Question

Case Study Write-Up #2 is based on the “Trader Joe’s” case found in Strategic Management textbook (pp. C20). Read the case thoroughly and then respond to the questions found below. Use the models, theories, and concepts discussed up to this point in the course to help analyze and provide a complete understanding of how this industry and the companies in them have interacted over time. Each answer can be presented in narrative form or bullet form, depending on which style makes for a more efficient and effective response to the question.

Questions to respond to in writing:

1. Is the retail grocery industry attractive? What are the key success factors for competing in retail grocery?

2. What is Trader Joe’s business-level strategy? That is, how is Trader Joe’s positioned in this market?

3. How does Trader Joe’s operationalize its business-level strategy through functional-level strategies?

4. Why does Trader Joe’s remain privately held? What tradeoffs does this impose?

Answer 1

1) Retail Grocery is an important market as its demand is inelastic. The masses shall surely go for this markets since they need the quality products & services which makes it attractive & eye catching. The key success factors are Price, Quality, Uniqueness, Availability, Timeliness, Tidiness & how quickly will provide to ultimate consumer.

2) Strategy development encompasses carrying highly selective products, offering private-label products, offering small, neighborhood stores that exude warmth, providing attentive employees and offering extraordinary value.

Trader Joe’s is committed to providing selective products that cannot be found in grocery stores. The value that Trader Joe’s offers to customers includes “taste, quality, private labeling and price”

3) The role of Functional Strategy is important for business survival. Functional Strategy are providing support to business straegy

4)Because Trader Joe's has always been a private company and doesn't have any short-term plans of going public.Yes it does, But as with any trade-off, it’s important to understand what is the value, the benefit – and the safety – of what you have traded for