Competitive Force of a Buyer-Warehouse Clubs in U.S.

In: Business and Management

Submitted By cll113
Words 1048
Pages 5

The pressure the wholesale clubs are experiencing with their buyer is just moderate since there are only few factors that gives the buyer a moderate bargaining power.
Buyers switching costs to non-warehouse types of supermarket is somehow high since other traditional and retail outlets are readily available Since warehouse clubs do not offer retail products, customers can easily switch to retailers if they feel that the bulk products that the warehouse are offering are too many and the discount price is not that big. Bj's warehouse are trying to attract retail buyers by offering smaller package sizes that are typically seen in the supermarkets.Other types of supermarkets and specialty stores are readily available to buyers.
Shoppers also have the opportunity to postpone purchases and can window shop in other supermarkets and the like if they feel that the prices are high. This is the reason why wholaselers clubs make sure that they offer the best possible price.The limited choces in warehouse club can also be a cause for shoppers to shift to other supermarkets and department stores which offer a lot of variety of merchandise.
Membership Fees are also constraining new potential buyers. Some shoppers feel that it is better to use the membership fee to purchase products. Shoppers can also buy the same product in other stores that do not have membership fees. Bjs warehouse club tries to contradict this by having a strategy where non-members can shop in a certain day and see and experience the advantages and perks of being a member of a warehouse club.m;pojioj
Buyer switching cost to other warehouse club is high since membership fees are paid also to other warehouse clubs.- In order to shop or switch to other warehouse clubs, new customers need to pay around $30-$100. Membership fees also serves as a loyalty card to customers. Rebates and additional…...

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