Valdez’ Carniceria Congratulations, you now are the CEO ofValdez’ Carniceria Meat Market, a one store retail butcher shop inStatesboro (the only meat market in Statesboro). This store hasoperated for two generations in Statesboro and has a dedicatedclientele not only among the growing Latino market but many Anglosalso shop there for the variety and quality of the meat they find.Your suppliers are largely local farmers in Bulloch and surroundingcounties. There are no other retail butchers outside of thoseavailable at Walmart, ALDI, BI-LO and Food World (these are theonly supermarkets in Statesboro). In the store itself, there aresome refrigerated cases that contain standard cuts of meat inshrink wrapped packages. There is also a counter where customerscan ask for specialized cuts and other service. You realize thatbecause of your relationship with the local cattle farmers, you getfirst call on the best beef however your volume is not enough touse up all the available supply. The prices that you pay them arehigher than they would get from the larger grocery firms. Whileothers could come into this market, you think that you will have anadvantage in getting the best beef. You do not think thatsubstitute products like turkey, soy or tofu pose much of a threat.There is too high of a switching cost in terms of taste and texturefor many people to move to those products from beef. There are afew local farmers, so you feel confident in being able to negotiatethe price you want for your beef. There is also quite a bit ofvariety in the product to be provided (prime, choice, good). At thelower end (good, choice) where there are a number of competitiveofferings (hamburger, steaks) there is quite a bit of competitionhowever at the higher end (prime meat) and specialty cuts, thelarger retailers don’t usually offer those leaving Valdez as one ofthe few butcher shops to offer them readily. Answer the questionson the next document assuming you are starting from a blank slateother that what was stated in this case

Case Questions:

1. Is this a commodity market? Why or why not?

2. Could Valdez implement a cost leadership strategy in thismarket? If not, why not? If so, how?

3. How could Valdez implement a differentiation strategy?

4. Suppose Valdez decided to pursue a differentiation strategy.Would you select a focus strategy or a niche strategy? On whatwould you differentiate and how?

5. How could Valdez use information systems to:
   1. Lock in customers?

2. Lock out competition?

3. Improve their competitiveness?

4. Develop new products?

6. Can you think of a disruptive technology for Valdez that willchange the industry structure?