Gene One Problem

Kudler Fine foods Strategy

Kudler Fine Foods is a specialty food store with locations in La Jolla, Del Mar, Encinitas, California. In 1998, Kudler Fine Foods was started by Kathy Kudler. Kathy Kudler is an entrepreneur who is passionate about gourmet cooking. “Her vision was to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want. Kathy was certain that combining the convenience of one-stop shopping with reasonable prices would be a recipe for success.”(University of Phoenix, 2007). Kudler has recently added catering services in efforts to attract new customers and increase its profits. The company has also made some operational changes that will be valuable for the success of the stores. These operational strategies like creating a purchasing department, establishing contracts with local producers of organic produce and the use of marketing tools will increase productivity for Kudler. Following is identified the business opportunities created due to the changes in the use of technology, the generic strategy of Kudler Fine Foods and tactics to implement those changes.

Change in Technology

Kudler will have an opportunity to grow by implementing modern technology to reach its customers. Kudler is already using Intranet to record sales and inventory, supply chain, employee handbook, and past financials. Kudler is using internet as well, to provide general information to customers about its products, store locations, and the hours of operation. Kudler must be aware of updating their technology to remain competitive. Kudler must use Strategic information systems (SIS s) which are systems that support or shape an organization's competitive strategy. An SIS is characterized by its ability to significantly change the manner in which business is done. The four major roles in Information Technology are: The first being information technology creates applications that provide direct strategic advantage to organizations, second, it allows efficient decentralization by providing high-speed communication lines, and it streamlines and shortens product design time with computer-aided engineering tools. The third being IT provides for technological innovations or acts as an enabler of innovation, and last it provides competitive intelligence by collecting and analyzing information about innovations, markets, competitors and environmental changes (Turban, Rainer, & Potter, 2003). This information technology will help Kudler to provide some details with creating their stock report, sales report, purchase orders, communicating and choose best suppliers, and manage payments. Automated supply chain will have more initial cost for Kudler, but more economical in long run as, saves man power-hours. Kudler Fine Foods understand that they have to keep updating their technology to remain successful in the fine foods industry. Kudler can use Competitive intelligence to beat their competitors. “Information about the competition can mean the difference between winning and losing a business battle. Many companies continuously monitor the activities of their competitors.” ((Turban, Rainer, & Potter, 2003 p.610). Information Technology needs to have the ability to compile information from all business processes and present them in an understandable way to be used in the decision making process. IT has to get the right information and provide it to the right person. Through this information, the leaders of the company can know what their standing is at all times. (Caribbean Business, 2008).

Generic Strategy

Kudler Fine Foods can use Porter’s Five Forces model to determine which generic strategy to pursue to stay in front of their competitors. Kudler must concentrate on the five major forces to avoid jeopardize its position in the fine food industry. The five forces are as fallow: “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.” (Turban, Rainer, and Potter, 2003, pg. 612). The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. It helps understand both the strength of the current competitive position, and the strength of a position Kudler’s is moving. In addition, Kudler can establish a strategy intented at establishing a lucrative position against the forces by recognize them. Kudler had being implemented the differentiation strategy in the past by providing high quality products at competitive prices. Besides, Kudler goals are to provide organic produce and position themselves ahead of other gourmet food shops in their nearby areas. They are planning excellent catering services and are providing to their customers the facility to order products over the internet. In addition, Kudler might use the benchmarking strategy by survey and detect other gourmet food companies to understand the practices employed in their production. It's always good to know your competition. Markets can change quickly, especially in volatile economic times. If you can identify competitive threats and jump to make changes you may be able to save your company time, effort and revenue. (Westchester County Business Journal, 2007, p1).

Tactics to implement the strategy

Kudler will require implementing some tactics to apply their strategy. According to Mind Tools website (2008),вЂ¦Ð²Ð‚¦Ð²Ð‚¦..in the supplier power strategy : Kudler will assess how easy it is for suppliers to drive up prices. The fewer the supplier choices the company have, and the more need suppliers' help, the more powerful the suppliers are. The tactic of Kudler will be to find more suppliers that can offer the same product at a lower price. Buyer Power: Is how easy it is for buyers to drive prices down. If Kudler deal with few powerful buyers, they are often able to dictate terms them. 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. Catering service of organic produce is hard to find; Kudler will be safe on this topic. Kudler will have some of their frequent buyers promote their organically grown produce in a television commercial. Kudler will reward these customers by giving them the maximum amount of rewards point in a fiscal year. This will attract consumers to try their organically grown produce and reduce their bargaining power. Competitive