IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v8y2014i4p25-39.html
   My bibliography  Save this article

A Comparative Analysis Of Major Us Retailers Based On Enterprise Marketing Efficiency

Author

Listed:
  • Ramon Corona

Abstract

The purpose of this research was to analyze financial results of four major US retailers from June 2006 until August 2008 and compare their tactics to create shareholder’s value, using key performance and enterprise marketing ratios. This is a relevant study given the different business models and strategies used by these companies, as well as their strong rivalry in the retail industry. The study highlighted Walmart and Costco given their recent growth and competitiveness. The results showed that Walmart was superior in attracting investors willing to pay a premium for the stock. On the other hand, Costco created an average of $10.32 dollars of sales for every dollar spent in Sales, General and Administrative expenses, whereas Walmart produced only $5.44. In other words, Costco created twice as much sales volume for every dollar spent in these expenses. Further, the Maximum Earnings Market Share displayed that Costco could have made $3,660 million more in that period, whereas Walmart spent $26,300 million more than needed to increase earnings in the same period.

Suggested Citation

  • Ramon Corona, 2014. "A Comparative Analysis Of Major Us Retailers Based On Enterprise Marketing Efficiency," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(4), pages 25-39.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:4:p:25-39
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n4-2014/GJBR-V8N4-2014-3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mark Bergen & Margaret A. Peteraf, 2002. "Competitor identification and competitor analysis: a broad-based managerial approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 157-169.
    2. Judith A. Chevalier & Fiona M. Scott Morton, 2008. "State Casket Sales Restrictions: A Pointless Undertaking?," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 1-23, February.
    3. Ramon Corona & Nelson Altamirano, 2010. "Is The Treasure Hunt Strategy Working For Costco?," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 83-93.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Annette Ptok & Rupinder P. Jindal & Werner J. Reinartz, 2018. "Selling, general, and administrative expense (SGA)-based metrics in marketing: conceptual and measurement challenges," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 987-1011, November.
    2. Radojko LUKIC & Dragan VOJTESKI KLJENAK, 2019. "The Analysis of the Interest Cost of the Trading Companies in Serbia," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 4(2), pages 1-13, June.
    3. Radojko LUKIC, 2018. "The Analysis of the Operative Profit Margin of Trade Companies in Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(5), pages 458-475, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steffen Runge & Christian Schwens & Matthias Schulz, 2022. "The invention performance implications of coopetition: How technological, geographical, and product market overlaps shape learning and competitive tension in R&D alliances," Strategic Management Journal, Wiley Blackwell, vol. 43(2), pages 266-294, February.
    2. Pätäri, Satu & Puumalainen, Kaisu & Jantunen, Ari & Sandstrüm, Jaana, 2011. "The interface of the energy and forest sectors--Potential players in the bioenergy business," International Journal of Production Economics, Elsevier, vol. 131(1), pages 322-332, May.
    3. Bruno Deffains & Dominique Demougin, 2023. "Capitation taxes and the regulation of professional services," European Journal of Law and Economics, Springer, vol. 55(2), pages 167-193, April.
    4. Gautam Pant & Olivia R. L. Sheng, 2015. "Web Footprints of Firms: Using Online Isomorphism for Competitor Identification," Information Systems Research, INFORMS, vol. 26(1), pages 188-209, March.
    5. Christian Hofer & Jordan M. Barker & Laura D'Oria & Jonathan L. Johnson, 2022. "Broadening our understanding of interfirm rivalry: A call for research on how supply networks shape competitive behavior and performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(2), pages 8-25, April.
    6. David E. Harrington, 2007. "Markets: Preserving Funeral Markets with Ready-to-Embalm Laws," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 201-216, Fall.
    7. Jerry Ellig, 2015. "State funeral regulations: inside the black box," Journal of Regulatory Economics, Springer, vol. 48(1), pages 97-123, August.
    8. Chiara Farronato & Andrey Fradkin & Bradley Larsen & Erik Brynjolfsson, 2020. "Consumer Protection in an Online World: An Analysis of Occupational Licensing," NBER Working Papers 26601, National Bureau of Economic Research, Inc.
    9. Balaji Abraham & Rohit Kumar, 2020. "Dr. Reddy’s Laboratories Ltd: Searching Its Glorious Days," South Asian Journal of Business and Management Cases, , vol. 9(3), pages 359-374, December.
    10. Gisela Casado Salguero & Manuel Ángel Fernández Gámez & Ignacio Aldeanueva Fernández & Daniel Ruíz Palomo, 2019. "Competitive Intelligence and Sustainable Competitive Advantage in the Hotel Industry," Sustainability, MDPI, vol. 11(6), pages 1-12, March.
    11. Mainali, Brijesh & Mahapatra, Krushna & Pardalis, Georgios, 2021. "Strategies for deep renovation market of detached houses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    12. Ramon Corona & Nelson Altamirano, 2010. "Is The Treasure Hunt Strategy Working For Costco?," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 83-93.
    13. repec:inr:wpaper:248290 is not listed on IDEAS
    14. Wu, Jie & Zhao, Narisa & Yang, Tong, 2024. "Wisdom of crowds: SWOT analysis based on hybrid text mining methods using online reviews," Journal of Business Research, Elsevier, vol. 171(C).
    15. Wu, Jie & Ma, Zhenzhong & Liu, Zhiyang, 2019. "The moderated mediating effect of international diversification, technological capability, and market orientation on emerging market firms' new product performance," Journal of Business Research, Elsevier, vol. 99(C), pages 524-533.
    16. Jeongsub Choi & Byunghoon Kim & Ho-shin Lee, 2024. "Competitor identification with memory in a dynamic financial transaction network," Annals of Operations Research, Springer, vol. 341(1), pages 349-374, October.
    17. Tim Wallrafen & Georgios Nalbantis & Tim Pawlowski, 2022. "Competition and Fan Substitution Between Professional Sports Leagues," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(1), pages 21-43, August.
    18. Angelo Corallo & Fabrizio Errico & Maria Elena Latino & Marta Menegoli, 2019. "Dynamic Business Models: a Proposed Framework to Overcome the Death Valley," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 1248-1271, September.
    19. Conor Norris & Edward J. Timmons, 2020. "Restoring vision to consumers and competition to the marketplace: analyzing the effects of required prescription release," Journal of Regulatory Economics, Springer, vol. 57(1), pages 1-19, February.
    20. Radoslaw Wisniewski & Aneta Nowakowska-Krystman & Tomasz Kownacki & Piotr Daniluk, 2024. "The Impact of the Rule of Law on Energy Policy in European Union Member States," Energies, MDPI, vol. 17(3), pages 1-31, February.
    21. Yuanyang Liu & Gautam Pant & Olivia R. L. Sheng, 2020. "Predicting Labor Market Competition: Leveraging Interfirm Network and Employee Skills," Information Systems Research, INFORMS, vol. 31(4), pages 1443-1466, December.

    More about this item

    Keywords

    Marketing; Enterprise Marketing; Market Value; Efficiency; Market Share; Costco; Walmart; Retail Industry;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • G1 - Financial Economics - - General Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:8:y:2014:i:4:p:25-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.