1. What is Giuseppe Sausage Company's strategy? Giuseppe Sausage Company's strategy is to start small and reach a broader customer base by initially focusing on unique, high-quality specialty sausages customized for customers in their local region. Smaller companies are able to offer a wider variety of specialty sausages because they only focus on a smaller customer base, while larger companies tend to focus on producing a few varieties to cover a larger customer base. Giuseppe purchased only top quality ingredients and developed his own special recipe using exotic meats and spices for the production of sausages. Giuseppe's product line consisted of more than 80 different sausage-related products to be marketed to supermarkets, restaurants, casinos and by mail order/individual calls. Giuseppe's strategy was to develop a reputation for being the best in the business. To do this they focused and provided what their customers wanted: customized specialty sausages, competitively priced their products, only a few cents above competitive prices, and prided themselves on being above standards and regulations USDA and Health Department standards when it comes to cleanliness of premises. the sausage production areas.2. What is the nature and strength of the competitive forces Joseph faces in the specialty sausage business in the Memphis area? Is the Memphis area market attractive from the perspective of offering Giuseppe attractive profit prospects? The nature and strength of the competitive forces confronting Joseph in the Memphis area specialty sausage industry are: 1. Rivalry Among Competitors The sausage industry is a highly competitive market in Memphis. There are already 25-30 major brands of sausages sold in the Memphis retail market. Major competitors included Bryan, Jimmy Dean and Johnsonville. The competition between these companies is focused on price. Larger companies with mass production are able to purchase their products at a lower price and therefore able to produce and sell at a lower price than smaller companies. Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have much greater financial capacity to invest more in advertising than a new start-up business would be able to. Shelf space and competitive pricing were two of the major issues affecting sales. Since they are already recognizable brands, they can afford to buy the best shelf space. Consumers will see their products before they notice other, not-so-well-known products.2. Substitute Sausages – Health conscious people who want to reduce the fat content in their diet.