Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
While Wal-Mart's methods are under scrutiny for the seeming forceful nature, but in reality they just have the power to push suppliers around and pressure small businesses to the brink. The retailer is brutally honest and straight forward about what they need and what they can get in their business ventures. Wal-Mart creates low prices by the threat of outsourcing and pitting suppliers against each other. If a supplier wants to change the terms of their agreement with Wal-Mart, they will simply be shoved aside and replaced by someone who will do what Wal-Mart wants. In order for small businesses to really gain an edge they have to diversify their products and exploit local suppliers, cash in on the advantage of a better enhanced customer experience, and with interaction within the nearby communities.
The strengths of the company are beneficial for sustenance; however, the weaknesses could pose a threat to the company’s long-term viability and its desire to remain a leader in the region. The structure of Kudler is a monopolistic market structure because there are many stores offering similar products, but differentiated. If Kudler Fine Foods implements the recommendations, it can continue the substantial lead it has in the market as well as expand to become a nationally recognized
Company Q’s current mind-set on social responsibility appears to be quite negative, uninformed, and antiquated. It would appear that the company chose to close stores in high risk areas without first investigating how they could provide service to this under-served segment of society while still maintaining a profit margin and ensuring the safety of its employees. The company’s veiled attempt to make quick profits by providing only a small, high margin sampling of the customer requested health-conscious or organic products has likely served only to alienate and diminish their customer base. Lastly, the company’s response to the local food bank’s request for donations appears to a feeble attempt to create a valid reason to avoid the extra work that may have been associated with this endeavor. This response likely had the added effect of offending their employee base by suggesting that their employees would utilize the program to steal from the company.
They will regular have special offers on within stores around the country also. Tesco’s sales promotions are the Clubcard points and school tokens. The Clubcard points try to make shopping better for their customers. This type of promotional technique attracts the customer who is looking for discounts and other types of saving options. The school tokens are a good sales promotion because to get this sales promotion you have to buy products from the store to a certain price.
A potential opportunity that they could explore is to utilize self-checkout terminals in their locations. Self-checkout point of sale terminals could do many things to improve Kudler Fine Foods as a retail competitor. First, it would improve their customer service as many customers prefer to check themselves out rather than having a cashier. In today’s technology environment, “…systems can be tailored to better fit any retail environment and are more focused on improving customer service rather than cutting labor costs” (Murphey, 2009, p. 1) . Even though the prime focus of these systems is not necessarily to cut labor costs, often times they can improve efficiency.
Many of the positions are part-time, therefore, they are positions without benefits. By shopping at Walmart, Americans are supporting China. When Walmart opens new stores, they often cause the closing of other stores, and upset the balance of prices in the neighborhood. "Critics believe that Wal-Mart opens stores to saturate the marketplace and clear out the competition, then closes the stores and leaves them sitting empty." ("Store Wars," n.d., Big store, business practices section, para.
While theft and low income consumers bring the possibility of providing only moderate revenue gains, if not a loss, operating in impoverished areas can also be a source of growing potential for the business. Many companies advertise philanthropic missions, such as donating to charities every year or helping to provide for the families of their employees. While these are messages that consumers hear, a more powerful message can be the one that the consumers themselves see. Rather than closing down those stores, Company Q should focus on the reasons for the high crime, and offer ways to reduce that crime rate. Offering work programs that help prepare young people for management or skilled positions is a good way to take crime off of the streets while showing to the community that the business cares about the welfare of the population.
Company Q was not being socially responsible when they closed two grocery stores that were located in the same general area of the city, they did not show a commitment to their employees and the community? When they closed their doors, that meant jobs were lost in the community, this instinctively brings anger towards the food chain. Company Q should have seriously considered what these closures could do to their reputation. Through the years, Company Q was not being socially responsible when they didn’t listen to the customers about stocking healthier foods and organic products. Company Q eventually listened and brought in a limited selection of products, but the customers found them to be to expensive to purchase.
This is harmful for our economy. Our economy is based on competition. Any monopoly is not good. Their low prices affect neighboring stores that cannot maintain the “Wal-Mart” prices. This is also an example of how Wal-Mart is getting rid of jobs.