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This strategy has helped the company attract customers’ attention. As we know people are looking for a good product and low price always. The way that these stores do in order to reduce its cost are as the following; Costco, Sam’s Club and BJ’s Wholesale can get the lower operating costs than another retailer stores because they buy full truckloads of merchandise directly from producers, they showed item on inexpensive shelving, they tried to keep extra inventory in high shelving, the most important thing is that they had very low labor cost if compared with the other competitors. The reason is that the warehouse not opens long hours than the other retailer store does so that there are a few numbers of people working there). Moreover, Costco, Sam’s Club and BJ’s wholesale do not focus much on IMC ( Integrate marketing channel ) In this case, it talks about investing in advertising
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Moreover, the three of them are great customer for supplier because when they buy the product, they buy a lot for putting in the shelf and for inventorying. Due to this, the three wholesalers have ability to negotiate the price also.
Financial analysis According to exhibit 2, Costco has a very good number of total assets. There is slowly decrease in net income from year 2008 to 2009. Next, observation from exhibit 6 explains that Sam’s has a favorable profit margin, and increasing in asset in each year. Then, WJ’s wholesale club in exhibit 7 explains that there is an increasing in total revenue and has favorable net income. However, there is increasing in asset. Lastly, Costco’s revenue increase year by year from 2005 to 2009 (other international operation) so, it indicates that Costco’s expansion outside NA is going well.
Five years predication and …show more content…
Maybe they can have Costco Facebook or Costco blog in order to get the new target group such as teenager group. Next, it is possible that Costco can take over BJ’s or do joint venture in order to reduce a major competitor and to become stronger market leader. The recommendations for Sam’s club. According to Sam’s club strategy, they prefer to buy the product from China and Mexico in order to reduce production cost. I think they should fine the chap supplier but in America so that Sam can cut the processing of delivery that suppose to save time for them. Or Sam club can copy some strategy from Costco to help them run the business. Moreover, they should develop treasure – hunt plan. For example, the product must be to be upscale and better quality. The recommendations for BJ’s club. I have the same recommend with Costco that they need to build connection with customers. As same as Costco, BJ’s do not give important much to IMC plan and business expansion plan. Thus, BJ’s should expand its branch around USA in order to get economies of scale and increase brand awareness. Due to BJ’s sale is lower than the sale of Costco and Sam’s club, BJ’s should improve sale in each store or create specific strategy that match with each store to boost up the revenue and improve
Moreover, the three of them are great customer for supplier because when they buy the product, they buy a lot for putting in the shelf and for inventorying. Due to this, the three wholesalers have ability to negotiate the price also.
Financial analysis According to exhibit 2, Costco has a very good number of total assets. There is slowly decrease in net income from year 2008 to 2009. Next, observation from exhibit 6 explains that Sam’s has a favorable profit margin, and increasing in asset in each year. Then, WJ’s wholesale club in exhibit 7 explains that there is an increasing in total revenue and has favorable net income. However, there is increasing in asset. Lastly, Costco’s revenue increase year by year from 2005 to 2009 (other international operation) so, it indicates that Costco’s expansion outside NA is going well.
Five years predication and …show more content…
Maybe they can have Costco Facebook or Costco blog in order to get the new target group such as teenager group. Next, it is possible that Costco can take over BJ’s or do joint venture in order to reduce a major competitor and to become stronger market leader. The recommendations for Sam’s club. According to Sam’s club strategy, they prefer to buy the product from China and Mexico in order to reduce production cost. I think they should fine the chap supplier but in America so that Sam can cut the processing of delivery that suppose to save time for them. Or Sam club can copy some strategy from Costco to help them run the business. Moreover, they should develop treasure – hunt plan. For example, the product must be to be upscale and better quality. The recommendations for BJ’s club. I have the same recommend with Costco that they need to build connection with customers. As same as Costco, BJ’s do not give important much to IMC plan and business expansion plan. Thus, BJ’s should expand its branch around USA in order to get economies of scale and increase brand awareness. Due to BJ’s sale is lower than the sale of Costco and Sam’s club, BJ’s should improve sale in each store or create specific strategy that match with each store to boost up the revenue and improve