Pest Analysis

Title page

Table of content

Executive summary:

Introduction:

Trader Joe’s entered the market in 50s as Pronto Markets, later in 67s the founder changed the name to Trader Joe’s. the concept which the founder believed in was VALUE. The company always see that they get best for best price and give the best to customer at best price. They main business trick was to keep their cost low compared to competitors and believed that each penny they save in getting stock is directly proportion to customer saving each penny.

Trader Joe’s first started their business in California with wines and it was marked as the best place to go for wine in Californian during 1960’s. they attracted customers by their special attire re nemagazines. They started grocery with new label called Granola.

They came up with new innovative ideas which helped to attract customers and were also social responsible.

• The first reusable, “save a tree” shopping bag.
• The first organic items. And lot more.
• They also removed products from shelf containing artificial flavors, colors.

Trader Joe’s different from its competitors:

Trader Joe’s introduce 10 to 15 new products every week and eliminate 10 to 15 products from shelfs every week.

• This is making customers to come back again and encouraging them to try new products.

They do not have online shopping.

This makes customers to come to the store enjoy the stories of Trades joe’s feel the products and its essence. They wanted to keep the theme of physical grocery store next door.

They expanded their business to different parts of USA and now they own 400 stores. Now they want to try their luck in London, ON. They believed in great price plus great value equals to great value.

PEST analysis is the tool used to measure market potential mainly to understand weather the market growth is growing or declining. Before a company plans to enter into new market either in local or global market it is important to study the potential, sustainability and attractiveness for that business in that market.

PEST analysis is also used to assess the business and decision making. PEST analysis helps to develop strategies and think proactively rather than reactive. It is always suggested to use some measuring tools to analyses the scope for business.

[pic 1]

http://www.traderjoes.com/our-story

http://www.traderjoes.com/our-story/timeline

PEST analysis:

Political factor:

Political factor of Trader joe to enter London market depend upon following issue.

The Government policies of Ontario government: - 

Trader Joe’s is an international brand and Canada is a multicultural country. There is some soft corner for local company, so there is some obstacle for Trader joe’s, instead of Canada and America are some agreement so that when American company like Traders joe’s come to Canada they need some margin here to support the business.