Competition Among the North American Warehouse Clubs Essay Example

have a good strategy to recruit future clients. You always see them trying to engage future customers in activities and offering them coupons so that they get them to enroll in a membership. Costco focuses on the ability of increasing the membership base and to employ well executed merchandising techniques to induce members to shop more often. One of the advantages that BJ’s has that could be a weak point on the strategies of the other two, is that it is the only major warehouse operator to accept manufacture’s coupons, which rovided added value for members.

I believe that Costco is the one that has been able to achieve all the requirements to succeed. Better prices, large member base, good selection of products and a well trained work force. Which of the three rivals has been the best performer? Five years from now, will Costco’s standing as industry leader be stronger or weaker? Are the other two rivals likely to gain or lose ground on Costco? Why? What recommendations would you make to Jim Sinegal to sustain Costco’s growth to improve the company’s financial performance?