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

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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    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

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