Industry $1.6 trillion in retail and wholesale trade (2001) 15% of GDP (1960) 16% of GDP (2001) Department stores Customer service premium Many SKUs Discount stores Low prices No frills Retail Industry Wholesale clubs Membership only Volume discounts Limited SKUs Online stores Convenience Low overhead Sears, Roebuck, & Company Founded 1893 First retail store opened in 1925 $41 billion in sales (2001) 2,185 stores Wal-Mart / SAM’S Club Founded 1962 First SAM’S Club opened in 1983 $218 billion in sales
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Costco Wholesale Corporation 1. Describe Costco’s Business Model. Description must identify and describe model components. Costco’s business model was to generate high sales volumes and rapid inventory turnover by offering its members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. The components that stick out to me in this model are the low prices, brand names/select private label, and membership. A) Discuss
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Case 4 Competition among the north American warehouse clubs Competition is extremely high in the north American warehouse club industry. Every wholesale club wants sell top-quality merchandise at consistently lower prices than others to draw customers. They have low labor costs and don't spend much on ads and customer service. Competition of like terms is the strongest because all warehouse clubs sell similar products, but they try to compete by lowering the price of them. The threat of substitutes
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Buyers The pressure the wholesale clubs are experiencing with their buyer is just moderate since there are only few factors that gives the buyer a moderate bargaining power. Buyers switching costs to non-warehouse types of supermarket is somehow high since other traditional and retail outlets are readily available Since warehouse clubs do not offer retail products, customers can easily switch to retailers if they feel that the bulk products that the warehouse are offering are too many and the
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Sgfasgasgasg S F Asf A G Sg Sgasgas G S Dasljsf Jkhs s fiCostco is a wholesale clubs that operated a chain of warehouses that sold food and generalmerchandise at large discounts to member customers. It’s closest competitors are SAM’s Cluband BJ’s Wholesale. Costco win the competition by targeting a wealthier clientele of smallbusiness owners and middle class shoppers. There are several strategies that used to makedifferentiation: a) Segmented target market: Wealthier clientele
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Costco case study and strategic analysis Costco Wholesale Corporation (Costco), one among the few largest wholesaler giant differentiates itself applying unique strategies relating to production and operations, and marketing which make it stand out from the rest of the retailers who are also said to be competitive in the retailing and wholesaling business globally. Costco is one of the innovative wholesalers teamed by very dynamic management team and dedicated, motivated and satisfied workforce
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BUSINESS NOVEMBER 23, 2010 The Just-in-Time Consumer By ELLEN BYRON Julia Robinson for The Wall Street Journal Rebecca Seabern in her destocked pantry. She is using groceries that she already has before buying more. Executives peddling wares from canned goods to cashmere say the shift in consumption habits is prompting them to change how they produce, package, price and deliver their goods. When the economy sank two years ago, Rebecca Seabern realized she could shrink her grocery bill just
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Case 2 Case summary Costco Wholesale in 2012: Mission, Business Model, and Strategy Jim Sinegal, co-founder and long-time CEO of Costa Wholesale, was the driving force behind Costco’s 29-year march to become the third largest retailer in the United States, the seventh largest retailer in the world, and the clear leader of the discount warehouse and wholesale club segment of the North American retailing industry. Sinegal spent considerable time
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The warehouse and wholesale segment of retailing is a very successful and fast growing industry. In 2011 it was a $155 billion business in the United States alone, and growing at a rate that was 15-20 percent faster than retailing in its entirety. Offering low prices and legitimate quality with reasonably priced membership fees, the retail warehouse industry is particularly attractive to households with large families, bargain hunters, small business owners, churches and non-profit organizations
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Albert Gonzalez is charged with swiping credit card numbers of more than 160 million accounts through many major retailers. Gonzalez and his team were charged with conspiracy to commit computer fraud and wire fraud. The computer fraud charge faces a maximum penalty of five years in prison and a possible maximum fine of $250,000, and the wire fraud charge faces a 30 year and $1 million fine on. This could rise to twice the amount that Gonzalez gained through the committing of the crimes if his
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