Essay: Rivals of Costco Company

Sample Essay

The company is rivaled by significant giants like Wal-Mart and Target with Wal-Mart holding its place as the leader of the discount and variety store market. Wal-Mart has an industry capitalization of 197.55 billion dollars while Costco is on the third position bearing only 25.43 billion dollars. Companies like Target, Dollar Tree Inc, Big Lots Inc, Family Dollar Stores Inc, Fred’s Inc, Price Smart Inc. and 99 Cents only Stores are tough competitors of the Costco as well (Yahoo! Finance).

Product differentiation

Costco, like other warehouse based companies, offers a wide range of products covering almost every aspect of life. It has been shelving items from baby care to household items as well as entertainment and business tools to cater every customer’s requirement. Like Wal-Mart, The products offered by other competitors in the market are nothing but identical to what Costco has to offer. Differentiation of product range among the companies is negligible, consequently, there are no such products that differentiate Costco from any other rivals in the market (Costco Wholesale).

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