Strength
1) Customer loyalty and retention
2) Known brand presence in the united states
3) Leverage existing American expat population and Chinese who 've been exposed to American brands
4) Lack of similar profile competitors in the market (Western Organic/Fresh-Produce Supermarkets)
5) Standardized products and uniformity across all the stores
6) On a sample size of 10 random customers , maximum felt quality and security in terms of hygiene
Weakness
1) Overwhelming segment of Chinese consumer base does not know brand
2) May be duplicated and replicated by competitors
3) Suppliers may not adhere to the same product standards as Trader Joe 's might be accustomed to in the United States
4) Market may not be completely ripe and/or primed …show more content…
Also in order to keep the customer cost as low as possible while making profits supply chain costs have to be reduced and for this trader joes ensures that there is no middle man in between the transaction and the purchase is made directly from the supplier, the purchases are made in bulk to be able to negotiate in terms of prices, the Chinese demographics and diversity will allow trader joes to easily step into the market and create a space for itself, China has stamped a phenomenal economic growth in the past few decades , the disposable income has increased and people wish to spend on healthy food , the development in IT industry has created a lot of jobs and youngsters don’t really cook always at home so in that case , the correct pricing of the ready to cook meals in trader joes will lure in a complete sector of the society …show more content…
It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability.
Supplier power
Suppliers of products that trader joe’s is selling may have a source of power over the firm where there are few substitutes, if you are making cookies and there is only supplier to supply flour , you have no alternative but to buy it from him on his terms , sometimes supplier may also refuse to work with the firm . An important link in trader joe’s success has been suppliers and trader joes is an excellent customer itself and they ensure that all the payments are done on time
Potential factors
1) Customer loyalty and retention
2) Known brand presence in the united states
3) Leverage existing American expat population and Chinese who 've been exposed to American brands
4) Lack of similar profile competitors in the market (Western Organic/Fresh-Produce Supermarkets)
5) Standardized products and uniformity across all the stores
6) On a sample size of 10 random customers , maximum felt quality and security in terms of hygiene
Weakness
1) Overwhelming segment of Chinese consumer base does not know brand
2) May be duplicated and replicated by competitors
3) Suppliers may not adhere to the same product standards as Trader Joe 's might be accustomed to in the United States
4) Market may not be completely ripe and/or primed …show more content…
Also in order to keep the customer cost as low as possible while making profits supply chain costs have to be reduced and for this trader joes ensures that there is no middle man in between the transaction and the purchase is made directly from the supplier, the purchases are made in bulk to be able to negotiate in terms of prices, the Chinese demographics and diversity will allow trader joes to easily step into the market and create a space for itself, China has stamped a phenomenal economic growth in the past few decades , the disposable income has increased and people wish to spend on healthy food , the development in IT industry has created a lot of jobs and youngsters don’t really cook always at home so in that case , the correct pricing of the ready to cook meals in trader joes will lure in a complete sector of the society …show more content…
It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability.
Supplier power
Suppliers of products that trader joe’s is selling may have a source of power over the firm where there are few substitutes, if you are making cookies and there is only supplier to supply flour , you have no alternative but to buy it from him on his terms , sometimes supplier may also refuse to work with the firm . An important link in trader joe’s success has been suppliers and trader joes is an excellent customer itself and they ensure that all the payments are done on time
Potential factors