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Trader Joes Case Study Essay

1479 Words6 Pages

8. Offensives to steal customers – There was no mention in the case of “game changing technology or processes” that would give one competitor a distinct advantage over another. Most of the major organic foods retailers seems to have found their niche in the market and as such there does not appear to be any major moves to steal customers. The exception to this maybe Wal-Mart attempting to enter the market with the Wild Oats brand. However, as of 2014 their offerings were quite limited and do not present a significant danger to the established retailers. Furthermore, the market and demand for organics is only growing, thus, the need to steal existing customers may not be present. This factor is rated as weak. 9. Segment invasion by outside …show more content…

Competitor differences in long term objectives, strategy, and capabilities – The only factor that comes into play in this category is production facilities in other countries. WF was the only retailer that was specifically mentioned as going outside the U.S. to find better and more sustainable sources of goods. And, Trader Joes owns or is the sole customer for their suppliers. Other than that, all the major retailers appear to have similar long-term objectives and views of the future as specified in their mission statements. All major competitors have developed and understand the importance of value chain activities, and have thus structured their operations to maximize customer value. This factor is rated as …show more content…

As previously stated the organic segment is growing at a steady pace, and in some cases, faster than producers can manage. WF has maintained a consistent record of store openings every year even during the recession. Trader Joes, Fresh Marker, and even Sprouts have been making significant expansions in store numbers to meet demand for organic and natural products inside and outside of their established markets. Additionally, if a newcomer were to open a store with a successful market strategy, the owners could expect to earn attractive profits despite price points 40% over conventions

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