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

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

3. PORTER’S 5 FORCES Neighborhood Market Industry

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. STRATEGIES Customers | Crewmembers | Company

11. 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)

12. 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

13. COMPANY
Cost Efficient
Good Inventory Turnover
High Sales

14. RECOMMENDATIONS Physical Infrastructure | Regional Research | Technology

15. 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

16. 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

17. 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

18. QUESTION?