Question & Answer: What is the competition like in the North American wholesale club industry and…..

Costco Wholesale, Sam’s Club, and BJ’s WholesaleClub are the three biggest players in the North American wholesale club industry. They control the market entirely and there are only few small players who have not impact on these players.Costco Wholesale is the largest membership only warehouse club in USA.Because there are only three largest players they use rivalry marketing by predatory pricing and aggressive marketing campaign to attract and retain the buyers.Among the 5 competitive forces of porter marketing and distribution, and branding are tough to compete against these industry giants.Entry of new entrants and product substitute is virtually low because new comer won’t sustain in the industry and being the wholesalers product substitute won’t effect them.