565 Words3 Pages
After examining Trader Joe’s, and comparing it to Michael Porter’s generic strategies it was not very clear which method it was attempting to follow. It possesses qualities of both differentiation as well as price leadership. We believe that it is following focused differentiation but with a side of price leadership. This is demonstrated through the way that the company runs its stores, the products placed inside them, as well as its low price points. In daily operations it is very far from your average grocery store. Typically, these stores are comprised of much less area but pull down more money per square foot. It differentiates itself in a multitude of ways. This differentiation ranges from the very schematic of the store, to the product itself, and finally to the customer service. The way the store is laid out changes from time to time, this directs traffic flow in one direction or another. This leads people around the store in a different way, exposing them to more products, as well as giving it a unique feel that big box grocery stores cannot replicate. Some say that this gi...

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