Trader Joe uses differentiation strategy to get a competitive advantage over the potential competitors. They make the products look different of those of competitors by incorporating customized features in packaging. With affordable prices, Trader Joes recognizes the optimal structure for its target market. For instance, Whole foods does not emphasize price but it does aim to offer organic and grass-fed foods. On the other hand, Trader Joes created a new style of grocery that could offer low prices of new and exotic food items. They do this by not overstocking their inventory; they keep only what sells on the shelves or they will only carry one brand of a certain item, by doing this they have gained much customer loyalty. This strategy works