What Is Trader Joe Competitive Advantage

From the beginning of its creation, Trader Joe had a vital competitive advantage because of its founder Joe Coulombe. Trader Joe was found in 1967 by Coulombe as a result of the increased education throughout the United States. Coulombre located his stores near centers of learning in order to exploit the overeducated and underpaid people that composed his target market. According to Coulombe, strategically targeting classical musicians, museum curators, and journalists is the reason for Trader Joe’s good press. Environmental scans helped Coulombe identify trends, such as the increase in the demand for natural and organic foods, and cater to his target market by providing products such as the California wines. Coulombe’s perceptual acuity and strategic leadership established a competitive advantage that set Trader Joe on a path to success by establishing the South Seas culture, focusing on the quality of his employees, and implementing an “everyday low-pricing philosophy”. Eventually, its culture, competent employees and low pricing methods became competitive advantages to Trader Joe.

While Its competitors ranged from 40,000 to 50,000 square feet in selling space, Trader Joe’s stores preserved a size less than 15,000 square feet. Because of the small size of the stores, it lacked the wide aisles that its competitors had, but that did not hinder its competitive advantage. The small size of the stores allowed a chevron design that helped it differentiate the interior layout of its store and arrange the passageways in a way that let customers see the content of the shelves at their arrival. Uniquely, its small size and chevron design complemented Trader Joe’s unregimented persona and enhanced its unique identity with its customers, which can be credited for an increase in