Question: How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sam s Club? Over BJ s Wholesale? If so
How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sams Club? Over BJs Wholesale? If so what is the nature of its competitive advantage? Does Costco have a winning strategy? Why or why not?
Select yes for those statements below that are accurate and choose no for those that are not.
Costco has grown to become the third largest retailer in the United States and the world, and the clear leader of the discount warehouse and wholesale club segment of the North American retailing industry.
Yes
Net sales at Costcos warehouses are rising briskly; memberships and membership fees are likewise rising. Sales per warehouse location are exceptionally robust.
Yes
Costco has ample opportunities to open additional warehouses annually for many years to come, thus paving the way for continued growth in sales and membership.
Yes
The companys stores attract upscale consumers in large numbers; many members are loyal Costco shoppers.
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Costco has recently had the slowest rate of growth in sales revenues, operating income, and net income.
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BJs Wholesale is clearly a distant third in the membership warehouse segment and will likely never match the other two rivals in terms of total numbers of stores or sales per store or overall customer draw and allure.
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BJs operating return on assets is comparable to Sams warehouse.
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Costco is likely destined to remain the clear market leader in the membership warehouse segment for some time to come. Neither of Costcos two rivals in the membership warehouse segment is in a position to challenge or overtake Costco as the market leader in sales.
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Costco has grown to become the second largest retailer in the United States and the world.
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