-) on the shelves and used own label

-) Trader Joe has several competitive strategies to gain advantage over its rivals but it implements the differentiation strategy the best. Trader Joe’s supermarket provides selective goods and private brands which are commonly not available in grocery stores because the company put its own products on the shelves and used own label names which reflects the nature of the product. Those own brands of the market are tested for the taste and they do not contain any artificial colors, flavor, preservatives or genetically modified ingredients despite of most of the other brands in the marketplace. Also, the company was selective about choosing the product which are going to stocked and it didn’t charge slotting fees to suppliers for putting their product on the market’s shelves. By this way, the market utilized from economies of scale which helps to obtained through high volumes of products and low prices and costs for quality products that are going to be served to customers. However, Trader Joe was perceived by the analysts which told him that the customers feel better in the choosing process while there are fewer options in the marker. That is why he had a reputation of selecting the goods very carefully and causing customers to be loyal to market’s products. As a result of providing high volumes of narrower product line, company experienced a decrease in supply and inventory carrying costs. In brief, Trader Joe implemented a differentiation strategy by differing itself from other grocery store chains through providing private labelled products which have good taste and high quality at a lower price.
SWOT Analysis
• Diversification of Product and Brand
His supermarket has wide range of products and private brands which help to satisfy the customer needs and increase the attraction of customers to his stores. Also, supermarket differs the base of products and brand appeals by providing other national and unique brands.
• Decentralized Operations
Every store has an independent business and the decisions related to operations, HR, marketing, merchandising etc. are made by the local administration within this aspect. With the help of this kind of organizational structure, company can arrange the supplies according to the local demands and respond the changing needs in the real-time basis.
• Strong Market Position
Since the market has been present from 1958, it obtained loyal customers and strong relationship with its suppliers. It became one of the leading supermarket in the US which helps attracting more customers.

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