TEMPOCONSULTING

Tuan Ngo | Edward Guzman | Minh Tam Tran | Phong Vuong | Oscar Montecino

Porter’s 5 Forces

SWOT Analysis

Company Strategies

Recommendation

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3

4

AGENDA

PORTER’S 5 FORCES

Neighborhood Market Industry

RIVALRY

Threats of New

Entrants

Bargaining Power of Buyers

Threats of Substitutes

Bargaining Power of Supplier

LOWPROFITABLE INDUSTRY

HIGH

HIGH

LOW TO MEDIUM

MEDIUM

MEDIUM TO HIGH

ANALYSIS1. Trader Joe’s faces Walmart, Target, Aldi’s and

others entering the market.2. Customers have more options to pick from

(Supermarket Industry)3. Substitutions is occurring between online

technology (Amazon)4. High variety of suppliers

SWOT Analysis Trader Joe’s Strength, Weakness, Opportunities, & Threats

Strength

Higher Sales Per Sq Ft vs. Competitors

Cost Leader

Good Motivated Employees

Popular with Media

Well Known Brand Name

Differentiated Private Label Products

Weakness

Weak Marketing

Poor Technology

Poor Store Layout/Infrastructure

Small Selection of Items

Small Target Base

Lack of Information for External Users

INTERNAL

Opportunities

Neighborhood Market Concept

Green Environment Trend

Increase in Demand for Diff. Products

Cult like Followers

Customer Service Trend

Threats

Large Retailers Gaining Market Share

Breach of Information

Testco and other Imitators

Growing Competition

Suppliers Gaining Power

EXTERNAL

ANALYSIS1. (SO) Ability to open stores at a low cost + cult like

followers = more profit and growth2. (ST) Use good press to increase market share and take

power away from imitators3. (WO) Solve layout problem to increase customer

service4. (WT) Solve technology problem to prevent competitors

from gaining market share

STRATEGIES Customers | Crewmembers | Company

CUSTOMERTarget Market •Majorities are “high educated, intelligent, & inquisitive” people

•Price sensitive individuals

Advert. •Word-of-Mouth•Fearless Flyer

Concern •Long-term: no guaranteed in customer loyalty (families)•Not one-stop store (not a lot of different items)

CREWMEMBERS

Trader Joe’s Employees

Wage

Benefits

Empowerment

Discount

Learning Opportunity

Promotion

1. Diverse individuals with high customer service

2. Endless opportunities 3. Open-minded hiring process4. Good pay & benefit 5. Employee loyalty

COMPANY1. Cost Efficient2. Good

Inventory Turnover

3. High Sales

RECOMMENDATIONS

Physical Infrastructure | Regional Research | Technology

PHYSICAL INFRASTRUCTURE

CONCERN

Current layout creates frustration among

potential customers

This encourages poor atmosphere &

experience

IMPLEMENTATION

Improve parking and store layout

The top 5 stores with the highest sales will be

chosen to remodel and make necessary changes

OUTCOME

Bring in new customers to help widen our sales

and customer base

Increase shopping experience and

satisfaction

REGIONAL RESEARCHCONCERN

Minimal selection of products at certain

location.

Causes no uniqueness to unique neighborhoods, something we pride on.

IMPLEMENTATION

Test new products at certain stores across the

country.

2 stores in each region will be chosen for the research per 1 year.

OUTCOME

Increase sales and bottom line for the

company

Create a close relationship with the

customers needs

TECHNOLOGY*CONCERN

The use of very old technology & program to

run store

Causes slow or missing records , & sluggish

speed at check-out lines

IMPLEMENTATION

Improve entire system with new and innovative

technology

10% of stores across the region within the 2 year

span with high traffic

OUTCOME

Better inventory tracking for future reference

High return on investment

Faster check-out for higher traffic

QUESTION?