Case Study Trader Joe's

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Question 1 I think Trader Joes follows cost leadership, differentiation and focused strategy. Cost Leadership According to the article, Trader Joe’s focuses on lower cost and higher quality products in order to attract customers’ eyes. Trader Joe’s is quite small which is less than 10000 square feet. In this way, company can save on lot of cost on the place, electricity and water spending. They do not have hire a lot employee for that. This company also choose not doing advertisement on newspaper and television commercial which save a large amount of spending. Also, since the Trader Joe’s buyer purchase a large of quantity in each of SKU’s at a very low price because the buyer can directly purchase from the manufacturers instead of work…show more content…
Trader Joe’s focuses on a lot of unknowing products in order to satisfied customers’ curiosity. Trader Joe’s also not selling same products, their products change all the time. They put 10 to 15 new products each time into the store which makes customer feel like playing a treasure finding game when they shopping in the store. In this way, customers are more willing to shopping at Trader Joe’s. Trader Joe’s also followed the statement into the cost leadership strategy that they do not set up a large shopping center area, instead of a place less than 10000 square feet which carry less items than normal market. It shows that, people would rather like to shopping in the area with less items because it can save their time of finding the products and consideration of buying products. Competitive advantage Secrecy is the mainly competitive advantage for Trader Joe’s. Trader Joe’s would never share the information of their suppliers as well as who is making to product to the competitors and customers. In this way, Trader Joe’s can keep their selling price less than other market. Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
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