MKT5540 Exam 2 Summer II 2004

Due: Tuesday 10 August 2004 6:30pm

Your replies to these exam questions must be typed and printed on standard paper. You are limited to 600 words for each response. Each question is worth 50 points. Please list all sources used.

1. One of the leaders in the retailing of "healthy" foods in the US is Whole Foods Market, headquartered in Austin TX. Your task is to analyze this firm, identify key national and regional competitors, and assess the market potential for this sector of the retail grocery industry. Is this just a "trend" or "fad" market, or will this exist many years into the future? Who is the target customer? What do you think the market potential is for 10 years from now?

2. The recorded music industry has high hopes for the new EMD (electronic music download) services available through Napster, WalMart, iTunes, and others. This is perhaps the greatest new e-commerce development thus far in the 21st century. Your task is to analyze the market for EMDs. How will this change the way we buy music? Will pre-recorded CDs ever disappear from the market? Furthermore, will people be willing to buy their music this way, in light of the large amount of file-sharing that is done at sites like Kazaa?