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Unformatted text preview: strategy which is to cap the margins on branded name merchandise at 14 percent so that its members can buy with low price. Costcos main competitors are BJs Wholesale Club and Sams Club. All three are similar companies with the same class of customers and very similar sort of products provided. Costco has the leading position among customers as the number one supplier of variable products and low prices. Costco's competitive advantage is centered upon its ability to buy in enormous bulk, consolidate, and sell in its stores. Sam's Club and BJ's Wholesale Club stores duplicate Costcos approach, with one significant difference the companys approach towards its work force. Costco's larger membership base also provides some advantage. Costcos maintains only marginal advantage over these two companies in terms of concept and pricing, but among the three they have conquered the U.S. market....
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This document was uploaded on 12/05/2010.
- Spring '09