Problem
Use the HBR Trader Joe case study to answer:
A. Use Porter's Five Forces to conduct a brief analysis of the traditional supermarket industry only (defined here as including Kroger, Safeway, and Supervalu). Be sure to rate each force as high, medium, or low. Next, how does each force affect Trader Joes?
B. How does Trader Joe's establish competitive advantage over its rivals? Use Porter's value chain model to categorize Trader Joe's strategic activities and indicate how each activity combines with other activities to build competitive advantage (e.g., what marketing activities do they undertake and how do these relate to activities in other areas)? Note that there are no activities in the outbound logistics or service sections.
C. What activities does Trader Joe's not engage in, and why does this make sense given their business model?
D. What are the main threats to Trader Joe's competitive advantage? Is their advantage sustainable?