73310992-North-American-Warehouse-Clubs-Costco-Wholesale-Versus-Sams-and-BJs

73310992-North-American-Warehouse-Clubs-Costco-Wholesale-Versus-Sams-and-BJs

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Case 4 Competition among North American Warehouse Clubs 1. What is competition in the North American wholesale club industry? In 2010, the nearly $125 billion discount warehouse and wholesale club industry consisted of three principal competitors: Costco, Sam’s and BJ’s. Which of the five competitive forces is strongest and why? From looking all five the threat of new entry is the strongest because of the extreme pricing and limited access to the distribution channels. 2. Do all three warehouse club rivals-Costco, Sam’s and BJ’s wholesale – have highly similar strategies? No; What differences in their strategies are apparent? Costco is providing items in bulk and at low prices; consumers gravitate toward discounting hoping to get the most out of their money. Sam’s is decreasing product costs by buying from low cost labor countries like China and Mexico. BJ’s is focusing on retail shoppers offering more grocery items and smaller quantities of packaged goods. Does one rival have a better strategy than the others? I think Costco has the best strategy due to the cost efficient distribution through the use of the cross dock distribution. Cross docking allows the club has the ability to minimize inventory, improve product quality and increase responsiveness to any changes in the market conditions. Does one rival have a somewhat weaker strategy than the other
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

73310992-North-American-Warehouse-Clubs-Costco-Wholesale-Versus-Sams-and-BJs

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online