Question

3) Applying Porter’s Generic Strategies, identify and explain the business strategies of Whole Foods, Kroger and Trader Joe’s. Which are the functions in the organization (e.g. marketing, operations, finance, etc…) that are most important to build the competitive advantage of each of the three companies?

4) What strategic advice would you provide to Trader Joe’s to reinforce its future profitability? Building on your analysis of the strategy of the company and evidence provided in the case, recommend possible solutions you might make to Trader Joe's management. Explain how your solutions are likely to influence the different functions of the organization (marketing, operations, finance, etc..).

Answer 1

Applying Porter’s Generic Strategies, identify and explain the business strategies of Whole Foods, Kroger and Trader Joe’s. Which are the functions in the organization (e.g. marketing, operations, finance, etc.) that are most important to build the competitive advantage of each of the three companies?

Whole Foods:

Whole Food Market uses a broad differentiation common strategy. This separation is achieved through the unique features that determine Whole Food Market output. For example, the company's main selling point is the natural or organic characteristics of the product. In addition, in this joint strategy, Whole Food Market targets all market segments. For example, its products are suitable for all customers regardless of age and gender. The company is effective in using this common strategy, as reflected in the popularity and continued growth of the Whole Food Market brand.

One of Whole Food Market's strategic goals is based on a broad strategy of broad differentiation, which is to maximize product quality. For example, the company is always looking for products with artificial ingredients as little as possible because these products stand out from competitors. Another strategic goal of the Whole Food Market based on its overall strategy is to expand the supply chain. This supply chain involves farmers or producers who comply with the Whole Food Market quality standards.

Trader Joe’s:

The competitive advantage of Trade Joe's is product differentiation. The organization has been able to differentiate its product and come up with a new and unique way of marketing. This approach has worked to influence the market and change the trend in their favor. In line with Porter's generic strategy on cost differentiation, Trade Joe has been able to become a leading brand product making sure that the right approaches have been used to influence how different products have been realized. It is through the process that an identified approach has been used to influence how the products become dominant. Furthermore, Trade Joe's have considered cost focus to be an important generic strategy in establishing a realistic cost for their product. The costs identified have been used to understand how the products identified have the best units that could be relied on considering the manner in which different identifications have been established.

What strategic advice would you provide to Trader Joe’s to reinforce its future profitability? Building on your analysis of the strategy of the company and evidence provided in the case, recommend possible solutions you might make to Trader Joe's management. Explain how your solutions are likely to influence the different functions of the organization (marketing, operations, finance, etc..).

Trade Jos's has great profitability in the future only when they would consider the right approaches to success. The existing limitations need to be addressed in one way or the other to make sure that future profitability has a grounded baseline of change. They should allow proper aspects that will be required to necessitate most of their approaches. Trader Joe's need to look at investing in supervisors to make sure that proper leadership has been offered. When the leaders are considering the right approaches, it would be easy to attain a given success rate without a lot of limitations. There should be a reliable manner of considering different issues to make sure that the right approaches have been completed. Also, Trade Joe's is mandated to redesign their marketing and sales department. Enhancement of the sales and marketing sector would make the organization to be organized and focus on the future establishment.

Having such great capability entails taking greater risks for proper profits. Without the approach of looking at the ways in which different profitability approaches are considered, they will be engaged in manners in which limitations would be attained. Therefore, Trade Joe's should be mandated to looking at the different factors that would limit them and ensuring the most appropriate elements have been attained. This and other important elements would be necessary for influencing and changing how the best alternatives are taken. It would realize the strengths and potentials of the organization in one way or the other.