Essay about Business Strategy

1670 Words Dec 9th, 2014 7 Pages
Trader 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 advantage? Is their advantage sustainable? 4. How would you modify Trader Joe’s strategy moving forward?
What are the key sources of Trader Joe’s competitive advantage?
Trader Joe’s Competitive Advantage
Their competitive advantage stems not
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We celebrate the special way we treat and relate to our customers. We think retailing is all about customer experience, and that is what really differentiates us.
• We hate bureaucracy. We give everyone a license to kill bureaucracy. All officers are in cubicles. The CEO is in a conference room. We have very few layers—a very simple organization.
• Kaizen. Each one of us every day is trying to do a little better. This is infused into our training programs. We really stress teamwork and working together, while we do not does elaborate budgeting at the store level.
• Treat the store as the brand. Individual products are not the brand. The store is. Brand is really the covenant between the company and the customer, and the real key is day-to-day consistency in meeting and satisfying needs. Last year we were very surprised and proud when an article came out in Entrepreneur magazine said three companies that got branding right were Krispy Kreme, Nike, and us.
• We are a “national/neighborhood” company. Our customers benefit from our national buying ability, but we want each store to be close to the customer and really a part of their neighborhood.
To ensure that these values are real and not words on a piece of paper, Bane visits each store every year and spends two to three weeks a year physically in the stores bagging groceries and listening to customers. He sees his job as making sure the company’s values are real and that people are held to that

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