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Trader Joes delivers a specialized range of products to its customers. It is headquartered in California and it has espoused a competitive strategy to maintain an edge over its customers. During the past few years, the continuous increase in its revenues is credited to the number of factors. However, its easy refund policy and the limited selection of products have contributed towards its success to a greater extent. (Trader Joe's, 2013)
Easy Refund Policy
Trader Joe's facilitates its customers by providing them with the occasion to refund their products or other merchandises. The return policy is beneficial to patrons who are unclear whether bought merchandise will fit their requirements. This, on the other hand, provides benefit to Trader Joe's if it has a gain over customers in retrieving returned merchandise, or if it can vend other products when customers return unacceptable merchandises. Moreover, it is a well-established fact that every customer plans to buy the representative merchandise. Proceeding to purchase, customers are indeterminate about the merchandise's fit with their needs.
Furthermore, the return strategies adopted by its competitors vary ominously; some offer very substantial return policies, whereas others levy many limitations on returns. It has been observed that the Trader Joe's has executed such policy due to the number of reasons including the certainty that its merchandises' advantages cannot be used up in a short epoch of spell as well as its product line delivers prospects for cross selling; and it can get a high recoup value for refunded products. Moreover, the return policies which let customers to definitely return merchandises for a refund are appraised by the customers and tend to entice them in a positive way. (Berman, 2010)
Limited Selection of Products
The Trader Joe's offers a limited selection of products to their patrons. These products are of excellent quality and specialized in nature. On the other hand, its major competitors deliver a wide range of merchandises to their patrons. This makes them to compromise on their quality and as well as to face difficulty in reducing their costs. The mass production of the products often results in the wastage of the products due to the errors in the demand forecasting. However, Trader Joe is successful in maintaining its position in the market due to its effective strategies.( Berman,2010) Furthermore, the real competitive advantage infers corporations are competent to content purchaser needs more successfully than their competitors. It is attained if and when real worth is added for clienteles. A corporation must add value if it is to be efficacious. Moreover, the retailers or the grocery store in the existing business climate require to come to be more malleable and willing to familiarize to customers' altering needs and penchants in order to gratify the marketplace. The specialized standing provides clienteles with evidence that they will be engaging with a perceptive, well-informed business who is proficient in the defined merchandise or industry area, and capable to work with them to ripen and enjoy the specialized products.
How important is HR for this success and why?
The Human Resource plays an important role in the success of any corporation and forms the basis for maintaining an edge over the participants. Almost every business has the access to the same technology or the products, but it is the Human Resource that makes the difference. In case of Trader Joe's, their success is directly related to their proficient and capable Human Resources. For Instance, the excellent customer service is only possible through the well trained and highly capable employees. The Trader Joe provides training to their employees on the regular basis and delivers systematic feedback to them about their current performance. Moreover, they have also developed an attractive incentive plan in order to motivate them and to increase their productivity. The success of any business is highly dependent upon the level of loyalty the employees has with their organization. The Trader Joe has also worked on it and provides intrinsic as well as the extrinsic awards to their personnel in order to increase their job satisfaction so that they may contribute more towards the achievement of the organizational goals. Furthermore, the Trader Joe also ensures that there exists the external and internal equity with regard to the pay or the wages of the employees. It is the perception of the personnel that they are being treated impartially and objectively by the employer and they don't tend to shift to their competitors due to inequity issues. All such types of incentives as well as other benefits for the employees assist the Trader Joe's in maintaining a competitive position in the Industry as well as building a positive image in front of the public which is the foundation of its success.
What would you recommend for strategic HRM?
The Strategic Human Resource Management requires the alignment of the departmental goals with the overall corporate goals in order to be successful. The Trader Joe can succeed in the formation of the HRM if it involves HR in its decision making process. The Human Resource should not only act as a department but they ought to be involved in the goal setting of the organization. Moreover, they should take part in the strategy formulation as well as in the strategy execution process. They should act as the employee champion and ought to be responsible for carrying the employee related issues to the senior management. They act as the business partner role, innovator role as well as the strategist role.( Baker,1999) The business partner role encompasses that they must be the part of the top management and plays their part in the formulation of the strategic goals for the organizations. Moreover, the innovator role requires that they must invest innovatively in the practices of the organization and enable it to gain a competitive advantage over its competitors. The strategist role for the Strategic HRM encompasses that the HR ought to prepare the strategic plan and oversee their execution.
Therefore, the central aim of Strategic HRM is to create the strategic aptitude by certifying that the corporation has the trained, dedicated and well-motivated personnel it requires to attain persistent competitive advantage. Its purpose is to deliver a sense of course in an often tempestuous setting so that the business requirements of the corporation and the individual and collective requirements of its personnel can be encountered by the development and execution of comprehensible and practical HR strategies and programmes. It also requires the strategic integration which refers to the correspondence between business and human resource approach so that the latter assists the achievement of the former and certainly, supports to describe it. (Hendry& Pettigrew, 1986).