding their brick and mortar