Kudler Fine Foods: Strategy - Changes Create Opportunities

Kudler Fine Foods: Strategy

Strategic technological changes can revolutionize a company's business practices. The impact of these changes "can be so large that a failing system may force organizations to go out of business, whereas successful systems may place a company in a leading position in its industry..." (Gomez-Mejia & Balkin, 2002, p. 3). This paper will discuss how Kudler Fine Foods (KFF) used such technological changes to create business opportunities. The author will also identify the generic strategy used by KFF as well as the tactics KFF should implement in order to fully realize the strategy. It is critical for any organization to keep current with advancements within the industry. This paper will also detail the ways in which KFF management should scan, or benchmark, the industry looking for ways to improve their business processes.

Changes Create Opportunities

The use of technology has created business opportunities for companies around the world. According to UPS (United Parcel Service) (1994-2011), "in 1924 UPS debuted another of the technological innovations that would shape its future: the first conveyor belt system for handling packages" (Messenger Service, para. 10). By incorporating this technology, the company was able to greatly improve upon its daily processes allowing the company to expand. Like UPS, Kudler Fine Foods was able to use changes in technology to create new opportunities to move their business forward. Kathy Kudler intends to launch an extensive website with e-commerce capabilities (Kudler Fine Foods, Strategic Plan, pgs 15-16). One advantage KFF currently has is the opportunity to expand its catering services. Combine this opportunity with its intended website capabilities and Kudler can secure a sustainable competitive edge. According to the case study of British Airways, "those firms that can successfully implement an IT-driven innovation can gain a significant competitive advantage as first movers" (Turban, Rainer, & Potter, 2003, p. 6).

Kudler's Strategy

Upon looking more closely at KFF, one can identify several response strategies at work within the firm. These strategies are aimed at establishing a competitive edge against the forces outlined in Porter's Five Forces Model. The first identifiable strategy is the differentiation strategy. Kathy Kudler prides herself on being able to provide the finest products available at a price that is competitive in the industry. KFF also depicts a focused strategy through the development of a niche market with a differentiation strategy to compliment it. The third strategy is the growth strategy. One can see the evolution of this strategy through the introduction of the e-commerce capabilities in the new website. This will allow the firm to reach a larger customer base, thus selling more products and increasing profits. This can also be seen through the expansion of the company into additional local arenas. Another response strategy visible in the firm's framework is the internal efficiency strategy. This strategy involves the improvement of the daily processes within the firm. These improvements lead to increased customer satisfaction. The most visible strategy at work within the firm is the customer-oriented strategy. This strategy can be seen in all aspects of the business including in their mission statement. "Our selections, coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing" (Kudler Fine Foods, Our Mission, para. 1). Part of the delightful and pleasing shopping outing mentioned in the mission statement comes by way of the new POS machines that track the purchasing trends of the customers, allowing KFF staff to offer future shopping suggestions to the customer. This provides a very personalized customer experience; one not often seen with other grocers. It is the combination of these strategies that will catapult a company to the front of the industry.

Full Realization Tactics

In order for KFF to realize full implementation of a new strategic plan, all of the management staff must have an extensive understanding of both the process of creating the plan as well as the implementation of it. The management team must set a goal for the new plan. What are the current problems facing the company and what does