Case Write-Up Trader Joe's Essay examples

For Trader Joe’s, they are able to demonstrate the importance of each responsibility in the management process by establishing a plan to serve quality products with natural ingredients, inspiring flavors, and buying direct from the producer whenever possible,. They also organize their stores to limit its stock, carrying about 1,500 to 2,000 products compared to retail mega-markets with 25,000 to 45,000 products. Through leading, Trader Joe’s support their future leaders by hiring managers only from within the company. Future leaders enroll in training programs called, Trader Joe’s University that foster in them the loyalty necessary to run stores according to both company and customer expectations. Lastly, Trader Joe demonstrated the responsibility in controlling by placing standards to sell natural based ingredient products, as well as striving to offer the highest quality type foods.

Trader Joe’s is a major food retailer who has developed quite the name for themselves. It has well over 350 stores in over 32 states and is expected to continually grow over the next few years (Bond, 2012). For over 50 years, Trader Joe’s has been providing quality customer services, products and a unique shopping experience for its customers. They have come a very long way from when they first officially opened their doors. Trader Joe’s started when its founder Joe Coulombe wanted to find a way to differentiate his 7-Eleven stores (Schermerhorn, Osborn, Uhl-Bien & Hunt, 2012). In the food retailer industry, Trader Joe’s has developed a process that works well and

Trader Joe’s has great workforce management practices and its employees enjoy what they do. They have cheerful attitudes and are more than willing to assist customers with anything in the store. Trader Joe’s employees are engaged in conversation with the customers that shop in the store and make the customers aware of any new or exciting products from them to try. The positive behavior of these employees is due to the compensation and benefits each employee receives, which is far more competitive than other grocery food stores. Trader Joe’s has also created an environment where employees feel valued and know their opinions matter to the growth of the

Trader Joe’s chief executives have been careful in their expanding of the brand to more geographic locations, and they must continue to seek out their target market of “intelligent, educated, inquisitive individuals” and settle around them.

One of Trader Joe’s competitive assets is their business model. They open small stores that give their customers a neighborhood feel. Analysts have found that the chain sells almost twice as much per square foot as its main competitor, Whole Foods (INVESTPOEDIA, 2016). This unique strategy allows consumers to view and choose more products in a given area, therefore making them more likely to find what they are searching for. This strategy is sustainable if Trader Joe’s continues to operate in this manner.

Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in

This paper is about Trader Joes corporation’s organizational culture and the various challenges that the corporation has faced recently. One of the main problems for Trader Joe’s, is that when it was sold to Aldi groceries (Albrecht family) the stores concept started to become more like a corporate franchise.

Trader Joe’s was founded by a guy named Joe Coulombe in 1967 under the idea of being a store that offered products aimed at sophisticated costumers interested in finding good bargains and products that are natural and organic, and not typically found in general supermarkets. Although, there are many changes that happened with the company and the industry since 1967, Trader Joe’s is still going strong with the way they do things whether it be on the customers’ aspect or the employees’ aspect. However, as Trader Joe’s tries to implement new processes and procedures, things start to shake the very foundation of the company itself like growing bureaucracy that the company never has, or the increased competition between employees who try to advance

3. What are the main threats to Trader Joe’s competitive advantage? Is their advantage sustainable?

With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.

The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at

Trader Joe’s operates over 340 stores in 9 states were they “buy direct from suppliers whenever possible, bargain hard to get the best prices and then pass the savings on to the customer” (Trader Joe’s, 2013, para. 4). Whole Food’s Market is the “world’s leader in natural and organic foods, with more than 360 stores in North America and the United Kingdom” (Whole Food, 2013, para 2). Trader Joe’s and Whole Food’s Market have managed to take original ideas and spread them throughout the nation to many different customers. Although they differ not only in the technique in which they decide to bring products to their customers but also in term of inventory management and supply chain organization. These two companies have become so successful in my opinion, not by what they differ in but what they have most in common, which is their commitment to their loyal customers, employees and undeniable quality in their products they sell. Through their loyalty to their customers and employees in addition to their irreplaceable value

The procedure that the firms follow in the supermarket industry involves purchase of products in bulk quantity at lower rates and offers the products to customers at lower prices. Trader Joe’s offers its customers purchasing goods at lower prices than competing stores. Thus, consumers can

In addition, he was able to provide customers a wider selection of low-priced products. As a result, he had to seek for a way to manage the small businesses just in case it had to survive. Thus, he began brainstorming some new strategies. For instance, these could be a niche for supplying specialty products, such as, wines and drinks, as well as, gourmet foods which were seen to be more profitable to sell. In addition, Joe changed the name of his stores to Trader Joe’s and stocked with all variety and brands. In addition, his strategy also comprised of fine foods and fresh bread. This strategy also worked because his customers liked his new upscale supermarket concept. Furthermore, the premium products that he stocked also sold very quickly. In addition, to compete in the premium quality segment of the supermarket business and keep the customers to buy the high end products, he had to motivate his sales people to be able to take responsibility, in order to meet the customer’s

Firstly, it is important to remember the current situation of Trader Joe’s in USA, the company has over 400 stores in 30 states and is the leader in customer service in USA. However, the company is not on the top ten supermarkets in sales category. Additionally, Trader Joe’s just operates in USA and does not have experience in other international markets. (Peterson, 2013)