Swot analysis

Trader Joes: SWOT Analysis Trader Joes is a chain of grocery stores headquartered in California. It was founded by Joe Coulombe in 1958. However, it is owned by a German family trust now. Even though it has around 400 stores as of now, more than half of these stores are located in California. This paper briefly analyses the strengths, weaknesses, opportunities and threats of Trader Joes.
Low prices, excellent brand value, new products & services, excellent supply chain, and a huge loyal customer base are some of the strengths of Trader Joes. Being one of the largest grocery chains not only in America, but also in the world, Trader Joes enjoys huge popularity among consumers in America. Sustainable business practices and strong commitment to corporate social responsibility are other major strengths of Trader Joes. “ Trader Joe’s is committed to providing selective products that cannot be found in grocery stores” (“ What is Trader Joe’s Strategy?”). In other words, unique products are the major strength of Trader Joes.
Expanding global market, growing demand for organic foods and growing ecommerce opportunities are providing many opportunities to Trader Joes. India and China like Asian countries are developing rapidly at present provides excellent opportunities to Trader Joes like companies.
Product recalls and the increased focus on some geographical areas alone are some of the weaknesses of Trader Joes. It should be noted that Trader Joe has limited presence outside California. Inability to expand business to other territories not only in America but also in other parts of the world is some of the major weaknesses of Trader Joes.
Increasing manpower cost, increasing competition and the entry of substitute products are some of the major threats of Trader Joes. Manpower cost in America is extremely higher compared to that in countries such as India or China. As a result of that Indian and Chinese products are causing big threats to the products of Trader Joes.
Works Cited
“ What is Trader Joe’s Strategy?”. My Strategic Plan. Web. 13 July 2013.