Case Write-Up Trader Joe's Essay

932 Words Dec 1st, 2015 4 Pages
How do firms in the supermarket industry make money?
Operating on very thin profit margins, players in the supermarket industry traditionally either focus on a premium segment or follow a discounter strategy at the low end. Premium players address educated and more price elastic consumers who value healthy, natural and organic food; the share of perishable items for these players is normally distinctly higher. Players that focus on a discounter strategy offer a higher share of simple necessity items and value price competitiveness over premium features like healthiness or organic origin. Independently of the focused customer group it is imperative for players in the supermarket industry to be cost efficient and optimize operations
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With its effort to expand the firm’s network, it is increasingly difficult for Trader Joe’s to authentically communicate its image of the neighborhood store to local customers. Going in-hand with the expansion is the increasingly growing bureaucracy, which’s nonexistence formerly presented a major advantage for the company’s employees and its overall image. Another negative trend that formed in the internal structure of the ever expanding firm, is the increasing competition among the employees, as they seek professional advancement. This trend threatens to erode one of Trader Joe’s major advantages, namely the relaxed and open atmosphere that stems from the satisfaction and positive attitude of the firm’s employees.
How would you modify Trader Joe’s strategy moving forward? Trader Joe’s biggest opportunity lies in a field it already seemed to have mastered: the company’s marketing. Developing an effective strategy to communicate with its already vast customer base should be the main concern for Trader Joe’s. Due to the company’s unique positioning and style, customers have already formed groups to express their wishes, like the numerous Facebook pages that aim at bringing the company to a specific city or state. Trader Joe’s must tap into this existing passion and further develop it my meaningfully communicating and talking with its customers. An image for the company is already existent, but an accompanying

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