Differentiating Between Market Structures Paper on Kudler...

Differentiating Between Market Structures on Kudler Fine Foods ECO/365 University of Phoenix Week 4 Individual Assignment March 11, 2013 Differentiating Between Market Structures The analysis will apply important microeconomic concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization, which affect its long-term profitability. The analysis will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. The analysis will identify the market structure that best applies to the organization, and assess how the†¦show more content†¦The firms profit maximizing output is less than the output associated with minimum average cost. The firm’s demand curve is not flat but is downward sloping. Thus in the long-run the demand curve will be tangential to the long-run average cost curve at a point to the left of its minimum. The result is excess capacity.† Also according to Investopedia (2013), â€Å"These types of firms are inefficient; it is usually the case that the costs of regulating prices for every product sold far exceed the benefits of such regulation. However, it would not have to regulate every product and every firm just the most important ones.† A firm could be said to be marginally inefficient because it produces at an output where average total cost is not a minimum. This type of market is a productively inefficient market structure because marginal cost is less than price in the long-run. Markets are also inefficient as the price given is higher than marginal cost. The competitive strategies the analysis recommends are as follows: 1) Continue with plans to automate inventory and ordering systems, 2) Hire someone with financial background to help Kathy, 3) Develop a website and ordering system, 4) Develop the catering side of the business, 5) Finish site location for Carlsbad store, 6) Open Carlsbad store and close Del MarShow MoreRelatedKudler Fine Foods: Analysis of the Market Structures and Strategic Planning1079 Words   |  4 PagesAbstract This paper presents an analysis of the market structures, strategic planning, market environment, and internal environment of Kudler Fine Food in order to suggest the best market structure which can be helpful for its long-term profitability and recommend strategies which can make it more competitive and successful among its industry rivals. Difference between Market Structures There are four types of market structures: Monopolistic Competition, Monopoly, Oligopoly, and Perfect CompetitionRead MoreDifferentiating Between Market Structures1598 Words   |  7 PagesDifferentiating Between Market Structures Jennifer Lavallee ECO/365 May 27, 2013 Market structure is the physical characteristics of the market within which companies react. This means that there are different kinds of market structure based on how companies work together within a particular industry. Location and product have the most to do with determining the market structure. There are four defined market types. The first market structure is called the perfectly competitive market. TheRead MoreEco 365 Uop Differentiating Between Market Structures Essay1031 Words   |  5 PagesDifferentiating Between Market Structures ECO365 Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completedRead MoreKudler Fine Food- Eco 365 Essay1106 Words   |  5 PagesDifferentiating Between Market Structures in Kudler ECO 365/ Lisa Messemer Sharonda Shelton July 23, 2012 Kudler Foods specializes in providing unique and high quality ingredients for the gourmet chef. In an effort to increase profits, the company is interested in adding catering to its service offerings. The