GBA 490 Written Case 1

Andrew Wash
GBA 490-321
Written Case 1
February 12, 2014

Table of Contents
Issue #1 ……………………………………………………………………………… 2
Issue #2 ……………………………………………………………………………… 3
Issue #3 ……………………………………………………………………………… 4
Recommendation ……………………………………………………………………. 5
Dominant Economic Characteristics ………………………………………………... 7
PESTEL Analysis …………………………………………………………………… 8
Five Forces Analysis ……………………………………………………………….. 10
Drivers of Change in the Industry …………………………………………………... 12
Current Strategy …………………………………………………………………….. 13
Competitor Analysis ………………………………………………………………... 15
SWOT Analysis …………………………………………………………………….. 17
Financial Analysis ………………………………………………………………….. 19

Issue #1 Trader Joe’s first problem is that information is occasionally leaked regarding the identity of their private label suppliers. Trader Joe’s thrives off keeping the identity of their suppliers a secret to all consumers and media in order to maintain the integrity of their products. Since 80 percent of the products sold at Trader Joe’s are private label, the identity of the supplier is not known because the product is sold under the Trader Joe’s brand name. Information leaks regarding Trader Joe’s suppliers could damage their brand image because it could cause Trader Joe’s to lose its charm to consumers and because it could make other companies wary of supplying their goods. First, information leaks could cause Trader Joe’s to lose its charm in the eyes of the consumer. There were news reports spread within the last few years saying that Stonyfield Farm supplied Trader Joe’s yogurt and Frito-Lay supplied the retailer’s pita chips. Although these reports could have been fabricated, the idea that Trader Joe’s products are no different from that of other grocers would cause their unique brand image to weaken. Consumers might begin to think that Trader Joe’s offers the same products as everyone else, so they can shop at another grocery retailer to get the same product at a lower