Costco Vs Sam

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.

The strategic objective of Costco is based on the concept of offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories while producing high sales volumes and rapid inventory turnover. This rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self service warehouse facilities, enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets. (1)

Environmental scanning involves an organization to look at any trend, opportunity or threat that could create issues for their company. Once any of these issues are identified, the organization should consider new strategies that react to these external factors. Issues should be examined that involve not only direct customers and suppliers, but also competitors, any changes in regulations and possible political involvement. External factors will be constantly changing so environmental scanning should occur frequently and regularly to ensure the current issues have been captured. Research and data analysis can help drive decisions regarding overall marketing changes that might be necessary.

Being one of the biggest club in US, still Sam’s Club is facing competition from another US based club known as Costco. Costco is offering same lowest possible prices and excellent supply chain process. Sam’s Club’s biggest problem is the notable differentiators in low profit margins and offering the best deals on products. The have a

In this broadcast I was amazed by how Costco was formed and the little secret things that Costco using to encourage people to buy more. Surprisingly that the employee from Price Club left his job, and open his own company, Costco. I first thought that Amazon would sell more stuff than Costco because their social network system which offers free deliver, good deal, more convenience, and various items are offered. However, Costco alone sells more stuffs than Amazon. I found many interesting about Costco. Costco is a giant store with a tiny selection, for example; there is only three options for plastic zip log. This is a key for Costco that they don’t offer many options due to the fact that they don’t want to spend more money on labor part to

Ultimately, Jim Sinegal should be applauded rather than condemned for his management strategies. Costco’s future looks bright because his plans look into the long run. When confronted with annual sales figures, he insists, “This is good business.”[12] I would say it’s excellent business. Costco’s shareholders will be well taken care of by his human capital investment. Watch out ‘Wholesale Land’—with its voluminous ceilings and three packs of 64 ounce jars of mayonnaise – Costco is here.

The business model of Costco’s is simply to generate high sales volumes and rapid inventory turnover by offering its members low prices on a limited selection of nationally branded and selected private-labeled products in a wide range of merchandise categories. The company’s business model is appealing in today’s market because of the economic downturn we are experiencing. Everyday American’s are looking to make their dollar stretch and Costco’s provide them with a great way to buy in bulk and stretch the consumer dollar to the max!

Upon completion of the in depth analysis of Costco and the industry in which it operates, two major issues were identified. These issues relate to the long term sustainable growth of Costco and needs to be addressed by management.

Next, the threat of new entrants which I believe is weak. Since Costco is a large warehouse store they have aggressive pricing that is difficult for smaller retailers to duplicate. Costco has their private Kirkland brand that makes entering this market more difficult and hard to duplicate unless new entrants have sufficient capital that is needed. As well marketing and advertising is very costly to gain new customers and keep current customers. Another factor making the threat of entry weak is the unappealing market growth in the industry which is small and as well as the

By watching 2012 CNBC special “The Costco Craze” video, I realize the most essential aspects of running a successful business is not all about how significant profits you make. In the other hand, it all about how much time you put into the business to satisfy customer desires, which thrusts Costco to compete with other companies around the world.

To stay tuned to the recent situation in order not to miss perspective opportunities, an organization should go on with continuous scanning of its environment. According to Jobber, environmental scanning is “the process of monitoring and analyzing the marketing environment of a company” (Jobber, 2010, p.93). Aguilar states (Aguilar, 1967, cited in Costa, 1995, pp.4-5) that environmental scanning serves the purpose of gathering information about the facts and events happening around the company in order to let the management lead the organization in the right direction. Most of the authors agree on the same main function of environmental scanning.

If you have noticed, most of the time we would go for a quick errand to buy necessities we would usually go to Wal-Mart, Sam 's Club, King Soopers, Safeway, Walgreens, or Costco. Of course, there are other retail markets out there, but we 're going to focus on the "two leading American retailers, posting more revenue than any of their rivals" (Bowman): Wal-Mart and Costco. For many years, Wal-mart has been growing instantaneously and is the number one retailer in the world for many years. Although, when it comes to employee benefits, Costco 's would be considered a better choice for employees. Costco may be treating employees better when it comes to

The general environment is composed of segments that are external to the firm. Although the degree of impact varies, these environmental segments affect all industries and firms competing in them. The

The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).

To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental