The Five Generic Competitive Strategies
Chapter 5 – Assurance of Learning Exercise, Competitive Strength Assessment Chart, Five-Forces Model & Case 4

Strategic Management – MBA 5900
The Five Generic Competitive Strategies
Chapter 5 – Assurance of Learning Exercise, Competitive Strength Assessment Chart, Five-Forces Model & Case 4

The Five Generic Competitive Strategies
“The company boast on its advertisements that its products are rated number one by consumer magazines and are not sold at Lowe’s or Home Depot”
“The company boast on its advertisements that its products are rated number one by consumer magazines and are not sold at Lowe’s or Home Depot”
Chapter 5 – Assurance of Learning Exercise, Competitive Strength …show more content…

They are allowed to shop as early as 7:00am. This created an exclusive membership for businesses and in a sense “made them feel special” BJ’s strategy was to focus on its members through merchandising strategy that focused on a customer friendly shopping experience. BJ’s also stocked a larger product assortment that contained about 7,000 additional items than that of its competition. They also differ in the size items that are sold. Items are sold in smaller packages, which makes it easier for customers to carry. All three strategies are very similar but unique in its approach to consumers. BJ’s, being the underdog in the industry seem as if it has a better strategy than the other two. BJ’s came up with ways to make it more convenient for the shopper to buy products and has implemented strategies in order to keep consumers happy. Strategies such as online shopping, making packaging smaller, accepting manufacturer’s coupons, accepting more credit and debit payment options than its competitor’s are all reasons why BJ’s strategy is somewhat stronger than the other two.

3. Costco was the most profitable, ending with Net Sales in 2009 of $69,889 and total revenue of 71,422.

Operating Profit = Operating Income / Revenues

2.5 = 1,777 / 71,422 (Costco) (Downward trend from 2008)

3.5 = 1,646 / 46,899 (Sam’s Club) (Downward trend from 2008)

2.2 =