CostCo Wholesale: Competitive Advantage and Sustainability Analysis

Competitive Advantage and Sustainability Analysis Introduction Costco Wholesale loose its first enclose in Seattle, Washington in 1983. Founders Jeff Brotman and Jim Sinegal had a simple hitherto powerful idea: allow community to save on basic necessities and consumer staples while taking reward of special offers on high-end luxury items and durable goods. With $71 one million million in gross revenue and more than $1 billion in net income for their latest fiscal year, Costco is the leading player in the warehouse rescript atom of the deductive reasoning sell industry, the fifth largest retailer in North America and ninth in the world. This objective of this paper is to analyze Costcos free-enterprise(a) advantage and financing strategy. As part of this analysis, we volition compare Costcos business allegory to its closest publicly traded competitor, BJs Wholesale, to understand the agonistic dynamics of their interactions w ith customers. Furthermore, we go forth analyze whether Costcos competitive advantages are sustainable in the require run. Market Overview and Key Competitors The discount retail business is passing competitive. The warehouse club segment features three players with combined sales of $128 billion.

Costco and Sams fraternity (a subsidiary of Wal-Mart) accounting system for 55% and 37% of sales respectively, and BJs Wholesale comprises 8%. In addition to warehouse clubs, Costco competes with national and regional retailers such as super commercialises, supercenters and oecumenical merchandise retail competitors like Target, Kohls and Wal-Mart. To a lesser extent, Costco likewise c ompetes with single category competitors suc! h as Lowes, groundwork Depot, bargainer Joes and Whole Foods. However, Sams Club and BJs are the primary competitors in the segment, with Sams Club representing its most significant threat due to its kick up the stairs companys greater financial resources, supplier pricing power and grocery penetration. Given this context as well as competitive pressures, Costco has managed to retain its leading position because of superior... If you want to get a full essay, order it on our website: OrderEssay.net

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