Introduction As the world we live in today continues to flatten, new channels begin to emerge across the globe. The technological age that we live in today has forever changed they way retailing functions, creating new opportunities for international success. However, the thought of internationalization can be daunting for many retailers, especially due the large history of retailers who have expanded internationally and then failed. Although this type of expansion can be overwhelming, if done properly, the new retail format can generate a great deal of success for the retailer. Trader Joe’s is a small, American grocery store chain that would benefit from expanding internationally into the Canadian market. As we have seen in recent months, Target Corp. just pulled all of their locations out of Canada, but this is largely due to the fact that their international strategy did not fit well with the Canadian market. This paper will outline why Trader Joe’s is a good retailer for international expansion, why Canada mixes well with their business strategy as a country to expand to, the strategic plan Trader Joes should engage in during expansion, and five strategic recommendations that lead to Trader Joe’s advantages in …show more content…
Their assortment includes a wide variety of their niche cult following products along with the everyday essentials. Trader Joe’s specializes in natural, organic, and gourmet products. The merchandise assortment when entering Canada must remain limited and carefully edited, keeping the with the average SKU count between 2,500 and 4,000 that consists of 80% private label goods (Watson, 2014). The product categories offered would include bakery, beverages, dairy, frozen, grocery, produce, refrigerated, snacks sweets, and supplements. Trader Joe’s should initially exclude the inclusion of beer and wine in their Canadian assortment to avoid complications with Canadian liquor
As retail commerce increasingly moves online, the Canadian retail space has proven to be challenging for such giants as Sears and Target and yet some Canadian Companies have become successful, the question is how and can the success last? Founded in 1978 and having grown to an organization with 850 employees and 17 stores across Canada and with combined annual sales of 100 million, Lee Valley Tools has grown into a successful Canadian manufacturer and retailer of Gardening and Woodworking products. In an age of increased online purchases and the predicted “death of retail” Lee Valley has consistently succeeded in a very tough industry due to a combination of excellent corporate culture, customer service, as well as an ability to successfully
International Expansion Question 1: The decision criteria by Ruth’s Chris to expand internationally include product development, diversification, penetration, and market development. The product development phase targets introduction of new types of restaurants in current markets. Ruth’s Chris did not put considerable importance on this approach. Since the company had established 92 fine dining steak establishments, the firm did not see a major need.
Who here has ever been to dunkin doughnuts? Who has here been to Tim Hortons? Tim hortons is a Canadian multinational fast food restaurant known for its coffee and doughnuts. Tim Hortons was a hockey legend in the 1964, who opened his first coffee and doughnuts store in Hamilton, Ontario and created a trend that has led to a million-dollar franchise. In my speech, I will be discussing the importance of opening more Tim Hortons branches in the United States of America.
Case for Analysis - Option 2 Niche markets have an opportunity to differentiate from other stores that offer similar goods and services. It is through differentiating that a company can prevail and become profitable; however, it can also lead to a smaller market segment which can reduce volume sales. Small convenience markets are located on innumerable corners across every town; consequently, the majority sell similar goods and competition is fierce. Large chain supermarkets such a 7-11 have bulk buying power which, enables it is sell goods at a lower cost and still make a profit. The bulk buying power can create a competitive edge that smaller locally owned shops cannot compete with.
My group consisted of Sonja Huff, Niza Zamudio, and Anna Rowland. For this project, we were allowed to use $2 for the entire day on breakfast, lunch, and dinner. For breakfast and lunch, we used 50 cents each, and then for dinner we pooled what was left and had $4 to make a joint dinner. My breakfast and lunch consisted of scrambled eggs. I used three eggs, which is about $1
Although the Loblaw has majority market share holds, the company faces intense competition from many types of grocers such as Sobeys Inc., Metro Inc., Walmart; and many types of non-traditional competitors, such as drug stores, warehouse clubs and specialty stores (organics & ethnics). High rivalry intensity makes an industry more competitive and potentially decrease profit margins. Entry Barriers: As there are fierce rivalry between competitors, the barriers to entry in the Canadian grocery market is high. The large food retailers account for the majority of the market revenue in Canada. Thus, smaller interdependent retailers can’t really compete with such-alike Loblaw or Sobeys or Walmart.
In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their
Walmart is one of the largest retailers in the world. It is a company that produces cheap products to sell and operate in over 30 countries in different places of the world. More specifically, it has 380 retail stores in Canada that sell goods and groceries. They are proudly working with Canada to have a direct effect on its people, environment, the community and ethical sourcing. Depending on our point of view, Walmart has it own advantages and disadvantages for Canada.
Considering using more technology inside Trader Joe’s would also speed up business inside Trader Joe’s. 5 – Conclusion This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious.
Unit VIII Case Study In this case study of Chicago food and beverage company: The challenges of managing international assignments talks’ bout a food and beverage American multinational company that was established in Chicago in 1963 (Bodolicia. V 2007). The article stated that this Chicago Company is expanded all over the United States. From cities like New York, Los Angeles, Atlanta and Portland (Bodolicia 2007).
CSR Audit Assignment – Tim Hortons Economic Responsibility: Tim Hortons demonstrates economic responsibility, by ensuring long-term value for their stakeholders and the economy. Tim Hortons maintains their economic responsibility by creating products that offer a balanced nutrition to represent the needs of a changing society. This guarantees that consumer’s demands are met and helps to attract more customers and generate greater revenue. In addition, this fast food chain engages with its stakeholders by meeting with them regularly to help them inform them of any risks and opportunities associated with Tim Hortons. Tim Hortons also performs a thorough assessment of business risks and opportunities in their annual report.
In order to be succeed on international market, it’s very important point to define the international strategy. If to define the international strategy: an international strategy is when a company hires a strategy through which its goods and services are sold out of its local market. Enlarging into international markets allows potential opportunities to companies. Let’s see the IKEA’s international strategy in the following Figure 1. IKEA has expanded from a small, family-owned home furniture corporation into a global retailer within 385 stores in 48 countries, during its 72-year history.
Location is particularly important for all business. Poor location decisions are difficult and expensive to overcome. A distribution channel can include wholesalers, retailers, distributions and even the internet. One of coach’s strategies was its multichannel distribution model, which included indirect wholesale sales to third party retailers but focused primarily on direct to consumer sales. Coach operated 345 full price retail stores and143 factory outlets in North America, 169 stores in Japan and 66 stores in China along with online store, ecommerce website and internet mail catalogue sales.
Lack of understanding local customers’ shopping habit cultures. Using a suitable strategy to adapt and match the host nation’s culture is one of the most difficult challenges that many multinational enterprises have to overcome (Alphonse 2014). According to Harzing test based on Barlett & Ghosal’s foreign market entry theory (1999), while
Strategic Acquisition 2. Eastward Expansion 3. Snack Foods 4. Southward Expansion 5. Inventory Control