TEMPO CONSULTING Tuan Ngo | Edward Guzman | Minh Tam Tran | Phong Vuong | Oscar Montecino

TEMPO AGENDA CONSULTING Porter’s 5 Forces 1 SWOT Analysis Company Strategies Recommendation 1 2 AGENDA TEMPO 3 CONSULTING 4

PORTER’S 5 FORCES Neighborhood Market Industry

LOW PROFITABLE INDUSTRY RIVALRY Threats of New Entrants Bargaining Power of Buyers Threats of Substitutes Bargaining Power of Supplier HIGH LOW PROFITABLE INDUSTRY HIGH MEDIUM TO HIGH MEDIUM LOW TO MEDIUM

ANALYSIS Trader Joe’s faces Walmart, Target, Aldi’s and others entering the market. Customers have more options to pick from (Supermarket Industry) Substitutions is occurring between online technology (Amazon) High variety of suppliers

SWOT Analysis Trader Joe’s Strength, Weakness, Opportunities, & Threats

INTERNAL Strength Higher Sales Per Sq Ft vs. Competitors Cost Leader Good Motivated Employees Popular with Media Well Known Brand Name Differentiated Private Label Products Weakness Weak Marketing Poor Technology Poor Store Layout/Infrastructure Small Selection of Items Small Target Base Lack of Information for External Users

EXTERNAL Opportunities Neighborhood Market Concept Green Environment Trend Increase in Demand for Diff. Products Cult like Followers Customer Service Trend Threats Large Retailers Gaining Market Share Breach of Information Testco and other Imitators Growing Competition Suppliers Gaining Power

ANALYSIS (SO) Ability to open stores at a low cost + cult like followers = more profit and growth (ST) Use good press to increase market share and take power away from imitators (WO) Solve layout problem to increase customer service (WT) Solve technology problem to prevent competitors from gaining market share

STRATEGIES Customers | Crewmembers | Company

CUSTOMER Target Market Majorities are “high educated, intelligent, & inquisitive” people Price sensitive individuals Advert. Word-of-Mouth Fearless Flyer Concern Long-term: no guaranteed in customer loyalty (families) Not one-stop store (not a lot of different items)

Trader Joe’s Employees CREWMEMBERS Trader Joe’s Employees Wage Benefits Empowerment Discount Learning Opportunity Promotion Diverse individuals with high customer service Endless opportunities Open-minded hiring process Good pay & benefit Employee loyalty

COMPANY Cost Efficient Good Inventory Turnover High Sales

RECOMMENDATIONS Physical Infrastructure | Regional Research | Technology

PHYSICAL INFRASTRUCTURE This encourages poor atmosphere & experience CONCERN Current layout creates frustration among potential customers This encourages poor atmosphere & experience IMPLEMENTATION Improve parking and store layout The top 5 stores with the highest sales will be chosen to remodel and make necessary changes OUTCOME Bring in new customers to help widen our sales and customer base Increase shopping experience and satisfaction

REGIONAL RESEARCH CONCERN Minimal selection of products at certain location. Causes no uniqueness to unique neighborhoods, something we pride on. IMPLEMENTATION Test new products at certain stores across the country. 2 stores in each region will be chosen for the research per 1 year. OUTCOME Increase sales and bottom line for the company Create a close relationship with the customers needs

Causes slow or missing records , & sluggish speed at check-out lines TECHNOLOGY* CONCERN The use of very old technology & program to run store Causes slow or missing records , & sluggish speed at check-out lines IMPLEMENTATION Improve entire system with new and innovative technology 10% of stores across the region within the 2 year span with high traffic OUTCOME Better inventory tracking for future reference High return on investment Faster check-out for higher traffic

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