1

1) An identification of 3 key challenges facing the focal company;
Geographical Location: It has become a challenge for the company to grow in new locations with maintaining the culture and beliefs of the company to all the geographical locations.
Online Presence: Trader Joe’s has a very minimal online presence which limits the customer reach, Trader Joe’s has prevented investing in technology and has little social media presence which makes it easier for other companies such as Amazon to enter in the competition.
Competition (Threat of new entrants): Trader Joe’s has differentiate itself with unique business practices like decentralized operations, strong brand image and market position. Yet, there is a threat of new entrants who can imitate the core competencies of Trader Joe’s. Like Tesco who tried to copy Trader Joe’s concept but failed.
2) Discuss how concepts from the assigned chapter can help us understand each issue at hand
General environment: Trader Joe’s has a unique cultural environment. They pay their employees well and give them through training which creates a generalist not specialist approach in the work environment and outstanding customer service . This type of environment influences the performance of the company, its strategy and the industry.
Barriers to entry: Trader Joe’s prevent in utilizing the technology and has very less social media presence. If the company adapts new technology, grow their social media presence and incorporate e-commerce then this might create stronger barriers to enter the market.
Key Success Factors: Trader Joe’s Core competence is its Value chain. They have adapted an effective strategy of differentiating itself with other companies in the industry. Trader Joe’s has developed a unique culture in the industry. However, as the company expands, sustaining this culture can become more challenging and can become a threat.
3) Your strategic recommendation as to how the focal company.
Trader Joe’s should continue to grow nationwide with more number of stores, They should invest and update the technology, grow the social media presence, build e-commerce platform and can implement more modern marketing strategy to reach more number of customers.

x

Hi!
I'm Dora

Would you like to get a custom essay? How about receiving a customized one?

Check it out
x

Hi!
I'm Barry!

Would you like to get a custom essay? How about receiving a customized one?

Check it out