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Kudler Strategy

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Kudler Strategy

As described in the Kudler Fine Foods Simulation, Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan area. The company has three locations (La Jolla, Del Mar and Encinitas). Each store has approximately 16,000 square feet of retail space located in a fashionable shopping center (University of Phoenix, 2004). The stores are stocked with the very best domestic and imported foodstuffs and divided into five departments consisting of a fresh bakery and pastries, fresh produce, fresh meat and seafood, condiments and packaged foods and lastly cheese's and specialty dairy products. Kudler Fine Food’s mission is to provide their customers with the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment (University of Phoenix, 2004). Kudler’s mission requires KFF to manage a strategy with elasticity to so the organization can adapt to market strategies being developed based on analysis of current internal and external influences impacting the company. Strategic management involves the major decisions, business choices, and actions that chart the course of the entire enterprise. It consists of analysis of the internal and external proper analysis and implementation will provide a successful strategy resulting in a sustainable competitive advantage (Gomez-Mejia & Balkin, 2002).

Technology Driven Business Opportunities

Changes in technology have allowed Kudler Fine Foods to develop additional business opportunities. Recognizing and seizing the proper time frame to implement and make good use of these new technological advances permits Kudler to expand the organizations current customer potential by providing services to customers and suppliers, with the specific intent of beating competitors. The implementation of Internet based online technology, Kudler’s HTML Web page, has enhanced the organizations opportunity to increase the companies customer/supplier base by allowing these individuals to gain information about KFF’s services and products from the comfort of their homes/offices. The employment of this Strategic Information System is helping Kudler change the way it does business. The system is outwardly focused, aiming at direct competition, with the introduction of organic fruits and vegetables, and a catering service to beat the competition with offerings. The system is also inwardly focused through the improvement of the efficiency of the operation (Turban, Rainer, & Potter, 2003). The Internet has provided Kudler with a new portal that leads to current and new customers. This information will permit KFF to also monitor the performance of their competitors. Research indicates that the percentage of companies using IT to support competitive intelligence increased from 31% in 1993 to about 50% in 1999. This increase is due primarily to the use of the Internet (Turban, Rainer, & Potter, 2003). The Internet allows anyone involved in the organic food industry to gather information on current products and trends. This information can help put Kudler at the forefront of the competition.

Kudler’s Generic Strategy

Porter’s competitive forces model is a valuable asset that allows a company to analyze competitiveness. Gaining and retaining a competitive and strategic advantage requires a company to develop a proper strategy. A company needs to develop a strategy of performing activities differently from its competitors (Turban, Rainer, & Potter, 2003). Porter has identified generic strategies that have been used to develop corporate strategies implemented to increase their competitive edge. A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus (QuickMBA, 2007). Kudler Fine Foods has continued to a use a combination of the generic strategies. KFF has in a sense attempted to achieve an advantage on a couple of fronts by employing a hybrid focus strategy and differentiation strategy by concentrating on the organic segment of the produce industry. Kudler offers products and services that offer unique attributes valued by organic customers perceiving KFF to be better than or different from the products and services provided by the competition. The organization has attempted to achieve a cost advantage using these strategies by entering into contracts with local organic produce providers. A firm using a focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms from competing directly (QuickMBA, 2007). The focus strategy contains

Tactics Needed to Implement

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