Case 4: Competition Among the North American Warehouse Clubs: Costco Wholesale Versus Sam’s Club Versus Bj’s Wholesale
Southern New Hampshire University
Competition among the North American Warehouse Clubs: Costco Wholesale versus Sam’s club versus BJ’s Wholesale
Case Summary According to the case, in the year 2010, the nearly $ 125 billion discount warehouse and wholesale club segment of the North American retailing industry concluded of the tree major competitors, which are Costco wholesale, Sam’s Club (both of them belongs to Walmart) and BJ’s Wholesale Club. The three warehouse clubs operated no- frills, self service big box facilities where customers could choose from relatively narrow …show more content…
Industry rivalry There is a wild competition among three of them Costco, Sam’s Club and BJ’s wholesale. As we know from the book, active rivals may compete one another to differentiate their products by providing better performance features or higher quality customer service and so on. In this case, the competitors strive to get the better or higher product quality and sell them at lowest prices in the best location possible. Also, the problem occurs from the customer, which is low switching cost. The customers are not required to spend a lot if they want to switch the brand. Thus, the company needs to find the best way to keep their customers.
Threat of substitute product and servicer This is a very serious problem that brings