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Strategy Assignment

Essay by   •  January 9, 2011  •  1,526 Words (7 Pages)  •  1,174 Views

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Kudler Fine Foods is company that provides customers with a one-stop shop for gourmet foods. There are three locations located throughout the San Diego area. Kudler needs to keep their employees in high spirits and customers happy to remain competitive by continuously updating their technology and using the correct organizational strategy to help them to remain successful. This paper will assess how changes in technology have created business opportunities for Kudler and observe the generic strategy that Kudler is pursuing. This paper will also examine the tactics that Kudler will use to implement the strategy and how KudlerпÑ--Ð...s management will continue to scan the fine foods industry to maintain the competitive advantage.

Changes in Technology

Kudler Fine Foods realizes that they have to keep updating their technology to remain successful in the gourmet foods industry. Kudler needs to modernize the internet website that is available for its customers. The current website gives a brief description of the company, the locations of the three stores, the hours of operation, and a description of the products that Kudler offers. Kudler Fine Foods can monitor the activities of its competitors to increase its competitive intelligence.

Kudler can observe the website for Dean and Deluca at www.deandeluca.com for ideas on updating their website. Dean and DelucaпÑ--Ð...s website offers a list of the products offered along with prices and gives the customers the ability to order them from the website. Dean and Deluca also provide customers with the opportunity to order catering services online and let customers track the status of their orders. An important detail that Dean and Deluca give customers is the ability to sign into the website under their own user name and password when ordering merchandise. Kudler will be able to attract more consumers and expand their business by including some of these ideas on the website.

пÑ--Ð...Consumers want more and more control. They want to be treated as individuals, not as consumers. They want more and better information to guide their decisions.пÑ--Ð... (Sakkab, 2007, pg. 62) Kudler can use their website to advertise their products and attract customers from abroad. Consumers enjoy the fact that they can purchase products on the internet in the privacy of their own home. They also appreciate websites that are secure and protect them from identity theft.

Kudler must be aware of updating their technology but they must not forget about their main purpose. пÑ--Ð...Years ago, the sole driver used to be technology; today, superior technology is still a must but it's also about design; it's about sensorial elements; it's about cost; it's about the processes by which you make the product; it's about the business models you use.пÑ--Ð... (Sakkab, 2007, pg. 59) A company can have more innovation and technology in comparison to all of its competitors and fail if it does not please its customers. пÑ--Ð...It's all about creating a superior, holistic experience for the consumer, and that comes from truly understanding what the consumer needs.пÑ--Ð...

Generic Strategy

Kudler can use PorterпÑ--Ð...s Five Forces model to determine which generic strategy to pursue to stay ahead of their competition. These five major forces can endanger KudlerпÑ--Ð...s position in the gourmet food industry if the company does not focus on them. пÑ--Ð...The forces consist of the threat of entry of new competitors, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services and the rivalry among existing firms in the industry.пÑ--Ð... (Turban, Rainer, and Potter, 2003, pg. 6)

Kudler can пÑ--Ð...establish a strategy aimed at establishing a profitable and sustainable position against these forces by identifying them.пÑ--Ð... (Turban, Rainer, and Potter, 2003, pg.7) Kudler can use the differentiation strategy because it has always implemented that strategy in the past. Kudler has always been unique by providing high quality products at competitive price. Kudler can provide organic produce and position themselves ahead of other gourmet food shops in their surrounding areas. Offering catering services and giving customers the ability to order products over the internet also helps Kudler to use the innovation strategy because it gives them new ways to produce and sell their products. Kudler is also continuing to innovate by offering free cooking classes to customers. Kudler can also use benchmarking by observing other gourmet food companies and understand the processes they use to continue to be successful.

Identifying Tactics

Kudler will need to implement tactics to employ their differentiation strategy. Kudler can block entry of new competitors by providing entry barriers through controlling distribution channels and weaken the power of suppliers by implementing supplier-sourcing systems. Supplier sourcing benefits Kudler because it gives them a surplus of suppliers to obtain products. If one supplier is charging more money for a product because it is out of season, Kudler will use the supplier-sourcing system to find another supplier that can offer the same product at a lower price. If the buyers bargaining power is strong, Kudler will differentiate their products by offering items the other gourmet food stores are not able to offer. Kudler will have a few of their frequent buyers promote their organically grown oranges in a television commercial. Kudler will reward these customers by giving them the maximum amount of rewards point in a fiscal year. This will entice consumers to try their organically grown oranges and reduce their bargaining power.

The differentiation strategy also helps Kudler to fight the threat of substitute products. Substitute products might be less expensive, but consumers will pay more money for products that are rare and hard to find. Kudler also needs to

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