1. What is the strategy of Giuseppe Sausage Company? Giuseppe's Sausage Company's strategy is to start small and work with a broader customer base by initially focusing on unique, high quality specialty sausages, customized for the customer base in their local area. Smaller companies are able to offer a wider variety of specialty sausages because they only focus on a narrower customer base, while larger companies tend to focus on producing a few varieties to cover a broader customer base. Giuseppe's only purchased premium ingredients and developed its own special recipe using exotic meats and spices for sausage production. Giuseppe's product line included over 80 different sausage-related products for sale to supermarkets, restaurants, casinos and mail order/one-to-one sales. Giuseppe's strategy was to develop a reputation for being the best in the industry. To do this, they focused on and delivered what their customers wanted – custom specialty sausages, priced their products competitively – just pennies above competitive prices, and prided themselves on be above average in USDA and Department of Health standards and regulations for cleanliness. sausage manufacturing areas.2. What is the nature and strength of the competitive forces facing Giuseppe in the Memphis area specialty sausage industry? Is the Memphis area market attractive from the perspective of attractive profit prospects for Giuseppe? The nature and strength of the competitive forces facing Giuseppe in the Memphis area specialty sausage industry are as follows: 1. Rivalry Among CompetitorsThe sausage industry is a very competitive market in Memphis. Already 25 to 30 major sausage brands are sold in the Memphis retail market. The main competitors were Bryan, Jimmy Dean and Johnsonville. Competition between these companies is focused on price. Large, mass-producing companies are able to purchase their products more cheaply and therefore produce and sell more cheaply than smaller companies. Other competitive activities included sales promotion, advertising and product differentiation. Large companies have much greater financial capacity to be able to invest more in advertising than a new start-up company could. Storage space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best storage space. Consumers will see their products before they notice other, lesser-known products.2. Alternative Sausages – Health conscious people who want to reduce the fat content of their diet.