Differentiating Between Market Structures

Topics: Economics, Monopoly, Perfect competition Pages: 4 (1163 words) Published: December 8, 2013


Differentiating Between Market Structures
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Differentiating Between Market Structures
Today’s firms operate within various environments that economists refer to as market structures. These market structures forge each firm’s operational foundation, which essentially lays the groundwork to facilitate competitive marketing strategies. The factors that bolster a firm’s marketing tactics are vital is sustaining profitability as well as solidifying longevity within a particular industry. To comprehend these factors effectively, this paper will analyze Kudler Fine Foods through the eyes of a consultant and (a) evaluate Kudler’s strategic plan, (b) identify the Kudler’s market structure, and (c) assess how the market structure positively or negatively affects Kudler’s long-term profitability. Kudler’s Strategic Plan

Kudler Fine Foods currently possess a competitive edge in the specialty or gourmet foods market as a result of their prime location and customer base; however, there is much room for improvement to sustain its operational capacity. Kudler’s strategic plan vividly highlights key areas for improvement as well as potential risks that could hinder long- and short-term strategic objectives. In each of Kudler’s three locations, potential competitors exist that could easily hi-jack their customer base in the long-run if changes are not made to address some weaknesses. Strengths and Weaknesses

Although the strategic plan highlights known weaknesses, it also illustrates strengths that equally benefit the establishment. In particular, no direct competition gives Kudler the capability to increase revenue and pursue expansion opportunities (strength). Currently, Kudler is optimally competing in the market, which is primarily because of its La Jolla location. The customer base in that location possess the financial resources (median income) to purchase gourmet food items with elevated prices whereas the Del Mar and Encinitas...

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