The year is 2013 and Trader Joe's CEO has hired you to advise on the competitive landscape in the the supermarket industry. First, he has asked you to conduct a financial ratio analysis of key competitors (identified in case exhibit 2), and use this information to identify and explain these four competitors' strategies. Second, he would like a recommendation on what TJ should do to continue to grow revenue and profit while maintaining their current source of competitive advantage. TJs is considering expanding into new geographic markets or doubling down (increasing presence in existing markets), and is also willing to consider other suggestions.

Exhibit 2 Comparative 2011 Financial Performance of Selected Retailers (in $000s) Whole Foods Kroger Safeway Supervalu Revenue 10,107,787 $ 90,374,000 43,630,200 36,100,000 Cost of Goods Sold S 6,571,238 S 71,494,000 31,836,500 $ 28,081,000 Gross Profit 3,536,549 S 18,880,000 S 11,793,700 S 8,019,000 SG&A and Other Expenses 2,988,929 S 17,602,000 10,659,100 $ 8,538,000 Operating Income 547,620 S 1,278,000 $ 1, 134,600 $ (519,000) Net Income 342,612 S 602,000 S 516,700 S (1,040,000) Total Assets 4,292,075 $ 23,476,000 15,073,600 12,053,000 Total Liabilities 1,300, 770 S 19,510,000 11,384,500 12,032,000 Total Equity 2,991,305 S 3,966,000 S 3,689,100 S 21,000 Source: Annual Reports of each firm.Case memo rubric Criteria Addresses all questions Uses appropriate factual support Uses quantitative or qualitative data from the case that helps provide evidence / support for assertions or recomendations Uses appropriate theoretical support Applies class theories, frameworks, and terminology Makes recommendations ls clear, compelling, and logical