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

Section 3 SWOT Analysis Costco vs. surface-to-air missiles Club & BJs sweeping Strengths 1. Costco sells top-quality merchandise at prices consistently below what other wholesalers or retailers charge 2. Substantially lower in operation(p) and costs than most retailers because they purchase full truckloads of merchandise directly from manufacturers and flourish items on pallets or inexpensive shelving/kept extra inventory on high shelving directly on the gross gross revenue floor rather than in central w arhouses 3.Comparatively low costs for store decor and fixtures as hale as labor costs since they are open fewer hours than constituted retailers, and therefore require 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 surface-to-air missiles and $45 at BJs) 2.Costco has fewer 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 mark goods 4. Criticized for going all out to please customers at the expense of charging prices that would extend profits for shareholders Opportunities 1. Implement 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 accepting manufacturers coupons (BJs method) 4. Stock a broader product assortment to appeal to larger clientele Threats 1. BJs Wholesale Club locations are clustered in order to benefit from great name recognition 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 (especially 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 club and in the spring/fall runs free essay membership promotions to draw new customer base takes away from Costcos 4. Detailed POS data enables BJs managers and buying staff to track changes in members buying behavior so they can target markets and keep customers trusty to their warehouse only