Summary
The company’s key resources include competently and correctly selected staff, an individual style of design of points of sale on tropical and marine themes, a positive trademark image, convenient location of stores, as well as a special set of products sold, created in partnership with other brands and manufacturers. In general terms, Trader Joe’s has a special, unusual, and unsurpassed business model that focuses on human, material, intellectual and financial resources. Thus, the firm offers its customers high-quality and “human” service, unique products, valuable offers at competitive prices, and a cozy atmosphere like “in the good old days.”
Primarily relying on supply chain management and operations, Trader Joe’s has the opportunity to purchase the necessary goods directly from suppliers, labeling them under its trademark. Therefore, from the point of view of distribution, the company may maintain the quality of products by limiting offers. In this scenario, for example, bananas will never turn brown, so that they can be thrown away. Moreover, as part of the service, or marketing and sales of goods, it is essential to emphasize that Trader Joe’s has every chance and possibility to gain special trust and sympathy among consumers as a “neighborhood store,” so “native” and “friendly” in one key. Trader Joe’s does not seek to industrialize and improve internal systems; in a sense, such rejection of novelty has a unique charm and attractiveness. When entering Trader Joe’s store, people most often note the atmosphere of bygone times, giving comfort and warmth, as it was before, when there was no vast abundance of technologies, and people often communicated and interacted with each other. In addition, considering human resource management, the company can implement particular strategies to recruit and retain employees per its values, standards, and requirements for worker competencies.
Resource Sustainability
First of all, branded food products at an affordable price and their differentiation, distribution network, purchase directly from suppliers, excellent quality of customer service, unique marine atmosphere, brand awareness, and other essential elements form the brand’s value and activities in general. In particular, attention should be focused on the structure that ensures the availability of goods to an end consumer, friendly and competently savvy employees who are always ready to help shoppers, and exceptional products that appear on the shelves of Trader Joe’s. Thus, the range of products in the stores is extensive and diverse, selling points are beautifully decorated from the point of view of modern design, and client service is soft and unobtrusive. Secondly, good staff and low turnover, exclusive store style, an exceptional patenting system, a perfect sales network, and much more together represent rare resources that are difficult to reproduce by competitors. For instance, as practice shows, patents are not easily accessible to every business, and a perfect sales network requires significant investments and other resources; staff motivated for high results is quite challenging to find, and not every company can create a unique brand concept.
Thirdly, VRIO’s analysis demonstrated that the firm’s financial resources, distribution network, patents, strong staff, sales network, and branded food products, in some sense, cannot be forged or will be too costly and problematic for opponents. The organization has its style and unique “chip,” an extraordinary approach to recruitment, a good reputation, and a well-configured logistics system that allows one to keep a proper amount of high-quality goods on the shelves at a low price all this is worth a lot. Fourthly, despite some insignificant nuances, Trader Joe’s has a well-organized majority of resources in such a way that it allows the leaders to get more opportunities as opposed to potential threats, show strengths, and eradicate weaknesses. In addition, the following table introduces the company’s VRIO analysis as a table.
Table 1. VRIO Analysis: Trader Joe’s
Trader Joe’s Overall Competitive Advantage
According to the author of this paper, Trader Joe’s overall competitive advantage collectively represents a stable, reliable, efficient, and productive business model for the following reasons. Primarily, in the eyes of loyal customers, the grocery store chain is presented as a “cult” store with an exceptional assortment of goods that are not found in other stores. The firm has a lot of fans who like to share their impressions about food in particular communities on the Internet. Furthermore, Trader Joe’s is known for its “quirky” culture: the interior is made in a tropical and nautical style, and the employees have ship titles. Hence, the company has a clearly defined concepts, values, and standards that are crucial in order to conduct business thoroughly and without mistakes.
Moreover, Trader Joe’s does not resemble its competitors, does not rely on technological innovations, and does not seek to expand its business throughout the United States or the world. In this case, the company is true to its traditions and principles and will not go beyond them, maintaining individual quality standards at the proper level. Moreover, many friendly and hospitable employees are working at each point, always ready to lend a helping hand to clients on their initiative, not just because they are “forced by their superiors.” Consequently, the aspects mentioned earlier form a positive assessment of Trader Joe’s, its good reputation, and its leadership positions in the industry, allowing the company to develop and realize competitive advantages.