Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Does bj's accept competitor coupons

17/11/2021 Client: muhammad11 Deadline: 2 Day

An example:

Prepare a five forces analysis addressing what is the competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Which of the three rivals—Costco, Sam’s, or BJ’s Wholesale—has the best strategy? Why? Which of the three rivals has been the best performer? Use the information in Figures 3.3, 3.4, 3.5, 3.6, 3.7, and 3.8 (and the related chapter discussions on pp. 54-71) to do a complete five-forces analysis of competition in the North American wholesale club industry.

The wholesale club industry has evolved into a common oligopoly just as other major industries have. The “big three” of this industry are CostCo, Sam’s Club, and BJ’s. A five forces analysis will be examined in regards to the wholesale club industry.

By examining force one, barriers to entry; the three companies are at an advantage because of the difficulty of new firms entering the industry. They accomplish economies of scale and scope due to the size and volume of their sales by buying and selling more goods on a larger scale with lower costs. It would take a considerable amount of time for a new entrant to achieve the benefits of economies of scale. The capital requirements are large due to the construction of buildings and acquisition of land and licenses. Finally, only companies with an established distribution network would have a fair chance of entering the industry. There would be few companies with the ability to enter this industry. For example, Target Corp. could navigate towards converting some of their current stores into wholesale clubs. They would also have an easier trasition because they already have distribution centers around the country. In fact, Target made an attempt to sell certain items in bulk in some of their stores to “test the market” of possible entry into the market (White, 2010).

Force two, the threat of substitutes, is not a factor because the service they offer is not offered by other outside competitors. Force three, the bargaining power of buyers, is the strongest force working in the favor of the industry. This is so because buyers cannot negotiate the price. The main reason customers come to wholesale clubs is they are attracted by the already low prices and value of buying in bulk. This is not an industry like the automobile industry where it would seem every purchase is a negotiation and most buyers go into purchase situation with a price haggling mind-set. The prices are set as they are and the buyers accept the prices.

Force four, the bargaining power of suppliers could come into play if a more favorable opportunity presents itself in the general retail industry. Wholesale clubs offer only a percentage of the products (ranging from 4000-8000 SKUs) that a general retailer does (100,000+ SKUs). For example, if Proctor & Gamble (P&G), the makers of Crest toothpaste, decides that it is not beneficial to their company to sell Crest wholesale, they could apply pressure to the clubs by pulling their product. A key strategy of CostCo is aimed squarely at selling top-quality merchandise at prices consistently below what other wholesalers or retailers charge (Thompson, 2010). To not carry a popular product such as Crest could cause sales to decline especially if numerous suppliers apply the same pressure. The clubs would lose credibility of carrying top-quality merchandise.

The fifth and final force, rivalry among existing players, is not a major factor. The analysis of the case shows that sales have remained steady at all three across the board. CostCo net sales for 2009, were 71 billion, roughly $1 billion lower than 2008. Sam’s nets sales were $46 billion, off only 0.7% from the previous year. BJ’s actually increased net sales around $1 billion each of the past two years. Contributing factors to the success of each is that each offers a niche market within a niche market. Simply put, each club offers subtle yet distinctly impactful differences than the other two. CostCo, the runaway leader presently, offers the “treasure hunt” deals where extreme bargains are offered for short, unannounced periods of time. This creates buzz amongst customers by enticing them to return on a consistent basis to explore what “treasures” are available. BJ’s sets itself apart by being the only club among the three to accept manufacturer’s coupons. They also are the only club to accept all four major credit cards, MasterCard, Visa, Discover, and American Express, at all locations. They also offer a broader assortment of items as compared to Sam’s and CostCo (approximately 7,000 SKUs).

The analysis shows that CostCo is the runaway leader of the industry. Annual net sales are nearly double of the nearest competitor, Sam’s Club. It would appear that they also currently have the best strategy. The no frills, low margin markup strategy has been sustainable and grown the company over the past 5 years. Not only have they added warehouse locations, but since 2000, they have increased membership by 1.5 million just in business members. They also have pay far better wages and predominately promote from within. This helps develop and maintain a strong, knowledgeable, and loyal workforce

Do all three warehouse club rivals—Costco, Sam’s, and BJ’s Wholesale—have highly similar strategies? What differences in their strategies are apparent? Does one rival have a better strategy than the others? If so, why? Does one rival have a somewhat weaker strategy than the other two? If so, why?

The overall plan of all three wholesalers is the same. Sell items in bulk convincing the consumer that they are ultimately receiving a bigger bargain even if it means enduring higher up-front costs, while at the same time maintaining a separate revenue stream through renewed and new annual membership fees. Aside from that, the analysis shows that they operate distinct strategies. CostCo focuses on growing the membership base to utilize well-strategized merchandising concepts in enticing members to shop on impulse. The presentation is meant to suggest, accurately in many cases, that if you don't jump at the purchase today, you're not likely to get another chance. The flea-market aspect of CostCo, "the treasure-hunt atmosphere for wow items", has an unmistakable touch of theater (Gertner, 2003). CostCo, along with Sam’s Club, have established beneficial relations with their suppliers to procure the lowest possible costs of merchandise. The leverage these firms hold over their suppliers is immense. Suppliers must cooperate and/or comply with each of the firm’s requirements simply because having their products on the shelves in a CostCo or Sam’s is of great benefit to the supplier. CostCo has also expressed an advantage by catering not only to consumers looking for bargains on everyday average items, rolling out a marketing plan to lure high income shoppers with luxury item merchandise like jewelry and wine. Now value can apply to anything CostCo decides to carry: wine, chandeliers, diamonds, or even fine furniture. It's no longer the case that the sale and the splurge are separate ideas. We can buy into the lush life and the not-so-lush life at the same time, and in the same place (Gertner, 2003).

Some analysts have believed for several years that BJ’s outperforms the other two clubs, Sam's and Costco, even though both dwarf it in sales more than eight times over. Sales grew 13% to $2.93 billion from the year ended Jan. 31, 1997, from $1.8 billion four years earlier. One strategy that sets BJ’s apart from the other two is that they accept manufacturer’s coupons whereas the other two do not (Halverson, 1997). BJ’s also caters to ethnic communities in urban and suburban regions. BJ’s micromarkets food, carrying Kosher foods in markets with a large Jewish population and Italian ethnic foods in markets where many Italian Americans live and shop. Neither Sam's nor Costco offers such ethnic foods variations (Halverson, 1997). If anything stands out as a weak strategy, it would appear to be Sam’s Club, as they look ride the coattails and carried by the low-cost reputation of Walmart.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Assignment Solver
Innovative Writer
Professor Smith
Smart Accountants
Instant Homework Helper
Coursework Assignment Help
Writer Writer Name Offer Chat
Assignment Solver

ONLINE

Assignment Solver

After reading your project details, I feel myself as the best option for you to fulfill this project with 100 percent perfection.

$17 Chat With Writer
Innovative Writer

ONLINE

Innovative Writer

I will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points.

$25 Chat With Writer
Professor Smith

ONLINE

Professor Smith

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$35 Chat With Writer
Smart Accountants

ONLINE

Smart Accountants

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$20 Chat With Writer
Instant Homework Helper

ONLINE

Instant Homework Helper

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$47 Chat With Writer
Coursework Assignment Help

ONLINE

Coursework Assignment Help

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$25 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Difference of commercial bank and investment bank - Potassium chromate indicator colour change - Descriptive statistics and data visualization - Discussion -9 - What sound does ë make in english - Clearing tables in restaurant - A firm has a total debt ratio of .47. this means the firm has 47 cents in debt for every: - Dr peter silbert subiaco wa 6008 - Written assignment 2: Work life balance practices_case study - Fern fort university swot analysis template - Order # 9534 - Comparative financial statements for weaver company follow: - ZAP Lab Assignment - Helena the actions of lysander to being a cruel joke - Discussion forum on chapter readings - Data is sent through the network in bundles called - The par value of common stock represents - MBA 560 - ESSAY ASSIGNMENT - I have read and acknowledge example - A landscaper has 125 tiles - CHCCCS025 - Support relationships with carers and families - Saunders an imprint of elsevier inc - Mendelow power interest matrix - Industry open systems approach to social responsibility - What is a diagnostic essay - Definition of special education by kirk and gallagher - Network diagram critical path questions - Bill nye rock cycle worksheet - 1 mile run test - Assume the salaries of elementary school teachers - Jekyll quotes and analysis - Proactive vs clinique 3 step - The management of shatner manufacturing company - Collective Bargaining: Unit VIII Assessment - Constructing race creating white privilege - Creating Company E-mail/WIFI/Internet Use Policies - Code examples in c c++ for deadlock detection - Business of Sport - Inferential statistics project - Severn trent sewer map - Peregrine cpc exam - Lakeside boatworks is planning to manufacture - Credit for iphone upgrade program - Southampton voluntary services southampton - Injustice in montana 1948 - Two-fold serial dilutions concentrations - Enthalpy change of zinc and copper sulphate - Flo bjelke petersen scones - Appealing to Audiences - Carly fraser eye color change - Sequential topic chapters from the course textbook are assigned readings. Students are to prepare a four to five page outline of each week’s chapter, paraphrasing it using standard 12 point font. - One acre fund case study - Describe measurement of calorific value of food - Dichotomous key to the animal kingdom answers - Studio arts evaluation example - Manchester medical school curriculum - Thesis statement for vaccine research paper - How to do data interpretation fast - Disadvantages of zoos essay - Interior designer fee proposal - Nursing Research Methods - How to use a bunsen burner - Consumer behavior case study answers - Solution mechanics of materials rc hibbeler - Hobbs v petersham transport - Strategic capabilities of starbucks - Casio fx-100au plus simultaneous equations - What is the primary purpose of the joint commission - Managerial Accounting - Business ethics shaw 9th edition - Magic witchcraft and religion pdf - Www usana com autoship - Discussion 09/28 - The damnation of a canyon is unconvincing - The challenge of multi-core processors - Use two references, not from the Bible. 250 words. - Andrew esherick cause of death - Biology - Who called atticus a negro lover - A clean well lighted place thesis - Goodwill arising in a business combination is classified as - Feature article example year 12 - STANGER clinic/pills)[[#@#]]( 0835179056 ([email protected]#![]!#\SAFE ABORTION CLINIC//PILLS IN MANDENI DURBAN soweto midrand qwaqwa - Lab Report: Microbial Growth - Effects of Temperature - Colter company prepares monthly cash budgets - Discuss the pros and cons of using a large cloud provider instead of a smaller provider. - Foolproof breathing without air answers - Hr diagram lab answers - Metric hi lo screws - Argumentative essay education should be free for everyone - Synthesis Paper - Sampling - Operations management chapter 12 answers - Apta it cctv rp 001 11 - Analytical procedures are required as a part of the - Shooting the longbow relaxed method - Information Technology (IT) promotes getting people who are affected by policies involved in the policy-making process. - O mighty ones ramp worship chords - Queensland health payroll system commission of inquiry - Write 293 805 in two other forms