Kudler’s has an inventory that consists predominantly of perishable goods that require replacement often. Kudler’s could cut costs and leave items on the shelf a day or two longer, but that would call into question their very reason for existence in being known for fresh foods. Reputation with customers can be lost with one poor decision. One way to counter that is to provide exceptional customer service. Kudler’s means of differentiating itself from the competition is its ability to provide the best products and the best customer service.
They should utilize their space in each store efficiently. As we know that Costco is struggling with making profits, so they could improve their profitability by allowing business to rent their space in the stores. For example, they could allow banks to rent their space. People who are going shopping at Costco might need to do some financial transactions and they might need to get cash from the banks or ATM. Moreover, it will be a good opportunity for fast food business such as Burger King, McDonald, and Subway.
The people greeters at Wal-Mart stand in front of the doors to greet people in a very friendly way as they are coming into the store. I think is good because it makes many people feel welcome into the store. The very cool thing about Wal-Mart is that if you find something let’s say a pencil eyeliner cheaper somewhere else then Wal-Mart, Wal-Mart will even out the difference at the cashier .The only upside down to Wal-Mart is that they have very low boring advertisements, it’s almost as if they don’t want to announce all the good low prices that they have. Unlike Wal-Mart, Target connects with the costumers though colorful advertisements and attractive displays. These displays and advertisements really makes people want to come in and check out the deals that they have seen on those advertisements, so Target really drags people into their stores.
A monopolistic Competition market has many sellers and provides good substitutes but differentiates their products from other companies. The nature of competition in a monopolistic market focuses on marketing, special features and pricing (Colander, 2010). Kudler Fine Foods has only a few competitors in the market that offers the same products and service to its customers. This market structure has negative and positive effects. A positive effect of Kudler Fine Foods in a monopolistic market structure is that they lead in the market and can increase competition between companies and make massive profits by setting higher prices (Colander, 2010).
Through obtaining products directly from local farmers would also lower shipping costs, thus satisfy customer requests, and contribute to the local community, while continuing to be profitable. Consumers still experience a limited product selection during the season, but the overall satisfaction during the peak times will help sustain customer loyalty. As season products change, the employees should stay current as to what products will be available, and when shipments arrive. The more knowledgeable the employee is, the more trust the customer will have in the business as a whole. Empowering employees with experience will allow them to help the public successfully resulting in an overall customer service experience that will set them apart from other local grocery store chains.
When Kudler makes business improvements, it causes their competitors to either imitate them or get out of the business. Some negative effects a monopolistic competition has on Kudler Fine Foods is that in the long run, profits even out and the company will maintain equilibrium. Entry to this industry is relatively seamless. As new competitors enter the market, the demand curve shifts to the left which thereby reduces economic profit. Productive efficiency is absent in the monopolistic competition.
("Store Wars," n.d., Big store, business practices section, para. 1).The low prices may be great for the economy, but that's about all walmart is doing for America. For people who work at Walmart, in order to make ends meet, they usually have to work at two different jobs. Their significant other usually has to work, too. Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010).
When looking at the bottom line, this practice takes an employee away from working the register or counter as well as increases the costs associated with providing goods for no profit. As a manager, I support Kudler’s practice of offering the samples. I see that it makes the customers happy and our employees get to know members within the community. The event offers more social interaction than a traditional grocery store could offer. Although it may cost most to staff this event, my values and ethics tell me I should concentrate on what is most beneficial to my employees and my customers.
Also, buying healthier snacks may not taste as sweet as donuts or cakes but they do cost less. Students who decide to buy apples and oranges will save a few dollars, compared to those students who are buying donuts and cakes, because the money will start to add up more than they think it will. Making decisions such as eating healthier will also keep students healthy thus providing them with the nutrients to think and perform better during class. My aunt introduced an idea to me which makes sense and also saves money. The idea is called “Pot-lucking”, this is where people from the same dorm or floor puts money together and buys food for all students on the floor one week, and then the next week a different room has the same plan.
Advertising of fast food keeps costumers wanting more and more. Anytime costumers see the satisfying sandwich, instantly their mouth waters for the taste of it. Local grocery stores and convenient shops have ads and coupons from the local fast food franchises. The coupons increase the costumers appeal to the restaurant because of a possible discount and full belly. The situation is very ironic because the grocery stores with nutritious food advocates for fast food restaurants that are, in context, competing with their sales.