Wilbur’s Organic Bacon Company: Business Proposal
Wilbur’s Organic Bacon Company (Wilbur’s) has been in the hearts of Southwestern
Pennsylvanians since 1978. It is through their demand that Wilbur’s is proposing to expand its
market share with one of the largest grocers in the tri-state area. Giant Eagle Inc, mother
company of The Market District, has been in business with local farmers for decades to bring
area fresh agriculture to all of its clientele. In the past few years, Giant Eagle created The Market
District where local, natural and organic foods can be purchased. They have small locations
inside of the already established Giant Eagle locations, as well as freestanding new Market
District locations. Also throughout the Get-Go gas stations owned by Giant Eagle, Market
District items can be found in the convenience area coolers. Wilbur’s is preparing to become the
newest selection in bacon for the Market District.
Wilbur’s resembles a monopolistic competition due to its differentiation of naturally
cured bacon. Wilbur’s is able to sell as much output as it wants at the market price. There are
numerous bacon brands found in every grocery store, the most popular are Private Label and
Oscar Mayer. Wilbur’s is not looking to create competition amongst other labels, just to branch
further into other parts of the tri-state area. Raising our pigs naturally on pasture and forage, and
using the process of curing with salt instead of nitrates, makes Wilbur’s a healthier choice.
Price Elasticity of Demand
The bacon market has a perfectly elastic demand. This means that the “firm represented
cannot obtain a higher price by restricting its output, nor does it need to lower its price to
increase its sales volume” (McConnell, 2009, p. 178). It is the market, not the firm, that
determines the price. The only control that Wilbur’s has in this market is to...