Trader Joe Case Study

1760 Words 8 Pages
Register to read the introduction… However, today, the growth of the industry of organic foods is increasing rapidly. The others competitors are Trader Joe’s company and Wild Oats Market. First of all, Trader Joe’s company initially was known as Pronto Markets, and they offering the products with low prices but high in quality. However the company is lack of department servicing and the size of store is limited. Secondly, for Wild Oats Market, which was founded in 1987, the initiator was found to be lack of experience in managing the natural foods market. On the other hand, they produced organic foods at the beginning but then were switching their products to traditional grocery merchandise. However, it also belongs to a company that is the third largest natural foods supermarket chain in the United …show more content…
Threats:

- The economy downturn would decrease the disposable income and the needs of luxury goods would be reduced.

- The market competition and also the intrusions

- Slack of rules and regulations on organic foods

Current
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The strong concept behind their strategies was to establish an interactive store atmosphere which makes consumer enjoy shopping for food. In addition, they want to create a pleasurable experience of consumer. On the other hand, Whole Foods Market intent to make their customers to put Whole Foods Market as their ‘third home’ besides their real home and work, to relax themselves and also interact with others in the environment. As for the financial analysis of Whole Foods Market, according to the case study, the profit margins from the financial analysis have been decreased from the year of 2005. In the past three years, the debt of the Whole Foods Market has increased dramatically as the cost of goods sold is increasing too. In addition, Whole Foods Market has very low revenues as compared to the competitors. Whole Foods Market adopted differentiation strategy in their business. Organic foods basically belong to category which it cannot easily be substituted; however it can be presented in a different way which does by Whole Foods Market. Whole Foods Market stressed the importance on the quality of the foods, and also about their service that they offered to the customers. Besides that, it has also started their business to achieve international expansion by setting themselves in Canada for three years and it also developed another six stores in the United Kingdom. International expansion is

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