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Next Trader Joe's Executive Summary

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Kroger is using cost-based strategy to sell organic products as according to their Executive Vice President Mike Donnelly, their customers are not ready at the moment to pay higher prices for organic products so they target to sell organic products at a price closer to traditional foods and they are happy with small/no margins at the moment (Kowitt, 2015). Kroger is one of the most analytics’ supermarket chains as they are targeting the future because organic grocery products market is expected to grow by 2018 (Forbes, 2015). In the 2014 fiscal year Kroger’s total sales, total sales revenue was $108b and $11b was contributed by organic products whereas Whole foods sales revenue was $14b (Forbes, 2015).
Next Trader Joe’s is also a well positioned rival for Whole foods. They have 461 stores and revenue was $8.63b in 2015 and expected to grow by 2.5% in future years (Business Insider, 2016). Trader Joe’s is voted as the most favourite grocery stores for consecutive three years (Cheng, 2015). They adopted an aggressive expansion plan as they opened 38 new stores only in 2015 (Forbes, 2015). Trader Joe’s imports about 20 to 25 percent of its products, whereas the rest of the products are sold by their own brand name and customers cannot buy these goods under any other roof (Thompson, C-36) there prices are much …show more content…

According to their management, they believe that the Sprouts farmers market is a fast growing differentiated retailer of natural and organic food (Thompson, C-37). The table below clearly illustrates that Sprouts market is continuously growing its sales revenue for the past few years. Only in 2011, they had a net loss because that year there operating cost went up unexpectedly, but Sprouts farmers market very quickly realized that organic food market is very competitive and they had to be very careful with expenses (Marketwatch,

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Trader Joe’s owns 344 food stores in throughout the United States, and is strong example of how to gain the competitive advantage in a large market by embracing their unique approach. In 1967 Trader Joe’s opened their very first store in Southern California. [4] They had started as a convenience store chain called Pronto Markets back in 1958. In 1967 the original founder changed the company’s name to “Trader Joe’s” and opened its doors for the very first time in Pasadena, California. The company holds the upmost pride in the way they service their customers, as well as how they’ve always worked on bringing unusual goods to their wide variety of different customers.

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Trader Joe's success can be attributed to its ability to effectively balance its commitment to quality and price with its emphasis on customer pleasure. According to the authors, the company's innovative approach to the grocery industry, which includes the use of private label branding and selective product sourcing, has enabled it to offer its customers high-quality products at an affordable price

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Company Overview Publix Corporation is consider to be a leading grocery store in the industry. Publix Corporation ranks on the top list of Fortune 500 best companies to work for. Our company currently operates throughout the United States, and is currently seeking to explore business opportunities internationally. Publix Corporation currently prides itself on being a family oriented, and a great place to buy fresh food, while sampling simple ready to eat meals.

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Notably, the three aforementioned organizations do not encompass the plethora of stores nationwide. In fact, in 2014, there were 37,716 traditional and nontraditional grocery stores in the United States (Food Marketing Institute, 2016). Hence, with the number of competitors in the industry, there are sure to be price wars, advertising battles, new product introductions, modifications to their business plan, and increased customer services (Parnell, 2014). Thus, rivalry factors include: high fixed or storage cost structure and the extent to which capacity is added in large increments (Bethel,

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The store began its journey in the United States Supermarket arena as a collection of small convenience stores in the year 1950. It has now evolved into a huge conglomerate in the Supermarket industry specializing in food grocery. While the store’s history dates back to 1950, the actual name of the store that is Trader Joe’s, was given in the year 1967, to a store opened in California. This store had quite a few collections on liquor (mostly wine) along with cheese and nuts. The store is well known for its own brand of food items which has the consumer addicted to it.

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Despite the success of the business, Trader Joe's faces the challenge of rising costs in the international market and the increased cost of doing business in the United States. The company overcomes these challenges by reducing the products that are not making any profit or which have a high turn-over rate as compared to other fast moving food products. Trader Joe’s can resolve these challenges by searching for manufacturers offering the same quality food and groceries at a low price so that the company can sustain and compete in the giant grocery store

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Each of these segments accounts for between 10.0% and 20.0% of annual revenue” (42441 - Grocery Wholesaling in the US). Their market diversification can be identified by their past acquisitions of retailers in different markets, like the 2014 acquisition for US Foods for $8.2 billion. However, this expansion and competitive positioning is further solidified by the fact that in 2013, Sysco spent billions acquiring 14 companies from all over the

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When it comes to specialty food stores, two of the most popular contenders are Trader Joe's and Whole Foods. Both have their strengths and weaknesses of course, and despite the fact that they carry much of the same merchandise, there is undoubtedly a distinct difference between the two. Trader Joe's outlets are generally located in malls, shopping districts, or in residential neighborhoods. The market chain has a decidedly small town or boutique feel to it, and it is closer to the traditional image of a neighborhood market. Trader Joe's outlets are generally located in malls, shopping districts, or in residential neighborhoods.

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They also offer a generous benefits package to its employees. Lastly, the control that Trader Joe’s has is that it is able to control a lot of the costs that they incur. Such costs as real estate. To cut down on the costs of real estate, Trader Joe’s purchases smaller properties for its stores and the properties are not located in a prime location. Also, Trader Joe’s has a strong control over their

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Nancy from Forbes magazine writes, “All demographics—from Generation Z to Baby Boomers--say they would pay more for healthy foods, including those that are GMO-free, have no artificial coloring/flavors and are deemed all natural. ”(Gagliardi) “By late 2010, surveys indicated that 93% of consumers had changed their grocery-shopping habits because of the economic downturn, and many of them did so by trying out more store-branded goods, sampling everything from generic shampoo to generic frozen pizza.” (Tuttle). Kroger had seen this trend and had acted upon this by creating their own line of organic foods.

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Tyson Foods, Inc. Executive Summary Grand Canyon University: AMP-425 July 30, 2014 Tyson Foods, Inc. Executive Summary Tyson Foods is dedicated to producing value for its shareholders, customers, and employees. The company also makes every effort to be faith-friendly, offer a safe work environment, and serve as stewards of the animals, land and environment entrusted to it. It is the vision of Tyson Foods, Inc. to be the world’s first choice for protein solutions, while maximizing shareholder value, living their Core Values, and fostering a fun place to work (Tyson Foods).

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In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their

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Executive Summary Taco Bell is a fast food restaurant chain in America based in California (Grant, 2006). This fast food restaurant specializes in serving burritos, nachos, quesadillas and tacos among other food items in their menu (Grant, 2006). It serves about 2 billion consumers every year in over 6,500 restaurants majority in the United States, where over 80% are operated and owned by independent franchisees in countries including Australia, United Arab Emirates, India, Mexico, Poland, Greece, Philippines, United Kingdom, and Chile among others (Grant, 2006). This fast food restaurant was founded by an individual known as Glen Bell (Walker, 2014). Tacos Bell had a franchise in Dubai shopping mall which was opened in November 2008 and closed

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The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing

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There’s not much scientific evidence that organic food is safer than the traditional food, as conducting such studies is not that easy. Even then the studies done were not really in humans. The one difference though is in the antioxidants but doesn’t prove that human health improves due to more anti-oxidant properties in organic food. While organics have become more desirable by the consumers, but at the same time, it doesn’t hold more nutritional value as oppose to non-organic food. There is one difference in the making of organic food; that is, the chemicals etc.

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