Question

In: Operations Management

Does Trader Joe's have a dual advantage? Briefly describe why or why not?

Does Trader Joe's have a dual advantage? Briefly describe why or why not?

Solutions

Expert Solution

Trader Joe's is a grocery store chain in the US, founded by Joe Coulombe, headquarters in Monrovia, California. Trader Joe's competitive advantage is to provide highly selective products, private label products, and providing extraordinary value with the best attentive service from employees.

Yes, Trader Joe's has a dual advantage in terms of differentiation and low-cost product for its customers. Trader Joe's has the products at a low cost with the best quality and a well-known brand name that increases the value for customers.

It provides products that are not available at any other groceries stores and does not provide commodities. Trader Joe's is known for providing value for quality, taste, private labeling, and price to the customers. Trader Joe's has a unique branding strategy from other grocery store chains.

Trader Joe's provide the best quality products at the lowest cost as compared with its competitors.

Trader Joe' does not use television and newspaper advertisement but the company uses everyday low pricing philosophy.

Trader Joe's is able to reduce the price because most of the products are made in house and directly supply from the manufacturers or local suppliers. The other reason is to have better and tight negotiation deals with its suppliers.

Trader Joe's product looks different from the market as it provides customized features of packaging. This strategy helps customers identify the products in the market and improve their reputation.

So these are the way, Trader Joe's is able to get dual competive advantage in the market.


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