The US Carpet and rug industry is experienced a decline in the number of manufactures because of mergers, acquisitions and bankruptcies. Mid 1980, more than 300 companies in early 2000, about 100 companies were eliminated from industry, 96 US based and Canadian based, most of which are private held companies. By 1999, it was estimated that 10 companies in the industry produced 91% of carpet and rug sales in US. Three companies, Shaw industry, Mohawk Industry and Beaulieu of America, accounted for about 85% of US residential carpet and rug sales. There have been three major competitive trends that occurred within the industry. Firstly, In Mid-1980, the largest carpet and rug manufacturer began to eliminate floorcovering wholesaler. Then, they sell directly to retailer in large numbers. The company establishes their sales offices located in manufacturer-operated distribution in order to capture the margin paid to manufactures and to decline negative manufacturer profit margin. Secondly, in early 1990, wholesale and retail distribution for residential carpet and rugs in US was experienced. Department stores, furniture outlets and independent retail stores were being replaced by large mass-merchandise and discount stores such as K-mart and Wall-mart, and by home centers such as home depot in order to capturing an increasing share of residential carpet and rug sale. This create a new occurrence among specialty outlets; the buying group. That is type an organization of similar retailers that combine their purchases to obtain price discounts from manufactures. The advantage of buying group is to obtain buy more product and less pay for them. Gaining lower price carpet and rug with its serves provide the company to have competitive advantage over other companies. The retail purchasing in buying groups to gain price discounting and easy and less expensive for a manufacturers