These products also have numerous options from which to choose. Because they offer a multitude of brands for a majority of their items, this tends to initiate competitiveness between product manufacturers. This competition results in lower prices that are passed down to consumers. In contrast, Publix’s primary focus is being a grocery store. They offer limited choice options for most of their grocery items, sometimes as few as only two brands.
For example, they normally purchase a big number of merchandises from original manufacturers so they will be able to purchase it in very low prices. Then, people who would like to buy their products have to sign up to be store membership. The companies such as Sam’s Club, BJ’s Wholesales Club, and even Costco will allow just memberships to buy the products in low prices.
Market structures are referring to “the physical characteristics of the market within which firms interact,” (Colander, 2010). Monopolistic competitive are markets in which there are large amounts of firms selling differentiating products and there are few barriers to enter. Kudler Fine Foods falls into this category because there are numerous different grocery stores; however, they have a variety of different goods. Kudler Fine Foods would be competing against other fine food stores like Whole Foods, Trader Joes, and World Market. For Kudler Fine Foods to fall into this category means that they sell differentiating products from their competitors.
Money Faye West XECO/212 February 08, 2015 Audra Sherwood Money Money is something that we use every day and is very valuable in our life. Money serves as a medium of exchange, Money serves as a medium of exchange, a unit of account, and a store of value. Medium of exchange is the way that most people use money. Money is used in exchange for goods and services. When I go to the grocery store, I may fill my buggy with many different types of items.
They are a discount store with some locations offering grocery items as well. The particular store that I am discussing is strictly a discount store. K-Mart is owned by Sears Holdings Corporation. Sears Holdings Corporation lists their Vision as the following: “We are committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships.” Their Mission is to: “Build customer relationships, make more money and improve every day.” Although, K-Mart/Sears Holdings states these as their Vision and Mission, I have found that at their stores they may have not read the statement. During the past few months I have visited K-Mart many times to make purchases as the location is very close to my employer.
There is currently one major competitor in the specialty foods business is the chain Whole Foods. The foot print of Whole Foods is so large and has a larger market share than Kudler, they would be able to cut into Kudler’s competitive advantage of being the only specialty food store within their operating locations. There are more super chains such as Wal-Mart are starting to carry organic foods at their notoriously low prices. Wal-Mart is not only starting to offer organic items, but they are saving money by doing it. “By distributing locally, [Wal-Mart] said it saved 112,000 gallons of diesel and total freight expense of more than $1.4 million” (Hoffman, 2008, p. 1).
Because of their location and the types of food that they specialize in there is not much direct competition. All three of Kathy’s stores are surrounded by many supermarkets such as Albertsons and Vons. These stores do not directly compete with Kudler’s because Kudler’s target market is those who see themselves and a distinguished gourmet. There are several international food stores close to the Kudler Food locations but these stores are also not directly a threat to their competition because, although they all carry similar ingredients, Kudler’s customers come to them for the selection, tools, and expertise. The Harvest Ranch Markets provoke some competition because they are closely located to Kudler’s locations and they offer similar products such as organic foods and an extensive selection of wines and deli.
Business Models and Systems Jessie Brown BUS/210 August 1, 2014 Business Models and Systems A local business that I frequently use is called Rouse Supermarket which is a locally owned chain of grocery stores. Rouse differs from the big supermarket chains by offering locally grown fruits and vegetables, Louisiana seafood, meats, and dry goods. This grocery store is well-known for the freshness of their products and excellent customer service. Although their prices may be a little more expensive than their competitors, the company prides itself on providing fresh and local products. The company supports other local businesses by purchasing from local vendors.
Food is donated from hospitality schools and a system called the ‘Food Bank’ – boxed or canned foods and other produce donated by major companies/stores such as Coles and Woolworth’s. If there are nil food donations the centre has an account with a large wholesaler for food products. Staff fax through an order and the food is delivered, so the homeless will not go without. Streetlevel Foodmarket – The Streetlevel Food Market which opened on the 21st October 2005, resembles a mini mart where those who are disadvantaged can purchase goods via a barter system including the use of food vouchers offered by the
In May last year it was said that Morrison’s is putting into place a network of lockers to its stores that will allow shoppers to pick up click-and-collect parcels. Once again Morrison’s is putting this into place to compete with the other big supermarkets. The first Morrison’s collection point is already operating at the store on Dewsbury Road in Wakefield but it is still a process with a lot of progression to go. Having a click collect system in place is an advantage for Morrison’s as again it is now like the other four supermarkets as they also have the click and collect scheme but it is also an advantage for regular customers at Morrison’s as they can order stuff online and just pick it up in store this also saves customers delivery costs. Overall Morrison’s have responded to their competitive pressures fairly well however there are also some disadvantages this includes the time in which they entered the online grocery market and the risk they took on comparing prices with stores such as Aldi, furthermore with recent news it is clear Morrison’s have not been making consistent profits therefore this shows some of their strategies to not be so