Discusion

Please answer one or more of my questions below after you read the assigned article and watched the video. You may also comment on each other's responses, or defend your own answers. This will be counted toward your individual participation, so if you usually feel shy to speak up in class, this is a great opportunity for you to participate*.

1. Consider the 5 forces of the grocery industry. In what ways does Trader Joe's (TJ) strategy neutralize the threats posed by various forces of the industry? Please be specific.

2. Trader Joe's strategy may be categorized as "Integrated Cost Leadership/ Differentiation". Yet, as we mentioned before, many businesses that attempt to pursue this strategy would get "stuck in the middle." Why has TJ been able to achieve both low cost and differentiation without getting stuck in the middle? Please identify one key reason. (Hint: pls consider some of the trade-offs that TJ has made.)

3. Please draw a value curve for TJ and post on the board (hint: refer to the "Value Innovation" article).

* Note that quality matters more than quantity when it comes to your participation and contribution.