What is Trader Joe’s Competitive Advantage? Use the Value Chain Analysis to identify
Trader Joe’s Competitive Advantage. Trader Joe’s Value Chain Diagram (1 page in
appendix). Analysis, discussion and clear identification of competitive advantage (1 page
max)
Trader Joe’s stands out from all the rest in the supermarket industry because of below
competitive advantage.
- Company stocked limited varieties of each product, its buyers purchased very large
quantities of each SKU at low prices. - Having unique products
- One or more employees in each store served as the resident artists who produced
quirky hand-written signage - 80% Trader Joe’s store consisted of private label items
- Purchase goods directly from manufacturers, rather than working through
distributors or wholesalers - Did not charge suppliers to slot their products on the retailer’s shelves, unlike many
rivals. - Paid its suppliers promptly, rather than trying to stretch out its accounts payable for
as many days as possible - Required its vendors to maintain complete secrecy about their relationship with the
retailer - Did not want rivals or customers to know how and where it sourced its private label
goods. - When new employees came onboard, they received 10 days of training.
- No gimmicks because they did not offer or accept coupons
- Good locations as they opened in East Coast in Boston area had more universities
than virtually any metropolitan area - Crewmembers learned how to do every job in the store
- Helping customers should always take priority over stocking shelves and walked
- with them to the product’s location rather than just directing them to a particular aisle
