Differentiating Between Market Structures
Principles of Macroeconomics ECO/365
June 10, 2013
Differentiating Between Market Structures in Kudler
As a hired consultant a market analysis is performed for the Kudler Fine Food Virtual Organization. To gain full review of the company's potential the organization’s strategic plan, marketing overview, customer’s views, and market surveys are reviewed. The information will allow an understanding of the company's competitiveness within the industry. The market structure that best relates to the virtual organization is revealed to access whether the organization has the ability to ...view middle of the document...
This has been done by the company expanding it services such as parties and frequent shopper programs (Apollo Group, 2011). The development of these programs will create an increase revenue and customer base. These programs have not been initiated by other food stores allowing the organization to remain in the lead by offering what the customer wants. Another way the company is competitive in the marketplace is that the owner Kathy is geared towards providing customers with new gourmet selections (Apollo Group, 2011). This allows the company to follow trends of its customers and being able to set a price on those items. By being flexible on price the company can change prices when there is need to stimulate the sales on a product? Kudler Fine Foods remains competitive in the marketplace because of its ability to be flexible and provided products and services based on customer needs.
The market surveys located on the store intranet site allows the identification of the organizations strengths and weaknesses. The organization strengths are the appearance of the store, store hours, and value of products (Apollo Group, 2011). The market survey shows high strongly agreements on the selected strengths. This shows that the company has made an appealing store and welcomes customers. This is the first step in gaining loyalty from its customers. The weaknesses that the store shows are the knowledgeable and courteous staff (Apollo Group, 2011). This is an astronomic fail on the management staff. Customers are coming to the store but can feel intimated by non-courteous staff and decide to never go back their again. Knowledge of the products that are available is a must by staff members, and at this time the market surveys found that customers did not find the staff members knowledgeable. This shows that Kudler Fine Foods must get back to the basics of the training programs. Lack of training can be why the market survey showed so low results.
Based on the information provided, the Kudler Fine Foods belongs to the oligopoly market structure. Oligopoly markets have only a few numbers of sellers in the market (Colander, 2010). Kudler Fine Foods only has a handful of competitors in the market that offers the same products and service to its customers. The market structure that the organization is involved in has negative and positive effects. The positive effects of being in an oligopoly market is that the leader in the market can drive the competition between the few companies and make massive profits by setting prices (Colander, 2010). This is beneficial during economic hardship because the company will be able to sustain itself during the recession. The profits in the oligopoly market structure allow the company to be profitable long term because the market structures are set up to not allow just any business to enter (Colander, 2010). The disadvantages of an oligopoly market structure are the prices (Colander, 2010). This does not benefit the customer...