Bargaining Power of Buyers
With many grocery chains across the world, the supermarket industry is very large and competitive industry. Trader Joe’s and other grocery stores can integrate backwards in this industry by creating their own brands. Trader Joe’s has their own unique labels and private brands. The discount prices and high quality products attract price-sensitive people who are bargain shoppers. With it’s collection of music, and wines it additionally attracts people 21 years and old, as well as well traveled and educated consumers. Trader Joe’s targets the middle class, but can still satisfy college students and underpaid, educated people. With the health-trend market rising over the last few years, Trader Joe’s satisfies health-oriented discount shoppers. Overall, Trader Joe’s has a high bargaining power of buyers.
Threat of Entrants [Tim]
The grocery store market is a very large market with a few dominant corporations at the top and many smaller brands beneath them. Entering this market and gaining a large share of the market is not an easy task. Capital requirements in this market can be very high as a building is necessary along with large quantities of inventory. Additionally Trader Joe's has …show more content…
They have a large selection of privately labeled products with a fast turnover rate. They also have an extremely loyal customer base which makes substitutes not impossible but not likely either. One substitute for going to trader joe's and purchasing food there would be eating out at a restaurant and enjoying the food that they offer. Another potential substitute for recreating the unique nature of the product selection that Trader joe's carries is for consumers to search for the products and order them online through Amazon and get them delivered to their doorstep directly. Trader Joe's has done an excellent job at creating brand loyalty in a market with few
With many grocery chains across the world, the supermarket industry is very large and competitive industry. Trader Joe’s and other grocery stores can integrate backwards in this industry by creating their own brands. Trader Joe’s has their own unique labels and private brands. The discount prices and high quality products attract price-sensitive people who are bargain shoppers. With it’s collection of music, and wines it additionally attracts people 21 years and old, as well as well traveled and educated consumers. Trader Joe’s targets the middle class, but can still satisfy college students and underpaid, educated people. With the health-trend market rising over the last few years, Trader Joe’s satisfies health-oriented discount shoppers. Overall, Trader Joe’s has a high bargaining power of buyers.
Threat of Entrants [Tim]
The grocery store market is a very large market with a few dominant corporations at the top and many smaller brands beneath them. Entering this market and gaining a large share of the market is not an easy task. Capital requirements in this market can be very high as a building is necessary along with large quantities of inventory. Additionally Trader Joe's has …show more content…
They have a large selection of privately labeled products with a fast turnover rate. They also have an extremely loyal customer base which makes substitutes not impossible but not likely either. One substitute for going to trader joe's and purchasing food there would be eating out at a restaurant and enjoying the food that they offer. Another potential substitute for recreating the unique nature of the product selection that Trader joe's carries is for consumers to search for the products and order them online through Amazon and get them delivered to their doorstep directly. Trader Joe's has done an excellent job at creating brand loyalty in a market with few