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I loved this post!! It was very interesting to learn how a creative company like Pixar also has to think about linking their operating model to their business strategy. I wonder how their rules and processes change once it’s time to create the movie (vs come up with the idea) – does the same creative, high-risk, high-reward environment prevail during movie production, when attention to detail is paramount?
Great article Steve! I have always admired Trader Joe’s business model – not only for what you described above but also because (willingly or unwillingly) they seem to have a focus on healthier and less processed foods. I assume that in the future years they will begin to face stronger competition and wonder to what extent they will strive to keep their higher margins through vertical integration – and how, if at all, they can leverage their current operating model to do that.
Thanks for your comment! They have to comply with the $3 per meal that the meal refund programs mandate; so they’re explicitly targeting lower income school (although they do have products catered for higher income – which subsidize school meals)