Sam’s Club focuses on delivering members entirely separate discounts and high-quality products, as well as free delivery on many items, discounts on fuel, and discounts on prescription drugs. Sam’s Club excels and stands out from the competition thanks to its qualities; Sam’s Club has automated a number of production stages. As a consequence, resources were used more effectively, expenditures were reduced, and performance indicators were helped to be maintained. It can operate in several areas across the United States because of its reliable and steady distribution network, which guarantees that its products are available quickly and on schedule (Lim, Rabinovich, Park & Hwang). Sam’s Club makes significant efforts in the training and implementation of training programs, which results in a qualified and motivated workforce. Sam’s Club attracts clients worldwide because of its robust social media presence and high engagement rate.
Opportunities are gaps or opportunities for positive things to happen. These are the effects of things that happen outside the company. The whole economy is open, giving Sam’s Club increasing access to new nations with expanding economies. It has the opportunity to profit from its brand name and broaden its selection of products. The ability to analyze current trends allows businesses to acquire a competitive edge in the marketplace as consumers become increasingly aware of them (Lee & Seung-In Kim). The Club today has a vast potential to employ qualified staff thanks to the various improvements in the educational sector in terms of specialized courses. People who use the internet are using it more often. To increase customer traffic, Sam’s Club can strengthen its digital platform.
The most audacious retail invention in recent memory is Sam’s Club Now. Customers use their mobile phones as remote controllers for the whole purchasing process inside the store. They use their phones to scan and pay for everything they want, and then they leave through a monitored exit. Sam’s Club is wise to make use of its current online system to proactively enter new areas and broaden the selection in already-existing ones (Ünver). Sam’s Club has the chance to encourage the same type of top-of-mind commitment both online and at its clubs, much like Amazon Prime customers strive to get the most out of their subscriptions by visiting Amazon first.
Sam’s Club may take advantage of the opportunities presented by the shifting market and spend money strategically on R&D to gain a competitive edge. Although Sam’s Club currently faces significant obstacles, there are numerous opportunities for expansion. Sam’s Club will undoubtedly overcome these obstacles and stay one of the top companies in the world. Sam’s Club ought to have real-time price management over inventory levels in its warehouses and shops and user demand. Such a change would be unheard of, and this notion may cost Costco an amount of revenue.
Sam’s Club is working on converting its outdated locations into fulfillment centers to develop its innovative ideas. If Sam’s Club continues to understand how to transform current store sites into beneficial distribution centers, then that also implies it may turn smaller sections of its shops into warehouses. This would be perfectly complimentary to Sam’s Club’s previously stated scan-and-go ambitions. Sam’s Club could soon encounter a New Retail Philosophy, such as the mental detachment of exploring from purchase and the consumer’s total command over the service encounter.
Customers are demanding more frequent changes from businesses as they become more knowledgeable about the brands they use and the latest trends. There is a chance of losing qualified workers if the corporation expands into international markets. Rivalry is always challenging for businesses with similar product lines, and Sam’s Club has been up against tough competition from its rivals. When there are little or no limits on new businesses entering the market, there really is a considerable danger of losing pricing power. To maintain its position in the market, Sam’s Club needs to come up with fresh strategies.
Works Cited
Lim, S. F. W., Rabinovich, E., Park, S., & Hwang, M. “Shopping activity at warehouse club stores and its competitive and network density implications.” Production and Operations Management 30.1 (2021): 28-46.
Lee, Eun-Joo, and Seung-In Kim. “Guideline for Improvement of Unmanned Shopping Experience-Focusing on Seven Eleven Signature.” Journal of Digital Convergence 17.3 (2019): 389-394.
Ünver, Berna. Interaction of descriptive and predictive analytics with product networks: The case of Sam’s Club. Diss. 2019.