Case 4: Competition Among the North American Warehouse Clubs: Costco Wholesale Versus Sam’s Club Versus Bj’s Wholesale

1758 Words8 Pages
Case 4: Competition among the North American Warehouse Clubs: Costco Wholesale versus Sam’s club versus BJ’s Wholesale Jriya Palanachsuk Southern New Hampshire University July8, 2012 Competition among the North American Warehouse Clubs: Costco Wholesale versus Sam’s club versus BJ’s Wholesale Case Summary According to the case, in the year 2010, the nearly $ 125 billion discount warehouse and wholesale club segment of the North American retailing industry concluded of the tree major competitors, which are Costco wholesale, Sam’s Club (both of them belongs to Walmart) and BJ’s Wholesale Club. The three warehouse clubs operated no- frills, self service big box facilities where customers could choose from relatively narrow…show more content…
They may choose to shop at another store, which is the best for them in term of price, product, place and promotion. And the same here, the customers have no switching cost. Threat of new entrance This problem is not too serious because new comers required a lot of budget to compete with the big three-warehouse club. Moreover, the three wholesales obtain the economies of scales, which are the strongest competitive advantage that the small competitor hard to imitate while extreme pricing in the industry also is, the barrier for new comers. Lastly, the three wholesaler are well known company, and they have been operating in this industry for long time so that they know a lot o f strategy and tactic to obtain the market share and market growth in this business. Customer bargaining power & Bargaining power of supplier. These two factor are relatively weak if compare with another three competitive force. The companies face price sensitive from customers. However, individual customer’s purchasing cannot create a serious problem to the company because they prefer to purchase in small amount of product. It means that each purchasing of individual customer cannot effects much on sale revenue. There are many suppliers in this industry so that the three warehouses can choose the other suppliers if they have

More about Case 4: Competition Among the North American Warehouse Clubs: Costco Wholesale Versus Sam’s Club Versus Bj’s Wholesale

Open Document