Supermarket In The United States Of America-Myassignmenthelp.Com

Question: Discuss About The Supermarket In The United States Of America? Answer: Introduction Trader Joes is a leading supermarket in the United States of America. Various reports have ranked Trader Joes on top as a consumers favorite supermarket. In 2012, the company was ranked the 11th among the firms leading in creativity in the U.S.A. the operational locations are spread throughout the U.S with new branches opened in South Carolina, Kentucky, Lexington and Columbia. The industry has many firms creating a competitive market. Regardless of the competition levels, the company has been able to maintain a high profitability brought about by its market power(Slevin, 2017). This report addresses the strategic direction of Trader Joe's touching profitability, business processes, industry analysis and the plans used to tackle competition. Industry analysis The Porter 5 forces Ease of entry The market is open to new firms. Most companies coming into the industry are motivated by the success of Trader Joes. The success of foreign businesses is short lived, and the new stores have recorded in billion U.S dollars and end up failing and finally leave the market. The market indicates that there is a great need for strategic positioning to succeed in the American market(Shelton, 2017). Power of suppliers The vendors sell their items through Trader Joe's with private labels. Most sales for the marketing are generated by the non-private goods. There is a need to be supplied with all necessary products so that customers will make all their shopping under one roof. The suppliers offer Trader Joes a dynamic product mix. The sale of seasonal items makes it necessary to introduce new products every time together with eliminating an equal number. The necessity created seasonally give products the highest demand for sale before the season gets over. Power of buyers The consumer market is vast and sophisticated. Traders Joe's customers primarily visit the stores to find new products. Most consumers aim at finding great bargains. The buyers are well educated creating an honorable population which is a market to supermarket's products because supermarkets are branded as honorable. Many buyers have comparatively low wages and show interest inclined toward products of low prices(Schuler, 2015). Another characteristic of the customers is their classical view. At some point, the share of supermarkets in the grocery market declined because the customers are finding other sellers who offer their products at a lower price. The educated people are labeled as intelligent and inquisitive. Availability of substitutes A variety of alternative products especially in the groceries section competes Trader Joe's. Consumer goods are easily available from the Amazon, Walmart, and other renowned retailers. The strategy of using small stores to avail products to customers. Many supermarkets deal in the sale of whole food products which are of high prices and rarely attract discounts. Competitors The trending strategy of competitors is the move to operate small neighborhood stores(Portnoy, 2010). Strategic competitors like the Walmart is a significant threat to the firm's strategy of small stores. The Amazon in the other hand is also threatening Trader Joes by recently entering the grocery market and its plan to enter more cities. Business model analysis Trader Joes is among the founders of small neighborhood chain. The idea came from the earlier operational models that had small floor sizes. In became easier to invest in more stores due to the low cost of setting up and running. The content displayed is well revealed here. The layout inhibits concealing of items(Hunger, 2011). Over 400 stores spread out to different locations avail goods at the closest point possible to the buyers. The sites have been selected according to the concentration and sizes of the markets in those places(Rajendran, 2012). The investment strategy of the company makes it generate more profits as compared to the competitors. Buyers have revealed to like the chain by its prices and excellent parking lots. The buyers in Trader Joes get a rare opportunity to interact with the employees through what seemed to be the untraditional exclusion of televisions and the self-check-out points. The idea has saved the supermarket a lot of expenses and besides creating value at the service of customers. The personalized service has a benefit of creating trust and loyalty. Who, what, how Competitive advantage The Value chain analysis Trader Joes is differentiated from the competitors in many ways. First of all is the style of dealing mostly in seasonal products. He products identified to be in their demand season will be availed. There is an efficiency in operational expenses because products cannot stay for long before being sold so that operational capital is not held up inappropriately(Hunger, 2011). Operating from small stores is an idea build to enhance accessibility, branding, customer loyalty and to improve the layout. Dealing with whole food especially the grocery has tapped a lot of the necessities market. These products are repeatedly bought, and in short intervals, no wonder they can be eliminated quickly and new products brought in. Small-Sized shops reveal almost every item to be seen effortlessly. There is a strategic advantage in the development ample parking spaces in some outlets. Most of the buyers are the intellectuals and own cars. Their inquisitive nature has created a link between shopping and the car creating a need for awesome parking as a service to them as loyal buyers. The educated people probably CEOs of companies cannot stand under the sun to wait for a parking space to be free(Grant, 2016). The supermarket has declined to use the traditional model of self-check-outs and television screens. It has created an opportunity for human interaction of the staff with the lonely buyers of intellect. A personal touch is designed giving the customers an added value above the product they have purchased(Csiszrik-Kocsir, 2017). A natural person will prefer getting a human experience to a technological service of even providing a visual enhancement to show prices. People and culture The staff of Trader Joe's are substantially motivated by getting good salaries which cannot be compared to other grocers. Health and retirement benefits are available to the workers competitively(Burgelman, 2016). The employees are mostly the technically skilled college graduates and are selected to be outgoing to interact empathetically with customers. The customers happy because of the services they get from the productive employees. Workers are made to take work as parts of their social lives. A new employee will be instilled with the social values through a longer period than even the period for training. Trader Joe's believes that motivation of employees is above training. People are social beings. An employee is encouraged to try every product and made to do any work(Glueck, 2014). Conclusion Trader Joes pace of expansion should be made to exceed the rates of competitors. The development is doing away with the authenticity of neighborhood stores to drop due to the introduction of several bureaucratic involvements. The culture of specialization of employees that is making them start being competitive should be shunned. A new feel has to be kept to reduce the need for new stores. The process of dealing with seasonal products will keep a new feel to the buyers because the products they find on next purchase is new. The neighborhood stores must be reviewed to keep their authenticity. References Burgelman, R., 2016. Fading memories: A process theory of strategic business exit in dynamic environments. Administrative Science Quarterly, 9(1), pp. 24-56. Csiszrik-Kocsir, ., 2017. The Harmony Of Interests And The Strategic Behaviour. Economy Business Journal, 1(11), pp. 359-366. Glueck, W., 2014. Business policy and strategic management. 5 ed. New York: McGraw-Hill. Grant, R., 2016. Contemporary Strategy Analysis. 9 ed. New Jersey: John Wiley Sons. Hunger, D., 2011. Concepts in strategic management and business policy. 7 ed. Mumbai: Pearson Education. Portnoy, S., 2010. Food, Health, and Culture. Health and Economy, 2(17), pp. 1-34. Rajendran, P., 2012. The resource?based view within the conversation of strategic management. Strategic management journal, 13(5), pp. 363-380. Schuler, R., 2015. Strategic human resources management: Linking the people with the strategic needs of the business. Organizational dynamics, 21(1), pp. 18-32. Shelton, L., 2017. Strategic business fits and corporate acquisition: Empirical evidence. Strategic Management Journal, 9(3), pp. 279-287. Slevin, D., 2017. Strategic management of small firms in hostile and benign environments. Strategic management journal, 10(1), pp. 75-87.