Differentiating Between Market Structures - Essay Example

The attraction of the consumers is ensured through high quality products. The products where the company specializes in are not available easily in the market and therefore the company has the opportunity to cement the consumer base. The company can thus control the bargaining power of the consumers. The needs of the consumers can be readily analyzed and they are assisted in taking the advantage of the buying opportunities. The customers are driven towards the shops with the help of the discounts offer.

The supply chain managers of the company can recognize the importance of the customers in their business. They are aware that attracting more customers will involve more sales which in turn mean more revenue and profits. The customers are retained through the modes of product variety and low costs. The services offered are efficient and ensures that customers do not queue up in the shops of the competitors. The customer loyalty has been gained by the company through the modes of customer retention and widening up more opportunities for the customers which increases the customer sovereignty and the customers have the option to choose the products that suit their preferences.

Competitors never got the chance to drive away consumers from Kedler Fine Foods. In order to compete effectively the competitors are forced to make additional expenses in terms of marketing and advertisements. Competitive strategies Branding ensures that the customers associated with the company believe in innovation and quality. The customers want value for money and so the company engages in providing top quality support to them. The efficient delivery system has paved the way for higher profits while the lack in innovation can lead to reduced sales and revenue.

The company has been able to invent new product styles and effective delivery system upon placement of orders. Internet marketing is the strategy that was adopted by the company to promote the products. The website offers information on a variety of products, details on delivery system and some other information that may be necessary for the customers (Porter, 1985). The online customer relationship is an effective way of managing the business and to deal with the customers in prompt fashion.

Positioning is a strategy that tends to increase profits. The company enjoys the top position in offering fine quality products to the customers who demand quality with competitive prices. The company targets the middle class customers and focuses to cement the customers’ base with time. Market Structure The company operates in the market of perfect competition. A large number of small firms comprise the market for perfect competition. Each firm is small compared to the entire market. The comprising firms set the identical products.

The customers as well as the firms are well informed about the prices. In the short run the firms can change only the variable factor namely labor. The other decisions are predetermined. In the long run the firms have the potential to change their scale. In the short run when the existing price is less than the average cost curve it is better for the firm to close down. Several buyers are present in this market. The market offers products that are substitutable. There are no barriers to entry and therefore provides a level playing field for the new entrants (Etro, 2009).

The forces of demand and supply determine the prices of the products and since the company under