Costco vs. Sam’s Club vs. Bj’s Wholesale Case Study

Section 3 SWOT Analysis Costco vs. Sams confederacy & BJs Wholesale Strengths 1. Costco sells top-quality merchandise at prices consistently be scurvy what opposite wholesalers or retailers charge 2. Substanti bothy lower operating and costs than around retailers because they purchase full truckloads of merchandise straight from manufacturers and display items on pallets or inexpensive shelving/kept extra inventory on high shelving directly on the sales floor rather than in central w atomic number 18houses 3.Comparatively low costs for store decor and fixtures as well as repel costs since they are open fewer hours than conventional retailers, and therefore look at fewer people to operate relative to the sales volume that a store generates 4. Costco caps the margins on brand-name merchandise at 14% and their private-label items at 15%, about 20% below comparable name-brand items Weaknesses 1. Memberships are more expensive ($50 vs. $35 at Sams and $45 at BJs) 2.Costco has f ewer stores in the United States and worldwide than Sams Club, making their name less known 3. Without revenues from membership fees, Costcos profits would be miniscule due to its strategy of capping the margins on branded goods 4. Criticized for going all out to please customers at the expense of charging prices that would increase profits for shareholders Opportunities 1. lend oneself aisle markers, express checkout lanes, self-checkout lanes, and low-cost video-based sales aids as BJs does 2.Differentiate products in price categories good, deluxe, and luxury (BJs method) 3. Begin evaluate manufacturers coupons (BJs method) 4. Stock a broader product diversity to appeal to larger clientele Threats 1. BJs Wholesale Club locations are clustered in order to benefit from greater name mention and maximize the efficiencies of management support, distribution, and marketing activities therefore, it is harder for Costco to market itself in areas where BJs locations are predominant (e specially New England, where it was started) 2.Extended store hours offered by Sams Club and BJs are hard to compete with 3. BJs uses one-day passes to introduce non-members to its ball club and in the spring/fall runs free trial membership promotions to back off new customer base takes away from Costcos 4. Detailed POS data enables BJs managers and buying staff to track changes in members buying conduct so they can target markets and keep customers loyal to their warehouse wholly