Pantry Case Study Summary

However, there are many opportunities for Jamba Juice to grow such as being a healthy alternative to fast food and expanding internationally. Lastly, the threats can be recognized as are that they are high competition, other companies offered similar product at a lower price, high supplier cost, and climate and transportation conflicts. The 5 forces that are related in this case include the threat of new entrants, substitute of product, and rivalry. Many other established fast food restaurants can offer smoothies at a lower and reduce price and also the substitute for their products can be high because the consumers have several options and the ability to make them at home. Rivalry among competitors is also

So what is Trader Joe’s mission, vision and value? Their mission, value and vision is to provide customers the best food and beverage and provide information to make informed buying decisions. There are many unique grocery items and with everyday low prices. They buy their products directly to the supplier and get the best price so the consumer will save money. They also stated that most grocery stores charge the supplier a fee if their product is put in the shelf but not in trader joe which means lower price (3).

Fundamentals of Information Systems Exam Assignment Table of Contents Statement 3 Introduction 3 Case Presentation 4 Theoretical Framework 4 Porter 's Five Competitive Forces Model 1. Degree of Competition 2. Threats of New Entrants 3. Threats of Substitute Products 4. The Bargaining Power of Customers 5.

(Strategic direction: differentiates products based on high quality) Strong Force of Bargaining Power of Customers Consumers of Whole Foods Market have strong bargaining power regardless the weak force of small volume purchases compared to the total revenues of the company. The majority of Whole Foods Market’s target customers is individual buyers who have access to product information they can use to compare with other retailers. If Whole Foods Market fails to satisfy

Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market). Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.

They plan to slowly convert to full organic and natural ingredient by going in increments to slow adjust their business and customer to change. Bargaining Power of Buyers: High In the restaurant industry the customer has high power because of how saturated the market is. Although they have very little control over the price of products, they have low switching cost that allows them to seek the best price. With the numerous restaurants available to customer, it gives them the power to choose other places to eat besides Chipotle. Also, Mexican restaurants like Taco Bell and Qdoba gives customers a substitute for Chipotle’s food.

Consumer Reports magazine reports that Costco is the leader and is the preferred retailer in the opinion of the readers based on factors such as product quality, value, friendliness of store and staff, ease of returning items, and overall service. Costco was also considered the value leader by providing the best bang for the buck. Walmart, Sam’s Club, and Target fell below Costco’s ranking in terms of popularity and value for consumers (Keshner, 2010). Psychographic characteristics typically go beyond the external focus and are not as easy to quantify but do identify why consumers buy a particular product or service (All Business,

This strategy requires low costs reflected through low prices because customers expect significant savings when they buy from Costco. Wal-mart also uses cost leadership generic competitive strategy. To distinguish a part from the Wal-mart’s cost leadership strategy, Costco partly employs broad differentiation as its secondary generic strategy. The secondary generic strategy make the business stand out based on value and quality by using Kirkland Signature, which known as house brand (m.koreatimes.co.kr). Costco’s intensive growth strategy is to remain strong despite of the tough competition with Wal-Mart and local players such as E-Mart, Carrefour, and Sam’s Club.

ALDI supermarkets, a well-known retailer in business, focused on retaining and gaining customer’s loyalty on those who were already familiar with the ALDI brand. ALDI’s main objective is getting its message across which is offering the best quality products at the lowest price possible. One of ALDI’s marketing strategies is the ‘Like brands’ by which ALDI created high quality products similar to those products of a well-known brand and competitors, but with a lower price. ALDI created blind tastes of these ‘like brands’ where people can taste ALDI’s brands and the national brand to see if they can make a

Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.