STR 581 Week 4 Learning Team Assignment - Strategy Paper - BONUS 4

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1 Running head: KUDLER FINE FOODS STRATEGIC PLAN Kudler Fine Foods Strategic Plan YOUR NAME(S) STR/581 DATE NAME OF PROFESSOR
KUDLER FINE FOODS STRATEGIC PLAN Kudler Fine Foods Strategic Plan In this paper, Team # will evaluate alternatives that Kudler Fine Foods must consider to realize growth. Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product. This will increase its marketability and popularity at a reduced cost while increasing scope through synergism. The more stores KFF acquires, the greater its market power over suppliers and other smaller specialty grocery stores. This increase in marketing power will bolster bargaining power, which will help control cost, increase its output capability, and increase Kudler’s chance to reach international markets by acquiring partners already serving these areas.

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