Firm+Analysis+Part+2+and+3

** Issues ** // Seafood Policies // Trader Joe’s seafood policies have been widely criticized by the media. Fish, such as Chilean sea bass and orange roughy, although nearly extinct, still find a way to make it to their shelves (Greenpeace, 2009). This presents the company with major problems as many of its environmentalist customers support the green trend and the preservation of wildlife. According to Traitor Joe’s website, an anti-Trader Joe’s marketing campaign by Greenpeace, “14 of the 22 red-list seafoods” are stocked in their stores (Greenpeace, 2009). As a result, in a media release on June 30, 2009, Greenpeace ranked Trader Joe’s number 17 out of 20 on their “Sustainable Seafood Scorecard” (Greenpeace). The widely publicized campaign, led by Greenpeace, has required management at Trader Joe’s to re-evaluate their products in an effort to conform with sustainability policies (Maestretti, 2010). According to Ami Cholia, red-list fish are “fish that are over fished and need to be conserved in order to survive” (2009). To comply with public demand for quality, non-endangered species, Trader Joe’s has removed two of the 14 red-list seafood products (orange roughy and red snapper), with promises to have all remaining unsustainable seafood out of their stores by December 2012 (Maestretti, 2010). This is threatening to the company’s business because it could potentially lose customers. Some of its consumers, particularly those that are “eco-minded,” may choose to shop elsewhere during this two-year-period or until the company officially removes the endangered fish. // Lack of Feedback Support // Trader Joe’s lack of feedback support and customer outreach greatly hinders the relationship it attempts to establish with its consumers. According to Jena McGregor, the absence of the option to contact the company by e-mail through its website, in addition to the toll free customer service number that only gives automated information about store locations, limits the personal relationships that can be formed with consumers (McGregor, 2004). How will the company know how to respond accordingly and/or take action when customers do not know where to turn when they have concerns, questions, or complaints? This policy decreases brand loyalty and customer support, elements that are crucial to the successful operation of a business. ** Strategy ** Trader Joe’s is a small United States grocery store chain operating 344 stores that boast natural, high-quality food and grocery products (Kowitt, 2010). It prides itself on employing outgoing, social individuals in order to connect with its customers on a personal level (McGregor, 2004). In addition to its engaging employees, Trader Joe’s utilizes a sampling marketing technique to promote its products to consumers (McGreggor, 2004). According to Jena McGregor, “employees can open any product a customer wants to taste and are encouraged both to recommend products they like and to be honest about items they don’t [like]” (2004). Employees are one of Trader Joe’s most essential assets and aid in the company establishing a strong reputation for customer service. This is a crucial part of the firm-customer relationship aspect of product differentiation (Barney & Hesterly, 2010). While Trader Joe’s operates in much smaller locations than the average grocery store, it still manages to employ an efficient inventory system (McGregor, 2004). Although not a cost leader per se, the company benefits from economies of scale through its offering of high-quality products at low prices: since Trader Joe’s “carries fewer products, its volumes are higher, giving it bargaining power when negotiating with its coveted suppliers” (Tobak, 2010). In addition, Trader Joe’s turns over its inventory quickly, pulling products that do not sell in order to provide space for items that will (McGregor, 2004). This operation of inventory efficiency is not only a cost benefit for the firm, but also another way to differentiate themselves through the incorporation of new, exciting products regularly.
 * #2: **// Use research and data analysis to identify issues and strategy in your company. //

** #3: **// Interpret the results of your analysis and draw logical conclusions regarding your firm’s competitive position. // ** Competitive Position ** By employing a product differentiation strategy, Trader Joe’s maintains an average competitive position in the grocery industry. With significantly larger competitors, such as Safeway or Kroger, which employ cost leadership strategies (Barney & Hesterly, 2010), Trader Joe’s has little hope of acquiring a majority of the market in this industry. However, being a small company seems to be what Trader Joe’s is after (Whittemore, 2007). With over 80% of its inventory sold with the Trader Joe’s brand, its ability to vertically integrate backwards has allowed Trader Joe’s to enjoy profits equivalent to those of its larger competitor, Whole Foods (Kowitt, 2010). According to Kowitt, the private company’s sales reached around a whopping $8 billion last year (2010). By marketing themselves to consumers interested in purchasing natural and organic groceries from a “neighborhood store”, Trader Joe’s has been able to maintain their competitive position in the industry (Kowitt, 2010). However, their inability to obtain customer feedback, small operating spaces, and controversies over products threaten its future (McGregor, 2004). While gathering feedback is important, what you do with that feedback is even more vital when it comes to strategy. Without regular feedback at all, your efforts in establishing any sort of strategy dwindles, as there is no way to compare new implementations to the current business practices (Barney & Hesterly, 2010).

__ References __ Barney, J. B., & Hesterly, W. S. (2010). //Strategic Management and Competitive Advantage: Concepts.// Upper Saddle River, NJ: Pearson Education Incorporated. Cholia, A. (2009). //The Greenpeace vs. Trader Joe’s Sustainable Seafood War//. Retrieved from http://www.huffingtonpost.com/2009/07/13/the-greenpeace-vs-trader_n_230891.html Greenpeace. (2009). // More than Half of Leading U.S. Supermarkets Show Progress in Latest Greenpeace Sustainable Seafood Scorecard //. Retrieved from http://www.greenpeace.org/usa/en/media-center/news-releases/more-than-half-of-leading-u-s/ Greenpeace. (2009). //Traitor Joe’s – Products//. Retrieved from http://www.traitorjoe.com/products.htm Kowitt, B. (2010, August 23). Inside the Secret World of Trader Joe’s. //Fortune.// Retrieved from http://money.cnn.com/2010/08/20/news/companies/inside_trader_joes_full_version.fortune/index.htm Maestretti, D. (2010). //The Eco-Myth of Trader Joe’s//. Retrieved from http://www.utne.com/Environment/The-EcoMyth-of-Trader-Joes.aspx McGregor, J. (2004, October 1). Leading Listener: Trader Joe’s. //Fast Company Magazine//. Retrieved from [] Tobak, S. (2010, August 26). 10 Secrets to Trader Joe’s Success. BNET Interactive Business Network. Retrieved from http://www.bnet.com/blog/ceo/10-secrets-to-trader-joes-success/5442. Whittemore, C. B. (2007). //Trader Joe’s – Where Value Drives the Brand//. Retrieved from http://flooringtheconsumer.blogspot.com/2007/04/trader-joes-where-values-drive-brand.html