Costco's Competitors Analysis
The discount stores industry is highly competitive. Costco Wholesale Corporation directly competes with Wal-Mart stores and its subsidiary Sam’s Club, Target Stores, Kroger, BJ's Wholesale Club, and indirectly competes with e-commerce businesses such as Amazon.com etc. The key aspects of Costco's strategy have already been identified as ultra-low prices, limited product selection, treasure-hunt merchandising, to low-cost emphasized efficient productivity and its long-term growth strategy. Considering the data available (Exhibit 3) and from the chart below, over the past five years’ average revenue growth of Costco is higher than its competitors which is 8.31% where as Walmart landed with 3.54%, Kroger with 7.17% and Target with 2.13%. From the above chart, we can clearly observe that Costco’s sales are increasing linearly at a steady rate YOY. However, Walmart’s sales are decreasing alarmingly. …show more content…
It is clear from Costco's dominance in those categories that its emphasis on efficiency and keeping operating costs at a bare minimum (Exhibit 12) is a competitive advantage over all its competitors. Another competitive advantage that the company has is its commitment to good compensation to its employees (Exhibit 13). Costco trounces its competitors because of its dedicated personnel to which they provide high salaries and
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