You are on page 1of 2

This is a Competitive Analysis chart comparing Costco, Sam's club and BJS wholesale club to

compare their strength and weakness. The five aspects being compared are Company Specific/
Business advantages, Target Customer, Product Specific, and Positioning between the firms.

We begin with Company Specific/ Business advantage, showing the number of workers
employed in each company and when and where the company was founded.
Then we look at each company's strengths and weaknesses. For
Costco
Strength
High-quality products with a significantly low price Process optimization to achieve maximum
profit and minimize cost
Well-known and well-liked - Costco Wholesale has stores in over 600 locations across the
United States and Canada. It has many strengths, but it’s most known for its private product
selection, exclusive membership, and positive treatment of its employees.
Low Prices: Costco’s low price strategy is a major strength of the retail giant. Costco adopts a
strategy of stocking high-quality items, which are sold in bulk-size at low-profit margins in
warehouses style stores.

Weakness
A sad selection. Although you have the option to buy many products at Costco, compared to
other stores, the selection is rather limited. The average amount of products circulating on the
floor is 4000. It sounds impressive until you learn that Walmart houses over 50,000 products.
Having such a small selection means any store can easily become a competitor to Costco.
Cater to smaller customer base: Due to its smaller product selection, Costco is unable to attract
a wider customer base, who want a bigger selection of products and in smaller quantities.

Sam's club
Strength
Brand Name: Walmart owns and operates Sam’s Club, which serves 40 million people and has
a strong brand identity.
Sales Volume: It has approximately 600 warehouse clubs and is the second-largest warehouse
club in the United States in terms of sales volume.
Social Media: Sam’s Club has a strong presence on social media, with a large number of
individuals engaged, which helps them draw customers from all over the world.
Financial Condition: Last year, Sam’s Club had a $64 billion annual revenue, and it has been
profitable for several years in a row, allowing it to invest in future operations.
Development of Workforce: Sam’s Club makes significant investments in employee training and
development, resulting in a trained and motivated team.

Weakness
Limited Presence: Sam’s Club has a strong presence in the United States but only a limited
global presence in China, Brazil, and Mexico.
Employee Turnover: Despite spending a lot of money on employee training and development,
there has been a high employee turnover compared to comparable companies.
Research and Development: The club has not spent wisely on research and development,
resulting in demand forecasting gaps and possibilities being missed.
Rented Assets: Sam’s Club operates mostly through rented stores, resulting in higher costs and
the majority of sales going to pay rent.

BJs
Strength
Growing consumer base with a high retention rate
Prices lower than competitors
The company is placing a very strong position in the market as because of producing the goods
and services al reasonable cost.
The different and unique products manufactured by the company differentiate themselves as
from the competitors in the market.
The BJ's Wholesale Company is enjoying a very strong phase of the customer's loyalty to the
brand as they are trying to seek the awareness of the customers.
The great advantage the company is taking from its name of the brand that is now very much
established.

Weakness
The annual membership fee is high
Products are supplied by third-party manufacturers
The non proficiency of work in the company decreases the rate of profitability can obvious
growth rate become declined or stagnant
The pays provided to the employees of the BI's Wholesale Company are very high that
increases the overall cost of the company.
The company is infolved in the selling of the older stock that lacks the interest of the customers
towards the brand.
The company has weak team of management that supervises and control the various issues of
the company as related to the reduction.

You might also like