Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure positively and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the organization’s long-term profitability, and what competitive strategy recommendations may be made.
How Kudler Competes
Kudler Foods competes on a differentiation strategy. While the advertising is similar to the average grocery stores in the area, the advertising is not built on a “loss leader” criteria. Kudler Foods is one of only a few competitors in Orange County that offers a complete gourmet shopping opportunity. The company considered the greatest competition is the Cardiff Seaside Market and is in direct competition to the Encinitas and Del Mar locations. If left unchecked and depending on how effective the new managers are at strategic combinations, the competing store could negatively impact Kudler Foods market share. Something like this could decimate Kudler Foods’ customer base. Active assessment of strategy strengths and weaknesses is necessary to mitigate the challenges of this possibility.
Strengths and Weaknesses
Kudler Fine Foods marketing surveys were a clear indication of their strengths and weaknesses. Customers were happy with the displays and lay-out of the store. Customers were happy with the merchandise they purchased, even though they were not happy with the value they received for...