Wholesale Industry

Wholesale Industry - Wholesale Industry When first looking...

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Wholesale Industry When first looking at an industry one must look at several factors, the direct competitors, substitute rivals, suppliers, buyers, customers, and anything else which can have a direct or indirect impact on the featured company. All of these factors, or forces can be summed up and called an industry. In the cost Costco case one must examine the wholesale industry, and also the indirect industry. Throughout the rest of this section we will primarily be focusing on the wholesale industry, and occasionally touch on the general retail industry as it relates to Costco. The Major Competitors: 1) BJ's Wholesale 2) SAMS CLUB 3) Costco 4) Bi-Market These four major competitors are the four prime companies jockeying for market share in the wholesale industry. These top four companies own 90% of the sales, and 85% of the 3,000 stores in the wholesale industry (Thompson C-5). With just these four companies owning that much of the industry it makes it very top heavy, and extremely difficult for new entrants to launch start up business or joint ventures in this industry. General Description of Companies in this industry: Most all of the companies in the wholesale industry rely on competence-based theories to achieve revenue. They rely on very efficient values chain systems, and superior supplier relations to help them achieve maximum efficiency, and the lowest cost possible. The environment upon which they compete in is moderately dynamic, and because of their vast product diversification tends to be relatively predictable. Most all of these firms got there start in the mid 1970s but did not really gain momentum until the late 1980s early 1990 (Package Facts). Even though this industry is relatively young, it is
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This note was uploaded on 04/20/2008 for the course GBA 490 taught by Professor Strickland during the Spring '08 term at Alabama.

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Wholesale Industry - Wholesale Industry When first looking...

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