Sam's Club Competition

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Rivalry among Competing Sellers In the industry of wholesale clubs, it is apparent that there is a plethora of competition between businesses. In the case involving Cost Co., the competing wholesale clubs attempt to take specific measures to ensure a competitive edge over the other. The majority of chief competitors Cost Co faces includes Sam’s Club, BJ’s Wholesale Club, and a few smaller less known clubs make up for a small portion. Sam’s club used a very similar technique involving how they priced the items they sold. They made small profit margins on most of their products but they got the most of their competitive edge by selling their treasure hunt items. Unlike Cost Co. They were able to offer less known brands as an alternative, at a cheaper price. Cost Co. used this against them and established acquisitions with the top brands that their clientele were willing to buy. BJ’s wholesale club’s used a different approach to get an edge over the competition. This involved offering a wide variety of nearly double the amount of products than Cost Co. or Sam’s Club. In rebuttal, Cost Co. competed against BJ’s by offering a smaller variety of items but focused in more on the items that sold the quickest to further improve their turnover. This makes the rivalry between these companies very strong. Since these companies make the…show more content…
These products range from everyday household items, food, appliances, etc. For example, Sam’s Club specifically carried items that weren’t top brands but, were very comparable to those sold at Cost Co. and came with a lower price tag. There are also some smaller retail and supermarket businesses that can also match or beat the prices of Cost Co. on certain items with alternative brands, so, I would say there is a Strong competitive force.

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