2. All three warehouse club rivals have some similarities and some differences. They all maintained the goal of selling top-quality merchandise at low prices. They have a few differences when it comes to pricing, merchandising, advertising and growth. Costco stands out because their markups and prices were only fractionally above the level needed to cover expenses and operating costs. They also use a treasure hunt method for merchandising that is unique to them. Much money is not spent of advertising for Costco or Sams like for BJ’s, and their growth strategy is to build more warehouses and build membership base. Costco appears to have the best strategy, it just seems to be more thought out and planned. BJ’s has the weaker strategy, if you base it off of numbers. If they did not have such successful competitors then their strategy could work well.
6. Jim Sinegal definitely has an eye for what he is doing. I believe Costco’s strategy is simple, effective and great to say the least. Sometimes simple is more. If Costco’s strategy remains the same for the next 70 years, I believe they will still be leading the Warehouse industry. Continue to expand in necessary areas within and outside of the United States, while also increasing and maintaining their current membership base. A few recommendations for the far future would be to invest in a few of BJ’s ideas, such as technology initiative, accept more payment methods (American Express and Visa), offer more services and possibly begin rare one day pass giveaways.
8. BJ’s Wholesale has a lot of improvement that can be done to boost revenue growth and overall financial performance. They should almost model Jim Sinegal and Costco to begin with. From reading this case, I have gathered that BJ’s Warehouse spends entirely too much money on unnecessary things. It has been proven by Costco and even Sams that not much ‘extra’ stuff is needed to succeed in the industry. I believe it may be the fact that they came in...
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