Essay on Trader Joes Case Analysis - 1830 Words

------------------------------------------------- UGBA 115: Competitive Strategy Trader Joe’s Midterm Case Analysis ------------------------------------------------- Jean Carlo Hoyos The Industry The grocery industry in the United States is currently an attractive industry (a.k.a. profitable). This attractiveness derives from the relative low threat of new entrants, low supplier and buyer powers, and low threat of substitutes. The main factors driving these results are the low concentration of suppliers and buyers, the significant barriers to entry due to high up-front investment costs (for infrastructure and distribution channels) and scale economies, low availability of substitutes, and the threat of retaliation from†¦show more content†¦In the sociocultural environment, a more educated population is increasingly becoming more health-conscious which is raising the demand for â€Å"organic† food. This increase in demand for organic products caused the USDA to start regulating every product before the label â€Å"organic† can be stamped on it. Refer to Exhibit 2 for a more the full PEST analysis. Within the industry, firms are grouped by their emphasis on service quality compared to their product variety or SKUs (Exhibit 4). The mobility barriers within these groups are high in the big-footprint group (high SKUs / low to medium service quality) and low within the small-footprint group (low SKUs / high service quality). For example, there is extensive evidence of big retail stores entering the small-footprint market, such a Walmart with its profitable Walmart-Express stores, but there is no evidence of small-footprint stores expanding into the big-footprint arena. Trader Joe’s Trader Joe’s strategy is to provide unique products for highly educated customers at reasonable prices and excellent customer service. The efficient and effective way in which TJ has achieved this strategy has turned it into its competitive advantage. This competitive advantage has its roots on TJ’s core competency of Culture and Brand Management (Exhibit 7) which is the result of the combined effects of Infrastructure, Human Resources, Inbound Logistics and Service from the value chain (Exhibit 6). However, TJ is lacking inShow MoreRelatedTrader Joes Case Analysis2037 Words   |  9 PagesUGBA 115: Competitive Strategy Trader Joe’s Midterm Case Analysis Jean Carlo Hoyos Trader Joe’s Analysis Hoyos 2 The Industry The grocery industry in the United States is currently an attractive industry (a.k.a. profitable). This attractiveness derives from the relative low threat of new entrants, low supplier and buyer powers, and low threat of substitutes. The main factors driving these results are the low concentration of suppliers and buyers, the significant barriers to entryRead MoreEssay on Trader Joes Case Study Analysis912 Words   |  4 PagesTrader Joe’s has internally created a brand for its company using a different strategy as compared to other supermarkets. Its approach of effective relationship-building program pleases customers through unrivaled customer service. This case study presents many factors that play a part in their customer relations strategy. Trader Joe’s does not focus on advertising. Rather, it focuses on effective internal communications with employees to build strong customer relationships. Trader Joe’s takes aRead MoreTrader Jobs1258 Words   |  6 PagesSatisfaction Trader Joe Kimberly Love Dr. Thomas Schaefer Business 520 Leadership and Organizational July 20, 2014 Trader Joe’s founder had a perception for his stores after vacationing in the Caribbean. He perceived that the customers would try new things while on vacationing. Also realized that less is better. Many time customers buy more when there is less to choose from in that store. Their attention is only selective when there is not a big variety of supplies. Trader Joe caseRead MoreTrader Joe S Writeup1124 Words   |  5 Pagesï » ¿Trader Joe’s No average Joe Trader Joe’s is an American privately held chain of grocery stores founded by Joe Coulombe. Trader Joe’s have been successful business for long time with their unique innovative strategy of selling natural and organic food products with only one brand of an item for low price. Their unique culture of relaxed beach environment and helpful knowledgeable employees makes their customer to stay loyal to the brand. Eighty percent of Trader Joe’s has in-house products thatRead MoreTrader Joes Analysis Essay1407 Words   |  6 PagesTrader Joe’s Trader Joe’s: A Quiet, Private, and Savvy Retailer Thomas Pinnola Strategic Management Professor Backhaus March 17th 2013 Thomas Pinnola Professor Backhaus Writing Assignment 2 March 17th 2013 Trader Joe’s: A Quiet, Private, and Savvy Retailer Joe Coulombe started Trader Joe’s in 1967. Traded Joe’s can be characterized as a low cost, high quality grocery store. Eighty percent private label productRead MoreEssay about Business Strategy1670 Words   |  7 PagesTrader Joe’s questions; 1. How do firms in the supermarket industry make money? 1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms? 2. What do the results say about how firms in this industry can deliver strong financial returns in different ways? 2. What are the key sources of Trader Joe’s competitive advantage? 3. What are the main threats to Trader Joe’s competitive advantageRead MoreThe Food Retail Industry Is Absolutely Massive1586 Words   |  7 Pagesaccording to the Harvard Business School case study. Following Walmart, Kroger and Costco own the biggest next largest slices bringing in 76 billion and 71 billion respectively. In this highly competitive market that has some of the smallest margins of any industry it can be tough to get ahead and even tougher to grow. However, Trader Joe’s has managed to pierce what was once a very small world for grocers. We will take a look at some of the key drivers of Trader Joe’s success and take a deeper look atRead MoreTrader Joe s Strategic Planning945 Words   |  4 PagesIntroduction [Amy] Trader Joe’s is a leading firm that is taking over the supermarket industry. The company completely altered the idea of a traditional supermarket and turned it into a whole new experience for consumers. Through Trader Joe’s strategic planning, they’ve paved a way for consumers to have high-quality products while paying low prices. Trader Joe’s provides fewer products that are health-conscious, unique and privately labeled. Trader Joe’s has utilized this, secrecy, employee job satisfactionRead MoreCase Study : The Sphinx Like Strategic Initiative Pursued By The Grocery Retailer Trader Joe s `` Essay1117 Words   |  5 Pagesand Roberto’s case study on the sphinx-like strategic initiative pursued by the grocery retailer Trader Joe’s, both expounds and upends the strategic tool-kit crafted by Jared Harris and Michael Lenox. For this very reason, Trader Joe’s story encapsulates what –to this writer–could well be ca lled the credo or capstone of strategy: if competitors can nimbly replicate a firm’s course of action; that precept did not hold a formidable competitive advantage. In the year 2013, when the case finalizes itsRead MoreTrader Joe s Case Study Analysis991 Words   |  4 PagesTatiana Tripp Trader Joe’s Case Study Analysis COM 742 11/19/2014 The current problem is that advertising and growth can lead to an end of the â€Å"quirkiness† that is currently Trader Joe’s strongest attribute. Already, a bit of authenticity from the original stores has slipped away from expansion. A former employee, as shown in the case study, said â€Å"In the early days we never tried to be a neighborhood store.†1 There is no question that trying to incorporate more traditional advertising and thus, competing