Trader Joe’s is an example of a niche grocery store that uses a focused differentiation strategy to gain a competitive advantage over the grocery chain market. The stores are small and are placed in areas of educated, mid-income populations. Their products are uniquely packaged, mostly organic, and 80% of the products are the Trader Joe brand. This strategy cannot be duplicated as no one else can offer the brand, therefore Trader Joe’s can keep their prices low (Lutz, 2014). Good quality products that are inexpensive and a positive reputation keep the customers coming back.
Providing excellent customer service and treating their employees very well is another example of their strategy against their rivals. Management realizes that their employees