Business Proposal

Business Proposal

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.

Monopolistic Competition

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...

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