Kudler Fine Foods How Does the Organization

Kudler Fine Foods How does the organization compete in the marketplace? What are the strengths and weaknesses of the firm? Kudler Fine Foods Company is dedicated to providing quality products and services to its customers. It is unique in the manner in which it delivers its products and assortments to consumers. For instance, the company stocks highly valuable gourmet products that are highly demanded by consumers. These products are unique as they are rarely offered elsewhere by competing firms.

In addition, the customer service component allows it to charge premium prices to consumers. The company supplies many of the ingredients needed to create a healthy gourmet meal. As such, consumers have access to more convenience as gourmet ingredients are only offered by a few suppliers within the market place. By offering a large assortment, and combining this offering with superior service, Kudler Fine Foods (KFF) is attracting consumer market share in a highly fragmented industry.

Furthermore, by pursuing a niche strategy, KFF is attracting and obtaining a loyal following of consumers within the industry. Achieving high customer satisfaction was the main vision for Kathy Kudler, when the business was first established. At the present, Kudler Fine Foods has managed to set up three business locations with further prospects of expansion. This expansion is also accompanied by a robust online presence, offering many of the freshest gourmet products online.

The symbiotic relationship between brick and mortar locations in combination with an online presence also allows to the company to further compete in the marketplace. A strength of the firm, as noted earlier is its niche market business philosophy. The company does not appeal to every consumer but instead appeals to a very dedicated segment of the market. In addition, through superior customer service, the company is also better able to attract a loyal following of consumers that many of its competitors cannot replicate.

An obvious weakness of the firm is its ability to attract capital to expand operations. As the company is still in its infancy, larger, more stable competitors may be able to displace it. In addition, macroeconomic concerns such as commodity prices and consumer sentiments will affect the manner in which KFF customers purchase gourmet ingredients. Based on your learning, identify the market structure that you believe best applies to this organization. How does that market structure positively and negatively affect the firm? Kudler Fine Foods operates in perfect competition markets.

In the environment of perfect competition, there is the presence of several buyers and sellers. In addition, in condition of perfect competition, markets can offer products that can serve as substitutes to the product on hand. KFF mitigates some of the concerns associated with perfect competition due primarily to its niche appeal and loyal following. Consumers recognize value and are creatures of habit. By continuing to satisfy consumer needs with niche products, consumers will naturally gravitate to KFF as oppose to competitors.

Importantly, perfect competition markets offer no barriers to entry into the market for new companies. This is particularly troublesome for KFF as it is relatively new to the industry. The more successful KFF becomes, the more likely competition will enter the market to erode company profits. This ultimately could lead to price wars that will be detrimental to the operations of KFF. For one, larger and often better financed competitors may simply lower prices to create an atmosphere in which KFF can not compete profitably.

In other instances, competitors may offer large assortment combined with lower prices for similar products. In both instances the smaller KFF will have trouble competing effectively against larger, more established competitors. Consequently, in perfect competitive markets, price of products is determined by supply and demand. Currently there is high demand for KFF products and subsequently little supply. However, as KFF begins to make substantial profits, the supply portion of the equation will increase. As more supply enters the market, prices generally drop.

KFF operates in perfect competition market because they do not have powers to leverage prices. For instance, if Kudler Fine Foods decides to increase prices, the consumers will have the option of using substitute products that are offered by competitors. A competitive market structure can however, positively affects Kudler Fine Foods. For one, due primarily to their small size, they are better able to determine customer needs to stay ahead of the market.

Perfect competition is the only way that can lead to innovation and the improvement of quality in producing fine products. By being very entrepreneurial and innovative, the company can continue to charge premium prices while staying ahead of the competition (Etro, 2009). How does the effectiveness of the competitive strategies in the market structure affect the organization's long-term profitability? Kudler Fine Foods (KFF) has been able to establish its reputation by producing quality products and providing efficient services. Branding ensures that customers associate the company with innovation and quality.

As noted earlier, consumers are often creatures of habit. If a company can consistently satisfy consumer demand, they can ultimately create a cult following that will endure for decades. Companies such as Apple, McDonalds, Coca-Cola and fashion retailers have used this strategy very effectively. The delivery of food products that are of top quality has led to higher profits because customers want value for their money. Through the superior customer service offered by KFF, consumers see value and are willing to pay more for it.

However, on the opposite end of the spectrum, a lack of innovation can lead to poor brand loyalty, thus contribute to reduced sales figures. As such the company must innovate within its niche market to remain competitive and relevant to consumers. As noted earlier, the internet also plays a vital role in the competitiveness of KFF. Internet marketing has enabled the organization to provide all the necessary information concerning products and services to customers. More importantly it has provided this information in the manner in which its consumers want.

Consumers, continually demand information on tablets, smart phones, and other devices. As such KFF is remaining relevant by having an online presence. The website contains information on the variety of the offered products, delivery details and where customers can purchase the groceries of Kudler Fine Foods. The online customer relationship management at the organization ensures that customer issues are dealt with promptly. Positioning is another competitive.