With consumers cutting back on their spending, a number of retailers in the U.S. have struggled with positive sales growth in the recent years. However, warehouse platforms have performed reasonably better due to their attractive cost saving advantages. While retail sales are dependent on the economic environment, Sam’s Club has provided significant positive sales growth. Furthermore, there are several driving factors of Sam’s Club business that makes it a competitive advantage over the market that’ll help Sam’s Club remain at the front of the industry growth. Compared to an annual membership fee of $55 at Costco and $50 at BJ’s, Sam’s Club charges only $40 for a one year membership. While executive members pay $110 at Costco, Sam’s Club’s
plus members pay $100 for similar benefits. Costco operates 439 stores in 40 states of the U.S. and Puerto Rico. The retailer earns about 24% of its domestic revenues from the region. On the other hand, Sam's club is evenly spread throughout the U.S. with 620 stores in 47 states and Puerto Rico. Additionally, Sam's Club is the only warehouse club that offers Apple products, which gives the company more competitive advantage over Costco. Sam's Club also provides services for delivery, installation and technical support. When it comes to groceries, Sam's Club was found to be cheaper than Costco. With rising food prices, retailers can either increase their product prices or absorb the costs, which can affect their margins. Sam’s Club utilizes its sheer size; higher gross margins and efficient supply chain to better absorb food inflation costs. This puts Sam’s Club in a position to offer food products at attractive prices. Given these advantages over Costco, I believe that Sam’s Club is well positioned to improve or its market share. To continue this growth, I recommend that Sam’s Club follows the three economic principles of The Market Value of a Firm Depends on its Management Planning for Growth, Development is an Economically Efficient Business Practice and Efficient Planning is Not a One-Time Event by implementing a manager training program to ensure the company is acquiring top talent.
Dollar Tree’s acquisition of the Family Dollar stores will better equip them to compete with the leaders in the market such as Wal-Mart, Target, and Dollar General. The acquisition of Family Dollar establishes a new giant of the dollar-discount industry; Dollar Tree will expand significantly to 13,000 stores throughout the United States and Canada (DollarTree.com, 2015). This acquisition also increases Dollar Trees’ access to markets with lower incomes, increases their buying power and their ability to negotiate greater discounts from suppliers while still discovering ways to reduce
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales
With the ever growing society that we live in today, it is a challenge to uphold a business with conservative values. When attempting to accommodate all stakeholders, taking a conservative approach can be very limiting. As conservative companies expand nationally and internationally, they face the challenge of needing to appease a wide range of customers that hold different values. With that being said, Chick-Fil-A has become a very controversial company in the past years with questionable ethical decisions pertaining to gay rights.
Ben & Jerry’s Homemade Holding Inc., commonly known just as Ben & Jerry’s, produces ice cream, frozen yogurt, and sorbet. Founded in Burlington, Vermont in 1978, the company is a subunit of the Unilever mega-company. Founders Ben Cohen and Jerry Greenfield created the company after completing an ice cream making course at Pennsylvania State University’s Creamery. In May of 1978, with a small investment totaling a little over ten grand, the two business partners opened an ice cream store in Virginia. Two years later, the two took their talents and started packing their ice cream into pints. In 1981, the company became a franchise, opening their second store in Shelburne, Virginia. Today, Ben and Jerry’s locations have expanded across the globe.
Costco Wholesale Corporation is an international chain of membership warehouses operating on the concept that offering members lower prices will produce high sales volume and rapid inventory turnover (“Annual Report” 4). While Costco warehouses are designed to help reduce costs for small-to-mid-sized companies, memberships are also available for individuals (“Company Profile”). The two memberships offered by Costco include Business and Gold Sta...
In the warehouse segment, Wal-Mart’s Sam’s Club competes harshly with Costco. Costco has fewer warehouses but greater sales and revenues. Costco customers also shop at Costco more frequently than Sam’s Club customers and, on average, spend more each visit as well. Costco’s dominance may be the result of better innovation. Costco offers luxury items and was the first to sell fresh meat and produce, and gasoline. This is important because innovation is a key factor in assessing competitors in an industry.
Like Costco, Sam’s Club still achieves a positive net profit and they only charge an annual fee of $35 a year. Sam’s Club has been able to have an increasing sales figure these past eleven years, with figures in the millions ranging from $26,798 in 2001 to $53,795 in 2011(Thompson. 2014).... ... middle of paper ... ...1-7.
For Oliver’s Market among the five Competitive forces, pressures associated with the threat of new entrants into the market are the strongest one. Because Wal-Mart and Target had announced plans to develop regional supercenters in the Sonoma county region. They are strong candidates for entering the market, because they possess the res...
According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7).
Another thing to consider is a statement made on CNNmoney.com in regards to Dollar Generals consistent store growth that they are only "cannibalizing sales at their other stores and eroding their profits"
How does managerial planning for Project Impact take place at different levels within the organization?
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.