SWOT analysis of BJ’s Wholesale Club

adam May 25, 2012 Retailing No Comments

In 1984, one of the retailing company was founded which is named as BJ’s Wholesale Club that is owned and run by the Chairman and CEO Herbert Zarkin and Laura J.Sen. It is headquartered in Westborough, Massachusetts, Unites States. The company is allocated almost about in 187 places and is providing its services to the Ohio and the East Coast of the United States. The company is engaged in the manufacturing of the merchandise.

BJ’s Wholesale Club SWOT Analysis

BJ’s Wholesale Club Strengths

• The company is placing a very strong position in the market as because of producing the goods and services al reasonable cost.

• The different and unique products manufactured by the company differentiate themselves as from the competitors in the market.

• The BJ’s Wholesale Company is enjoying a very strong phase of the customer’s loyalty to the brand as they are trying to seek the awareness of the customers.

• The great advantage the company is taking from its name of the brand that is now very much established.

BJ’s Wholesale Club Weaknesses

• The non proficiency of work in the company decreases the rate of profitability can obvious growth rate become declined or stagnant.

• The pays provided to the employees of the BJ’s Wholesale Company are very high that increases the overall cost of the company.

• The company is involved in the selling of the older stock that lacks the interest of the customers towards the brand.

• The company has weak team of management that supervises and control the various issues of the company as related to the reduction.

• The company decreases its market shares a because of the high debts that are taken to fulfill the financial stability.

BJ’s Wholesale Opportunities

• The BJ’s Wholesale Company can easily improve enhance and expand its shares in the various disjoined markets.

• The strong financial position in the market provides the opportunity to the company in order to expand and broaden the production.

• The more and more new locations can support the growth in the sales and revenues of the company.

• The company should try to acquire many of the small businesses or the firms especially in the foreign countries to increase the profitability.

• The new and innovative productions are the advantage for the company to grasp the attention and interest of the company.

BJ’s Wholesale Threats

• The company is experiencing a very tough and intensive competition in the market as in the field of general retailing.

• The cost made on the products and commodities of the company are higher as compared to the ratio of the profitability.

• The bad economy is facing by the company that means that the factors of the improvements are decreases at the BJ’s Wholesale Company.

• Very concentrated and powerful competition in the stores of grocery also limits the scope of expansion for the company.

• The company is selling most of its previous stock and the customers are now interested in the some innovations as the interest and taste changes with time.

References

• www.BJ’s.com, Accessed on 23 May 2012.

• Egan, M. (2011). "BJ’s Sales Fall Short; Store Closings Planned".

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