Founded in 1958 by Joe Coulombe, and now established in more than 365 stores in the United States, Trader Joe 's has been serving customers for their gourmet tastes. Trader Joe 's specializes in gourmet and natural-food stores offering staples, milk and eggs and other foods with below-average price. They encourage customers to buy the products at low price without having registered with the store. The company offers selected types of tasty and quality but unusual foods. They contact the manufacturer of the food and contracts with them for the supply of the food and give space in their store for a time period.
Analysis
Trader Joe 's has been selling gourmet foods to its customers on the very low cost which now seems very difficult to maintain …show more content…
Another problem that the company is facing is from within the country where the rising cost of operating business and increasing labor costs further worsen the situation. Trader Joe 's is a German company operating in United States due to which it has to follow some regulations of the U.S. soil to keep their business operating in the country. The challenges that can affect its productivity and efficiency are the rising costs of employment which pose a bigger threat to the company and may affect its low-cost strategy because the minimum-wage employee laws would force it to keep the employment cost high and affect its efficiency and productivity. Another major threat facing a foreign company like Trader Joe 's in U.S.A. is the increased taxation on the business which force the profitability low and rise the cost of operating business due to which the business may be forced to keep their prices high to meet the taxation obligations. The company can resolve the problems of the increased taxation and increased labor cost by selecting the products that are really low in price from other countries and which are the cash cows for Trader Joe 's. It must keep such cash cow products in the shelf so that the cost of operating business and can be …show more content…
The company doesn 't charge a very high price but still make significant profits due to the strategies of limited stock, selected types of food which can be sold at the low price. Despite the success of the business, Trader Joe 's has to face challenges of rising cost in the international market and increase cost of doing business in the U.S.A., the company can face these challenges by further reducing the products that are not making any good profits or which have a high turn-over rate as compared to other fast moving food products. The other way the company can resolve these challenges is the by searching the manufacturer offering the quality food at further low price so that it can sustain and compete in the throat-cutting
Analysis
Trader Joe 's has been selling gourmet foods to its customers on the very low cost which now seems very difficult to maintain …show more content…
Another problem that the company is facing is from within the country where the rising cost of operating business and increasing labor costs further worsen the situation. Trader Joe 's is a German company operating in United States due to which it has to follow some regulations of the U.S. soil to keep their business operating in the country. The challenges that can affect its productivity and efficiency are the rising costs of employment which pose a bigger threat to the company and may affect its low-cost strategy because the minimum-wage employee laws would force it to keep the employment cost high and affect its efficiency and productivity. Another major threat facing a foreign company like Trader Joe 's in U.S.A. is the increased taxation on the business which force the profitability low and rise the cost of operating business due to which the business may be forced to keep their prices high to meet the taxation obligations. The company can resolve the problems of the increased taxation and increased labor cost by selecting the products that are really low in price from other countries and which are the cash cows for Trader Joe 's. It must keep such cash cow products in the shelf so that the cost of operating business and can be …show more content…
The company doesn 't charge a very high price but still make significant profits due to the strategies of limited stock, selected types of food which can be sold at the low price. Despite the success of the business, Trader Joe 's has to face challenges of rising cost in the international market and increase cost of doing business in the U.S.A., the company can face these challenges by further reducing the products that are not making any good profits or which have a high turn-over rate as compared to other fast moving food products. The other way the company can resolve these challenges is the by searching the manufacturer offering the quality food at further low price so that it can sustain and compete in the throat-cutting