Trader Joe’s works in an industry where customers easily switch to retailer chains that offer products at low price. This weakens the bargaining power of suppliers. They easily switch from one supplier to another to reduce their cost. Due to this the switching costs for companies is very low. There are numerous suppliers and these suppliers do not offer differentiated supplies. Customers enjoy high bargaining power.Ĭustomer’s threat of backward integration is also moderate.įollowing is the bargaining power of suppliers in the Porter’s Five Forces analysis of Trader Joe’s:īargaining power of suppliers is low. Even the management of products and brands in the retail store is also influenced by the buyers. By offering unique products like Trader Joe’s offering of cult brands or local cuisines, it tries to stay relevant. They can easily switch to another retail chain that offers products at cheaper prices, thus in order to keep up with the demands of customers, Trader Joe’s focuses on quality and competitive pricing to retain its customer base. ![]() Due to the availability of multiple supermarket stores, switching costs of customers is very low. There isn’t direct bargaining power but indirect one due to high competition in the grocery retail chain. In the Trader Joe’s Porter Five Forces Analysis the bargaining power of the customers can be explained as:īargaining power of customers is high.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |