Notes for Policy Essay

383 Words2 Pages
BJ Wholesale has an external strategy that enables it to be a power house in the wholesale club market. For example, even though they have some of their locations close to a Costco or Sam’s Club, which are its main competitors, BJ consistently outperformed Sam’s or Costco at all locations except for one store which was located less than 10 miles away from a competitor. Another advantage that BJ has is that none of their employees are unionized. This helps BJ to change its pay rates when needed in order to maintain a sustainable competitive advantage. Because if its employees were unionized it would have to keep pay rates higher than normal, even if BJ was having trouble creating a profit. The profit that BJ creates is collected by selling a large assortment of high quality items to at a reasonable price. Its pricing categories are made simple because they are “good, deluxe, and luxury.” This makes it easy for customers to know exactly the quality of what they are purchasing. It also has later store hours than their competition which helps it create more revenue by staying open later than the competition. Even though BJ has a large number of items it might not have everything that its customers want. Nevertheless, it has a strategy to make up for not having certain items. This strategy is having online purchasing where customers can buy items that are not on BJ’s store shelves. Even though BJ has many strengths and seems to not have any cracks in its armor, a little digging will show that it still have a few weaknesses that it needs to look at before problems occur. One of these items is its competitors buying power, mostly pertaining to Wal-Mart and Sam’s Club. Sam’s club is better known than any other wholesale club since it’s related to Wal-Mart. As a result Sam’s Club is able to get more items at a more reasonable price. Another weakness of BJ is
Open Document