Price Club Swot Analysis

Introduction

PriceSmart Incorporated an American company is the largest operator of membership warehouse clubs in Central America and the Caribbean selling food and consumer goods. The multinational operation serves over one million cardholders in thirty nine owned and operated warehouses spread across twelve countries and one US territory. PriceSmart warehouse clubs can be found in Colombia (7), Costa Rica (6), El Salvador (2), Guatemala (3) Honduras (3), Nicaragua (2), Panama (5), Aruba (1), Barbados (1), Dominican Republic (3), Jamaica (1), Trinidad and Tobago (4), and U.S. Virgin Islands (1). The company also offers online shopping to members in all countries.

History

Price Club was founded in 1976 by Sol Price, his son Robert and business

Price Club was opened on the outskirts of San Diego. Because the businesses the company catered to did not have the financial capabilities of larger organizations, they had to tailor the goods to meet their customer needs. They started with office supplies and moved onto other items like tires, food paper products and a range of other items. The company opened its doors to members who could show proof of business activity. Price Clubs first year of business proved troublesome for the owners, bringing in $16 million dollars in sales but with a loss of $750,000. The loss baffled the Prices until they decided to extend membership to Government employees like, hospitals and financial institutions. This new policy turned the company into a massive success story. In 1980, Price Club went public and eager investors allow wanted to share in the rapid growth of the chain. Price Club entered the public domain with a nearly $150 million dollars in sales and earning $6 million dollars in profits before taxes. By the end of the nineties, Price Club operated more than fifty clubs and its revenue was close to $5 billion. The company had established its name as the industry leader and enjoyed success until competition from other

John Heffner holds the title of Executive Vice President and Chief Financial Officer since January 2004. He assumed this position after serving as a consultant for the company for many years. PSMT’s Executive Vice President and Chief Operating Officer, William Naylon has operated in his position since January 2002, Naylon has been employed with the company since 1998. The team has five Executive Vice Presidents in Operations, Construction Management, Real Estate, Distribution and Logistics, and Merchandising Officer and twelve Senior Vice Presidents in Latin America and the Caribbean Legal Affairs/FCPA Chief Compliance Officer, Treasurer, Corporate Controller, International Controller, Marketing and Member Services, Operations for El Salvador, Guatemala and Honduras, Operations for South America, Merchandising, Hardlines, Softlines and Caribbean Merchandising, Business Merchandising and Operations and Distribution. The team as a whole and as individuals has accumulated considerable knowledge in the retail industry that is evident in their decisions and financial