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Porter's Five Forces: Wholesale Club Industry

1. Prepare a five forces analysis addressing what is the competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Which of the three rivals Costco, Sams, or BJs Wholesale has the best strategy? Why? Which of the three rivals has been the best performer?

2. Do all three warehouse club rivals Costco, Sams, and BJs Wholesale have highly similar strategies? What differences in their strategies are apparent? Does one rival have a better strategy than the others? If so, why? Does one rival have a somewhat weaker strategy than the other two? If so, why?

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1. Prepare a five forces analysis addressing what is the competition like in the North American wholesale club industry?
Which of the five competitive forces is strongest and why?
In my opinion threat of new entry is the strongest competitive force because there is extreme predatory pricing while there is limited access to certain suppliers.

Which of the three rivals "Costco, Sam's, or BJ's Wholesale"has the best strategy? Why?
I think Sam's Club has the best strategy because it could accomplish cost-efficient distribution through the use of cross-dock distribution centers which enables the warehouse clubs to reduce inventory, increase inventory turnover, reduce transportation costs, improve product quality and increase ...

Solution Summary

Porter's five forces for wholesale club industries are examined.

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