SWOT Analysis of Trader Joes - Essay Example

Trader Joe's: SWOT Analysis Trader Joe's 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 Joe's. Low prices, excellent brand value, new products & services, an excellent supply chain, and a huge loyal customer base are some of the strengths of Trader Joe's.

Being one of the largest grocery chains not only in America but also in the world, Trader Joe's enjoys huge popularity among consumers in America. Sustainable business practices and a strong commitment to corporate social responsibility are other major strengths of Trader Joe's. “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 Joe's. Expanding global market, growing demand for organic foods and growing e-commerce opportunities are providing many opportunities for Trader Joe's.

India and China like Asian countries are developing rapidly at present providing excellent opportunities to Trader Joe-like companies. Product recalls and the increased focus on some geographical areas alone are some of the weaknesses of Trader Joe's. It should be noted that Trader Joe's has a limited presence outside California. The inability to expand the business to other territories not only in America but also in other parts of the world is some of the major weaknesses of Trader Joe's. Increasing manpower costs, increasing competition, and the entry of substitute products are some of the major threats to Trader Joe's.

Manpower cost in America is extremely higher compared to that in countries such as India or China. As a result, Indian and Chinese products are causing big threats to the products of Trader Joe's.