BJ's Wholesale Club

Competitive Analysis SWOT analysis of Costco Wholesale Co. Costco Wholesale Corporation is the world’s largest membership warehouse club chain based on sales volume. Sales for the fiscal year ending September 30, 2008 were almost $71 billion (www.online.wsj.com). Costco was founded in Kirkland, Washington by James Sinegal and Jeffrey Brotman. Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. Costco is headquartered in Issaquah, Washington (www.hoovers.com)

competition between the wholesale club industry is pretty strong but is mostly dominated by the three main competitors which are: Costco, Sam’s club and BJ’s Wholesale club. These three wholesale clubs for the most part dominate the industry and take away customers from other retail stores because they can offer much lower prices, brand name items and a wide variety of items to purchase from them. When it comes to shares of warehouse sales, Costco had roughly 56 percent of sales, Sam’s club had 36 percent

Background and Industry COSTCO Wholesale Corporation is a company that started its operations back in 1983, in Seattle, Washington. It is internationally recognized and deals with goods that are sold at considerably discounted rates. Its customers are purely members of the Costco Wholesale. COSTCO’s Wholesale Corporation major competitor is BJ’s Wholesale Club, another membership warehouse. Financial Position COSTCO Wholesale Corporation, BJ’s Wholesale Club and Sam’s Club are the top players in the

1, 5, and 6, is Costco’s financial performance superior to that at Sam’s Club and BJ’s Wholesale? Costco is turning in much higher numbers for total revenue than BJ’s and higher sales than Sam’s. Costco holds 57 percent of the market share while BJ’s has 8 and Sam’s has 35 percent. 8. How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sam’s Club? Over BJ’s Wholesale? If so, what is the nature of its competitive advantage? Does Costco have

Case 4: Competition among the North American Warehouse Clubs: Costco Wholesale vs. Sam’s Clubs vs. BJ’s Wholesale 1. Competition in the North American wholesale club industry is mildly intense. The players in the wholesale club industry try to achieve lower prices by reducing throughout the store by using pallets or inexpensive shelving to display items. They also incur very low costs for store decoration and light fixtures and a relatively low labor cost because of the use of fewer works and

perspective Costco is performing extremely well. They are making record high profits as stated in 2012. They are also acquiring new customers continuously from households and new businesses. Their strategy is to sell you products in bulk quantity and wholesale. Another part of it consists of purchasing a limited selection of quality merchandise with efficient distribution and a wide range of product categories and rapid inventory turnover. Other strategic successes consist of massive amounts of internet

Costco Wholesale in 2008 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? Costco is a membership warehouse business. It allows corporations and consumers the opportunity to buy memberships to the warehouse club. The membership allows members to buy a range of selective items, many times in bulk. These items consist of H&B, food, household items, electronics and many other item categories. The items offered through the warehouse club are in

My business is Sam’s Club and there's a lot that makes sam’s club special. Sam’s club is a wholesale,it is a retail warehouse club. It sells things that are cheaper then buying them somewhere else. A lot of the times they are sold in bulk. It also requires a membership to shop their. It was founded by Sam Walton in 1983. Theses are some things that make sam’s club special. Sam’s club is in competition with Costco Wholesales and BJ’s Wholesale club. Sam’s club has 660 stores in the U.S when Costco

Competition Among the North American Warehouse Clubs: Costco Wholesale vs. Sam’s Club vs. BJ’s Wholesale Provide an overview of the company and/or industry and add any pertinent information relevant to the case (5 points) The overall competitive forces working on the Warehouse Club industry are fairly average. The highest pressure in the industry comes from industry rivalry and the availability of substitutes. Buyer bargaining power, supplier bargaining power, and threat of entry are

1. Costco’s business model is to generate high-volume sales and rapid inventory turnover by offering low prices on a limited set selection of brands and a few selected privately labeled products. This model does not turn a profit on its own with the company operating slightly below its break-even cost. However, to make up for this Costco charges a membership fee and this is a simple way of padding their profit but also enabling them to provide a customer experience that emphasizes value. It’s a very