Trader Joes

Strength

One of the outstanding strength of Trader Joe’s is low price. It is not as easy as we can imagine, because they set low price on healthy food and organic food, which is relatively expensive in other stores. Besides, their products are dynamically mixed and unique, so that consumers cannot buy the same products elsewhere but at Trader Joe’s.

Weakness

There are several weaknesses at TJ. First of all, they are lack of technology elements. TJ does not have any social media, does not have any online shops. Another weakness would be the congestion at checkouts due to the absence of self-checkout lanes. Also TJ does not have enough advertisement involvement.

Opportunity

Using social media and adding e-commerce are the trends for even any business, because people love to use then and they give people, especially young people who are the target population of TJ, convenience and different shopping experiences. Also, providing some common or high-demand merchandise to consumers is another opportunity for TJ, because consumers of TJ used to feel that they cannot get everything on the shopping list at TJ one time.

Threat

Supermarket industry is full of competitiveness. So the biggest threat for TJ is competition. They compete on price, compete on brand recognition, and even imitate each other’s operation models.

Another threat would be continuously emerging e-commerce, which are the people’s propensity to consume nowadays. Trader Joe’s also needed to maintain their low cost structure.

Five Forces Analysis

Threat of New Entrants - Low

We concluded that the threat of new entrant for supermarket industry is low. Due to high initial capital, low profit margin, and high intense competition. It