Strategy: Kudler Fine Foods

1832 WordsAug 13, 20088 Pages
Running Head: STRATEGY: KUDLER FINE FOODS Strategy: Kudler Fine Foods Lisa Niebruegge University of Phoenix Strategy: Kudler Fine Foods Kudler Fine Foods is an up-scale gourmet food shop that was founded in 1998 by Kathy Kudler and currently offers gourmet foods, beverages and products designed for gourmet cooking at the three stores locations in La Jolla, Del Mar and Encinitas, CA (University of Phoenix, 2007). The company has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers. Kudler is interested in adding catering to…show more content…
An upgrade to their internet website would allow customers to make purchases online for in-store pickup, local delivery or catering service. The major benefit to technology upgrades will be better customer relationships. Generic Strategy Kudler needs to develop a strategy for the company to keep it sustain profitability. The strategy will establish a profitable position against the five forces listed within Porter’s model. This strategy is important to Kudler to perform activities and services differently from their competitors. This strategy should set Kudler apart from the competition. The Porter’s model suggests the following response strategies to competitive forces: cost leadership, differentiation, focus strategy, growth strategy, alliances strategy, and customer-oriented strategy (Turban, Rainer, & Potter, 2003). A cost leadership strategy focuses primarily on “producing products and/or services that are the lowest in the industry” (Turban, Rainer, & Potter, 2003). This type of organization forms business alliances that support their inventory management through computers and computerized purchasing. A differentiation strategy focuses on being unique within the industry and provides high-quality products at a competitive price (Turban, Rainer, & Potter, 2003). These types of companies “provide their customers with a
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