Using this model in China will be irrelevant as they have a different operating approach of thinking compared to that of China, which focuses more on consumption. A key segment of the wholesale model is membership. However, China being a communist nation it advocates for the distribution of property. This implies that the debtor can save on money and the cardholder is able to obtain cumulative credits from the store. Thus, both parties benefit from the transaction. Thus, none of the parties is eager to become a member of the wholesale store, but prefer to borrow a member from the other.
Additionally, consumers’ doing shopping in a wholesale store means that there are many goods available, which makes having a car a crucial element. Since the population in China is high and the number of individuals having their own cars is high, finding sufficient parking space to sustain the vast number of vehicles is hard. This then makes the shopping experience at a wholesale store problematic.
Summary
In 2010, over $125 billion of the discount wholesale and warehouse club segment in the U.S> retailing industry was made up of three main competitors. These were Costco Wholesale, B.J’s Wholesale Club and Sam’s club. Costco stands as the third largest American retailer and is eighth globally. The company has a total of 567 warehouses. B.J’s Wholesale Club is also sizable and has 187 warehouse clubs. The company focuses on Eastern U.S. from Florida to Maine. Sam’s Club operates 596 warehouses in 48 American states. In addition, the company has 23 warehouses located in Brazil and 89 in Mexico, 9 in Puerto Rico and 3 in China.
Conclusion
Costco Wholesale, B.J’s Wholesale Club and Sam’s club have similar business strategies. One such strategy is the realization of the need to expand in strategically favorable regions. Secondly, the companies have a similar pricing strategy. All of them sell products at competitively low prices but Costco stands out among them. The company also sells quality products and this helps to create customer loyalty. To improve, Costco can make its business processes more efficient. Quality must also be maintained. Consistent growth may also be achieved through strategic expansion to other countries. Through aggressive advertising and strategic partnerships, the country can increase its market share.
