Comparision Between Costco and Sam' Club

Introduction In today’s world, service quality is the most important factor that sets top business apart from other mediocre ones. One question is often being asked in the business world: how to improve service quality? The answer really relies on service market strategies. Service marketing strategy is a process that allows an organization to focus most of its existing resources on the area where the organization can take most advantages to increase sales and achieve a sustainable competitive advantage to the other service providers. Operational excellence Companies that are operationally excellent deliver a combination of quality, price, and ease of purchase that no one else in the same market can match. Although these companies are neither product or service innovators, nor extremely expertise in one-to-one relationships with their customers, they execute well by providing customers hassle-free service with guaranteed low price. Operationally excellent companies focus their resources on the major brain-trust at central locations, where standard operating procedures get refined and decisions are made about acquiring and using capital-intensive assets(Treacy& Wiersema, 1997).

Companies overview
Costco
Costco Wholesale Corporation (Costco) is an in-store retailer, operating a chain of membership warehouses. The company also offers its products online, through websites such as costco.com in the US and costco.ca in Canada. Categories of the company’s product include sundries, food, soft lines, fresh food and ancillary, and others. In addition, the company operates gasoline stations in the US and Canada. Costco has 566 operational warehouses all over the world. Majority of all these stores locate in North America with 413 in the US and Puerto Rico, 32 in Mexico, 77 in Canada. The rest of them scatter all over the world with 21 in the UK, 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia. Costco is headquartered in Issaquah, Washington, United