Costco Wholesale: Operational and Marketing Strategies - Case Study Example

To determine overall growth in sales and service provision, companies offering similar services would conduct surveys to establish their dominance in the market. Customers give general feedbacks to determine growth figures and areas that require overall improvements. Costco Wholesale, Sam’s club, and BJ’s Wholesale Clubs have been majorly involved in the American economy to offer users with a wide range assortment of products from well known branded items at discounted prices (Today’s Consumer).

These wholesale clubs have dominated the consumer markets providing intense competition to other retail outlets due to their affordable prizes put on their products. Due to their high sales level and minimal operational hours prompting a fewer number of staff members, these Wholesale clubs have been able to maintain their products offer to a low level that customers are able to afford. Costco has since achieved a higher consumer turnout enjoying a larger market share due to better operational strategies.

My company, Costco boasts of a 56% market share in the Northern American region out of the 1250 warehouse clubs dominating the American retail market. My other two competitors, BJ’s warehouse, and Sam’s club share a percentage of 44% with the later experiencing a market share of 8%. The major factors determining competition lie in the pricing, location, and quality of the products required by the consumers. The company that offered the better service in the recent years has experienced a higher customer turnover and referral that in turn boost development required.

As the growing need for consumer satisfaction grows, the often experienced competition between these three Wholesale clubs has been threatened by other retail discount stores like Wal-Mart. Customers appreciate low service charge delivery on high-quality products and at the least time limit possible.