...Trader Joe’s is a growing chain of grocery stores with a difference. Whilst not a monstrous chain store, Trader Joe’s emphasises small stores which sell a selection of goods hard to find elsewhere at lower prices. The fact that quality goods come at such low prices is just one reason why the Trader Joe’s company has become so successful. From humble beginnings, the company has now grown into a multi-billion dollar giant. This may seem strange when the small and far less numerous stores of Trader Joe’s are compared to the number and size of stores associated with other grocery store giants. Even so, Trader Joe’s can now boast of two hundred and forty branches across nineteen states. Not bad for a company which started out as a number of convenience stores in Los Angeles in 1958. When competition from 7-Eleven stores threatened, the owner of the stores, which were then called Pronto Markets, decided to expand his business by starting to sell gourmet food at reduced prices. As such, the idea of high quality goods at low prices was started along with the new name, Trader Joe’s, in 1967, named after the owner, Joe Coulombe. A big part of the stores’ success immediately came from the fact that the majority of the produce sold is sold under the company’s private label. As such, Mr Coulombe immediately created a trusted product, which, as it was also cheap, drew in the customers, creating a loyal clientele. As the number of items on sale is accordingly low compared to huge...
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...Trader Joe’s No average Joe Trader Joe’s is an American privately held chain of grocery stores founded by Joe Coulombe. Trader Joe’s have been successful business for long time with their unique innovative strategy of selling natural and organic food products with only one brand of an item for low price. Their unique culture of relaxed beach environment and helpful knowledgeable employees makes their customer to stay loyal to the brand. Eighty percent of Trader Joe’s has in-house products that differentiate them from competitors and hard to imitate. Trader Joe’s target young educated people who want to eat healthy for low prices. They can really expand their business by investing in marketing, social media, loyalty- card program and building parking garages and gain bigger broader market segment in food industry. This also will help them competitive advantage over their competitors as they will have solid brand image and be successful over the long term. SWOT Analysis The strengths of Trader Joe’s are selling organic & fresh grocery at low prices, introducing new products to their stores frequently and offering friendly customer service. Trader Joe’s sell natural and organic food at cheaper price than its competitors. They buy in bulk one item rather than buying lot of similar items, which gives them competitive advantage over other supermarkets. Trader Joe’s introduce 10-15 new products every week and had special season items and; thus customers liked trying new...
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...Trader Joe’s is a privately owned American specialty grocery store chain that specializes in private labeling and providing a unique and fun shopping experience for their customers. The chain comes from humble beginnings as a convenience store in southern California. Joe Coulombe founded the first store in 1958, but at that time it was called Pronto Markets and it was a convenience store in the greater Los Angeles area. In 1967, the name was changed to what we know it as today by Joe himself. This is when he also decided to change the direction of the business away from convenience store products into more of a grocery supplier (“Our Story”). This change was sparked by the rise of the 7-11 convenience stores. Coulombe was worried that those stores would put him out of business so he decided to take a different route and venture into the world of the grocery store (Moskin). The store is known for its’ hawaiian shirt clad employees and the fun, beach and tiki theme that plays heavily into the decor of the store. Coulombe has said that he was inspired while he was sitting on the beach trying to decide how to best handle the new 7-11 competition (Seattlepi). That is where his ideas of tiki torches and hawaiian t-shirts were born. He changed the focus of the store towards low priced gourmet items without any frills to keep it simple. He made his stores small to help keep prices low (Seattlepi). The concept of making the shopping experience a fun and tropical adventure is where Joe...
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...Case Study: Trader Joe’s In 1958, Trader Joe’s first began as a small convenience store named Pronto Markets. Trader Joe’s didn’t receive their Trader Joe’s name until 1967 when they opened up a store in Pasadena. Mr. Coulombe had transferred his stores into an oasis of value and started putting innovative, hard-to-find foods in the Trader Joe’s name. By doing this Trader Joe’s was able to cut costs and save you money. In 1979, Mr. Coulombe sold the Trader Joe’s chain to the Albrecht’s, own about 9,000 Aldi markets in the United States, Europe, and Australia. “Value” is a concept that both Mr. Coulombe and the Albrecht’s take very seriously. Value not only means providing great prices on great products—no sales, no gimmicks, no special shopping clubs to join, no reward cards required for sales, but also by buying directly from suppliers whenever they can by rotating the “not-so-popular” products from the shelves to make room for something different. At Trader Joe’s their philosophy is great food plus great prices equals’ value. To help contribute to that philosophy, Trader Joe’s believes in promoting from with-in. Trader Joe’s believes that it nurtures its employees with a promote-from-within philosophy, and its employees earn more than their counterparts at other chain grocers. Outlet managers are highly compensated, partly because they know the Trader Joe’s system inside and out because managers are hired only from within the company. Future leaders are enrolled...
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...------------------------------------------------- UGBA 115: Competitive Strategy Trader Joe’s Midterm Case Analysis ------------------------------------------------- Jean Carlo Hoyos The Industry The grocery industry in the United States is currently an attractive industry (a.k.a. profitable). This attractiveness derives from the relative low threat of new entrants, low supplier and buyer powers, and low threat of substitutes. The main factors driving these results are the low concentration of suppliers and buyers, the significant barriers to entry due to high up-front investment costs (for infrastructure and distribution channels) and scale economies, low availability of substitutes, and the threat of retaliation from incumbents (by lowering price, for example). However, it is important to note that there is a heated rivalry among incumbents due to low seller concentration, high price sensitivity from consumers, dynamic price changes and strong exit barriers. Refer to Exhibit 1 for a detailed observation of the forces influencing the industry’s attractiveness. The industry offers opportunities and poses threats in several areas. In the economic environment, the rising oil prices increases costs in the supply chain and/or distribution channels. In contrast, the several free-trade agreements with different countries open the doors for a variety of products from abroad at potentially lower prices or higher quality. Also, the proliferation of high end and low...
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...Trader Joe’s (MMLD): Motivation, Management, Leadership & Development Trader Joe’s is a major food retailer who has developed quite the name for themselves. It has well over 350 stores in over 32 states and is expected to continually grow over the next few years (Bond, 2012). For over 50 years, Trader Joe’s has been providing quality customer services, products and a unique shopping experience for its customers. They have come a very long way from when they first officially opened their doors. Trader Joe’s started when its founder Joe Coulombe wanted to find a way to differentiate his 7-Eleven stores (Schermerhorn, Osborn, Uhl-Bien & Hunt, 2012). In the food retailer industry, Trader Joe’s has developed a process that works well and allows them to be a big competitor. To be successful a company has to have employees that can effectively and efficiently operate the business. Trader Joe’s knows all about surrounding their company with quality employees. Making sure they hire the right employees has been one of their main reasons for success (Kowitt, 2010). However, to retain loyal employees it’s very important to have a system in place that motivates employees. Thru motivation companies are able to motivate its which ultimately leads to an increase in job satisfaction and performance. Many companies utilize the Reinforcement Theory to motivate employees. The theory mainly observes the influences that consequences have on individual behavior (Schermerhorn et al., 2012)...
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...Naomi Piché Professor John Burtt BUS 114 Management May 21, 2013 Case Study 1 : Trader Joe’s 1. In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process-planning, organizing, leading, and controlling? -Trader Joe’s demonstrates planning by intending to carry unique products at a low cost within a fun, relaxing environment. Their organizing skills were apparent due to their approach to find unusual foods from around the world, contract directly with manufacturers, label their products with catchy phrases and by maintaining a small stock of each product. Their leadership was exemplified by hiring employees with job skills such as being “ambitious and adventurous” and providing a laid-back atmosphere both for their workers and customers. Their employees had higher pay rates than those that worked for their competitors and had great benefits. Because managers were hired from within, they had an ultimate knowledge-base of how the system works. Also, the employees were encouraged to taste and learn about the products to be able to share with their customers, creating a more involved employee to customer relationship. Regarding Trader Joe’s control, they were able to control real estate costs by buying smaller stores and staying away from “prime” locations. Their “one in, one out” policy to get rid of poorly selling products or have rising costs replaced by new products helped to control costs and also showed their customers...
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...Satisfaction Examine the approach Trader Joe’s uses to promote a positive work environment for its employees. Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. What is the relationship between job satisfaction and job performance? Before we can find a connection between the two, we must first examine how attitude influence behavior. An attitude refers to a “predisposition to respond positively or negatively to someone or something” (Schermerhorn, Osborn, Uhl-Bien, & Hunt, 2012). In other words, it is the way we feel about various things in our environment (e.g. people, school, or work). At work, for example, our attitude depends on how we feel about being there, which influence how we behave. One of the most common job attitudes is job satisfaction. Job satisfaction refers to the feelings or attitude a person has toward their job, either positive or negative (Schermerhorn et al., 2012). There are many factors that are able to affect the satisfaction level within a work environment. Smith, Kendall, and Hulin (1969) designed the Job Descriptive Index to measures these factors. The JDI measures five facets, including satisfaction with: the work itself, quality of supervision, relationship with co-workers, promotion opportunities and pay. These components are important for managers and leaders to be concerned with because they often determine the success of an organization. Trader Joe’s, for example, is a company that...
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...Trader Joe’s: Environmental Risks Which Have Impacted the Company’s Business Operations Peter R. Radulovic BSNS 652 Sustainable Business Practices EMBA – 2 Instructor: Dr. James L. Miles Sr. August 7, 2011 Trader Joe’s consumer business operations have been chosen for evaluation since it sells specialty grocery items and merchandise to the general public. As a result of its unique business operations, Trader Joe’s faces many environmental issues or risks which may have an impact upon its business operations. Trader Joe’s located in Monrovia, California is a privately held chain of retail specialty food stores with approximately 361store locations in 29 states. Unlike traditional grocery store chains which stock tens of thousands of different items, Trader Joe’s focuses on about 4,000 items of which 80 percent bear one of its own private label brand names. Trader Joe’s widely viewed as a “green” company prides itself on being “your unique neighborhood grocery store” which offers low priced products which contain natural and organic ingredients. Trader Joe’s is a product driven specialty business which offers many grocery items which are not normally found at the average grocery store. This type of business environment presents unique challenges, implications and environmental risks which can have a direct effect upon the company’s business operations. In order to live up to its credo “great food + great prices = value” Trader Joe’s has developed relationships...
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...Trader Joe’s 1) In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process – planning, organizing, leading, and controlling? At the stage of planning, Trader Joe’s demonstrate importance by intending to carry unique products at a low cost. About organizing, apparently is demonstrate finding unusual foods from around the world, contracted directly with manufacturers, maintaining a small stock of each product. Their leadership was exemplified by hiring employees with job skills such as being “ambitious and adventurous” and providing a laid-back atmosphere both for their workers and customers. Also, paying higher rates and great benefits to their employees demonstrate a good leadership. Because managers were hired from within, they had an ultimate knowledge-base of how the system works. Also, the employees were encouraged to taste and learn about the products to be able to share with their customers, creating a more involved employee to customer relationship. Regarding Trader Joe’s control, they were able to control real estate costs by buying smaller stores and staying away from “prime” locations. Their “one in, one out” policy to get rid of poorly selling products or have rising costs replaced by new products helped to control costs and also listened to their customers when a product is not appreciated. 2) Trader Joe’s is owned by a German company operating in America. What are the biggest risks that international...
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...Differentiating Between Market Structures in Trader Joe’s ECO/365 Differentiating between Market Structures in Trader Joe’s Trader Joe’s is a grocery store that offers upscale grocery fare such as; organic produce, nutritional supplements, and health foods. Trader Joe’s was founded by Joe Coulombe and started in 1958 as a small chain of convenient stores in Greater Los Angeles Area called Pronto Markets. Since then, Trader Joe’s has expanded and now has around 375 stores in 30 or more states ("Trader Joe's Company Competition", 2012). Trader Joe’s focuses on providing customers with great quality foods that are hard to find, but at a great value that will save customers money. Trader Joe’s has its own specialty line of private label products, their stores are about 12,000 to 15,000 square foot, and have no service departments. This makes it possible for Trader Joe’s to keep costs down. Some of the products sold include, organic foods, unusual frozen foods, gourmet foods, imported foods, vegetarian food, imported and domestic beer and wine. In addition, Trader Joe’s sales non-food items such as; household cleaners, personal hygiene products, pet food, vitamins, and plants. In addition, many of Trader Joe’s products are environmentally friendly ("About Trader Joe's", 2013). Below is an evaluation of Trader Joe’s market structures, competitive strategies, and recommendations. Market Structure Trader Joe’s market may be viewed as a monopolistic...
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...Job Satisfaction Trader Joe Kimberly Love Dr. Thomas Schaefer Business 520 Leadership and Organizational July 20, 2014 Trader Joe’s founder had a perception for his stores after vacationing in the Caribbean. He perceived that the customers would try new things while on vacationing. Also realized that less is better. Many time customers buy more when there is less to choose from in that store. Their attention is only selective when there is not a big variety of supplies. Trader Joe case describes the business practices and how they reinvented themselves. Trader Joe’s set themselves apart from the 7- Eleven style store they had and they became top competitors to Whole Foods and Dean and Deluca giants. The case gives a description on the history of the retail chain and various aspects of its unique business practices. The retail store offered a selection of exclusive, which were mostly private-labeled products, and replaced poorly performing products with new ones. Trader Joe’s is a small supermarket chain which offers a limited selection of unique food products at reasonable prices. It sales most of its products under the private label 'Trader Joe's' and its variants. T.J. targets its stores at highly educated and travelled, but not necessarily wealthy, segments of the population. Trader Joe has a team of experienced buyers, who does extensive traveling and research before bringing new products into the stores (Palmeri, 2008). Trader Joe also avoids the...
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...Unlike another retail stores, Trader Joe’s aims to provide an extraordinary shopping experience unable to be found anywhere else in the perspectives of the following key sources. Store operations: The Stores are small in old strip malls in suburban locations. There are no self-out checkout lanes so the customers had opportunity to talk to employees. Merchandising: It sold mostly private label goods at reasonable price by stocking fewer items, but more line-ups with dynamic mix compared to typical retail channels. Also, it doesn’t follow trends, but tried to sell new products that customers had not experienced previously. Customers: Trader Joe’s had been targeting clearly and not doing one-way communication. Trader Joe’s really understands the characteristics of customers so it enjoyed a cult-like following. Many customers created Facebook fan pages, wrote cookbooks featuring meals prepared with the firm’s products, and waited in line for hours before a new store opens. The company has made consumers so loyal to it. Marketing: Rather than offering any discount coupons, Trader Joe’s distributed a customer newsletter to provide information on certain products. Trader Joe’s doesn’t have its company-led social media strategy. Instead, the company finds a great deal of content generated by fans of the company. Therefore, credibility of customers has become very high because of such a fan base marketing. People: Trader Joe’s has paid staffs more than they...
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...In what ways does Trader Joe's demonstrate the importance of each responsibility in the management process—planning, organizing, leading, and controlling? Trader Joe’s is a company that many fellow corporations aspire to be because of their ultimate success. But how did Trader Joe’s get so successful? Trader Joe’s success built from their understanding that a good team can only succeed if that have a good leader, as in leader I mean manager (which is one of the duties managers are suppose to be on top of). Managers are taught to comply with the four functions that make up the principles of management. These four functions are planning, organizing, leading and controlling. One could say that if a manager does not follow this guideline or a similar personal version of their own, they will not succeed in the management field. So how did Trader Joe’s understand the importance of these functions? First, Founder Joe Coulombe realized there was a gap in the market for grocery stores that offer quality products at low prices. At the time, all competitors either focused on one of the two. One example would be, Whole foods, which focuses on the quality of their food rather than the cost, giving them the nickname of “Whole Paycheck”. Another example, which focuses on minimizing the costs of the food would be Wal-Mart, which promises “guaranteed lowest prices” rather than top quality products. After realizing the need for an improved market, he started the planning to take his little...
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...Whole Foods 365 An analysis of Whole Foods 365’s target market and probability of success in Las Vegas. By Justin Thornley Abstract This report will define Whole Foods 365’s target market. It will then describe that target market. Then the report will make an effort to analyze Whole Food 365’s ability to compete in the Southern Nevada market. Finally, we will look at its competitors and determine if a Whole Foods 365 would be successful. Primary Target Market To find Whole Food 365’s primary target market we will look at the locations of the stores that Whole Foods plans to open. We will then look at the demographics of those areas. The Whole Foods 365 website lists 3 locations with plans to open a stores at each location in 2016. The three stores are located in Los Angeles, CA, Lake Oswego, OR, and Bellevue Square, WA (1). In addition to the city names that the website listed addresses were also provided. * 2520 Glendale Blvd Los Angeles, CA 90039 * 11 S State St Lake Oswego, OR 97034 * 300 Bellevue Square Bellevue, WA 98004 Using the addresses above we can learn more about the demographics and markets Whole Foods 365 hopes to cater to. To do this, the Nielson lifestyle segmentation system will be used. This system allows users to input zip codes and receive demographic information about that area, including information about lifestyle and shopping habits. After analyzing the zip codes from the three stores I found some common demographic themes...
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