Costco And Sam 's Club

1256 WordsMar 8, 20176 Pages
As previously mentioned, Costco does have some direct competition within the industry from companies such as, another big box retailer Sam’s Club, as well as, Target and Walmart. Comparing for instance, Costco and Sam’s Club, both retailers offer basically low prices, mass quantities, miscellaneous items for the home, and require individuals to pay in order to shop at the establishment (Quirk, 2016). There is a minimal difference in the amount individuals pay to be members of these establishments; Costco’s annual fee is $55 and Sam’s Club is $45 (Quirk, 2016). Although both retailers have various similarities there are a couple of differences that stand out. For instance, Costco extends opportunities for home mortgages, security…show more content…
Although each business establishment may provide low prices, it is not strictly about the cost that is valued as a customer. For instance, one of the values is the ability to purchase product in mass quantities for the lower price. Buying in mass quantities not only keeps the pantry stocked, but it also decreases the number of trips to the store which saves precious time for individuals that are always on the go. Another value that is viewed as important, is the value that a company places on the employees and customers. It is of the opinion, that companies should consider what keeps the establishment in business in the first place and that is both the employees and customers. Costco demonstrates this by above adequate compensation for employees and the empowerment given to managers, in addition to catering to the wants and needs of the local market and quality customer service. Ironically, some of those same values that one views as important when choosing a retail establishment is what Costco values as core competencies within their competitive strategy. Costco’s continued focus on the employees seems to be at the heart of their core competencies and although it may bring in less profit and less to shareholders, there are not any signs that seem to indicate change. As Makroon elaborates, ““Jim” the CEO and cofounder of Costco indicated that the employees were the company’s main core competency and he has set policy to enforce it…That

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