Introduction
Trader Joe’s is a leading supermarket in the United States of America. Various reports have ranked Trader Joe’s on top as a consumers’ favorite supermarket. In 2012, the company was ranked the 11th among the firms leading in creativity in the U.S.A. the operational locations are spread throughout the U.S with new branches opened in South Carolina, Kentucky, Lexington and Columbia. The industry has many firms creating a competitive market. Regardless of the competition levels, the company has been able to maintain a high profitability brought about by its market power (Slevin, 2017). This report addresses the strategic direction of Trader Joe's touching profitability, business processes, industry analysis and the plans used to tackle …show more content…
Strategic competitors like the Walmart is a significant threat to the firm's strategy of small stores. The Amazon in the other hand is also threatening Trader Joe’s by recently entering the grocery market and its plan to enter more cities.
Business model analysis
Trader Joe’s is among the founders of small neighborhood chain. The idea came from the earlier operational models that had small floor sizes. In became easier to invest in more stores due to the low cost of setting up and running. The content displayed is well revealed here. The layout inhibits concealing of items (Hunger, 2011). Over 400 stores spread out to different locations avail goods at the closest point possible to the buyers. The sites have been selected according to the concentration and sizes of the markets in those places (Rajendran, 2012).
The investment strategy of the company makes it generate more profits as compared to the …show more content…
Health and retirement benefits are available to the workers competitively (Burgelman, 2016). The employees are mostly the technically skilled college graduates and are selected to be outgoing to interact empathetically with customers. The customers happy because of the services they get from the productive employees. Workers are made to take work as parts of their social lives. A new employee will be instilled with the social values through a longer period than even the period for training. Trader Joe's believes that motivation of employees is above training. People are social beings. An employee is encouraged to try every product and made to do any work (Glueck,
Trader Joe’s is a leading supermarket in the United States of America. Various reports have ranked Trader Joe’s on top as a consumers’ favorite supermarket. In 2012, the company was ranked the 11th among the firms leading in creativity in the U.S.A. the operational locations are spread throughout the U.S with new branches opened in South Carolina, Kentucky, Lexington and Columbia. The industry has many firms creating a competitive market. Regardless of the competition levels, the company has been able to maintain a high profitability brought about by its market power (Slevin, 2017). This report addresses the strategic direction of Trader Joe's touching profitability, business processes, industry analysis and the plans used to tackle …show more content…
Strategic competitors like the Walmart is a significant threat to the firm's strategy of small stores. The Amazon in the other hand is also threatening Trader Joe’s by recently entering the grocery market and its plan to enter more cities.
Business model analysis
Trader Joe’s is among the founders of small neighborhood chain. The idea came from the earlier operational models that had small floor sizes. In became easier to invest in more stores due to the low cost of setting up and running. The content displayed is well revealed here. The layout inhibits concealing of items (Hunger, 2011). Over 400 stores spread out to different locations avail goods at the closest point possible to the buyers. The sites have been selected according to the concentration and sizes of the markets in those places (Rajendran, 2012).
The investment strategy of the company makes it generate more profits as compared to the …show more content…
Health and retirement benefits are available to the workers competitively (Burgelman, 2016). The employees are mostly the technically skilled college graduates and are selected to be outgoing to interact empathetically with customers. The customers happy because of the services they get from the productive employees. Workers are made to take work as parts of their social lives. A new employee will be instilled with the social values through a longer period than even the period for training. Trader Joe's believes that motivation of employees is above training. People are social beings. An employee is encouraged to try every product and made to do any work (Glueck,