Trader Joe's, founded on the idea of unique product offerings at a great price, is amongst the top performers in the supermarket industry. The company utilizes a combination business-level strategy by focusing on both the cost leadership and differentiation strategies. The target customer segment is broad and includes all consumers who purchase grocery items. Although most consumers of Trader Joe’s enjoy the healthy options offered and compare the company to smaller niche supermarkets, any consumer can shop at the various locations. Within this segment, Trader Joe’s utilizes the value of the products as well as unique offerings compared to those available from competitors to set itself apart. Trader Joe’s does not offer as wide variety of products as other supermarkets; however, the differentiation is in terms of the inimitable products that they do offer. …show more content…
It's biggest R&D expense is for its top buyers to travel the world looking for new, trendsetting items..." (Hill pg C-71). Also mentioned is that suppliers do not pay fees for shelf space, rather they compete to earn their spot. Many of the items offered are Trader Joe’s own products masked with variations of the brand’s logo on the packaging. This shows that the company emphasizes their R&D while also using bargaining power with product suppliers to keep lower costs, which are two of the criteria for a combined strategy. The differentiation is not exclusive to products, as it also encompasses the level of service offered by employees at Trader Joe’s in comparison to the competition. Trader Joe’s participates in many activities to support their combination business-level