Costco case study strategic management

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Costco case study strategic management

But unlike their competitors they pay well to their employees. One of the key uniqueness and strength is that they sell membership to their customers that not only generate the fixed revenue every year but also increase the brand loyalty and awareness of the customers towards Costco.

They advertise very less thereby reducing the cost by two percent each year. One of the crucial factors of Costco is their pricing strategy.

They have unique way or mechanism that helps them keep the price lower than that of competitors and they can still afford to pay 48 percent higher salaries to their employees than their major competitors mainly Wal-Mart.

Their membership base is growing and they are able to retain their customers. Virtually, they do everything to retain their customers. Most importantly they have very incredible return policies in hand to attract and retain customers. Furthermore, they try to find the best value pack for almost every product they sell in their location store.

Costco Case Study And Strategic Analysis Costco Case Study Costco Case Study The chief elements of Costco’s strategy are low pricing, limited product selection, and a treasure hunt shopping environment. Costco case study and strategic analysis. Written by Miles Media on May 30 The mission statement of the Costco is well understood throughout the organization by the management and employees. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise. Costco’s Mission, Business Model, Strategy & SWOT. Updated on Updated on March 25, Case Study & Case Analysis, Costco Wholesale, Global Economy, Operations Management, Retail Industry, SWOT Analysis. Costco’s Operations Management, 10 Decisions, Productivity;.

For example, they have thousand packet box of Splenda sugar free sweetener. They generally engage in bigger packages because they believe that bigger package provides better value and cost savings to their customers.

Costco applies several other strategies to achieve corporate wide price leadership strategies. The mission statement of the Costco is well understood throughout the organization by the management and employees. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise categories.

Businesses and families can rely on Costco to offer high quality goods and services at everyday low prices. Rapid inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced handling of merchandise, and making themselves the low cost operator in retail are all key elements that make the company so successful Annual Report Fig: Showing strategic group map of the Costco along with its rivals.

The circle represents the sales revenue.

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This group map shows that Costco Wholesale Corporation has strong competition in the market. Based on market capitalizations and revenue, Wal-Mart is the leader of the discount variety store industry in the US. However, Costco has second highest position based on sales revenue in wholesale store industry of the US market.

The market capitalization of Costco Wholesale Corporation is The trend of the market share price is increasing in the last few months because of the slow economic recovery. As per April 28, at 1: In the competitive discount variety store industry, Wal-Mart is the top Wholesale Company based on the revenue as well as Market capitalization.

In Sales was increased by 1. At the same time, Target Corporation is the second highest company in the industry based on market capitalization. The sales revenue of Target was increased by 0. BJs Wholesale club Corporation has the last position in the industry compared to its competitors as per its sales revenue and market capitalization.

The sales revenue of the BJs wholesale corporation was increased by 2.

Costco case study strategic management

The discount variety store industry one of the mature industry of the US market; some of the company in the industry has international expansion of their business also. Analysis of the completion using strategic group map shows that Costco has numerous well know competitors in the market.

Most of them have wider presence of their business with better brand image.

Costco case study strategic management

Costco is trying to generate huge sales volume and quick inventory turnover by applying a business model that offers limited selections of nationally branded product in a wide range of merchandise categories.Costco: A Case Study.

Misti Walker Costco: A Case Study 1 The best-cost provider strategy is a mix of low-cost provider and differentiation. Strategy The generic competitive strategy employed by Costco is that of the best-cost provider in the wholesale club category.

Costco Wholesale uses its business model to follow its mission statement. However, the internal analysis elements (strengths and weaknesses) and external analysis elements (opportunities and threats) show that Costco’s managers must formulate new strategies for sustained growth and development of the firm.

Costco’s Mission, Business Model, Strategy & SWOT.

Sources Used in Document:

Updated on Updated on March 25, Case Study & Case Analysis, Costco Wholesale, Global Economy, Operations Management, Retail Industry, SWOT Analysis.

Costco’s Operations Management, 10 Decisions, Productivity;. Costco case study and strategic analysis. Written by Miles Media on May 30 The mission statement of the Costco is well understood throughout the organization by the management and employees. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise.

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BUS Strategic Management Case Study #1: Costco Analysis Prepared by: Navdeep Kaur, Emily Keiver, Farai Madzvamuse, Jessica Nortey Question 1: Define the industry in which you believe Costco competes and describe briefly two or three of its immediate rivals. Using the Porter Framework analyze and describe the Industry at the time of the case.

Costco mainly operates in the wholesale retail. View Homework Help - Costco Case Study from MKTG at Azusa Pacific University. Johnson 1 Kim Johnson Dr.

Check Out Our Costco Case Study and Strategic Leadership Essay Strategic leadership at Costco focused on the flexibility leadership model that takes into account a leadership theory focuses on organizational performance. Costco case study and strategic analysis. Written by Miles Media on May 30 The mission statement of the Costco is well understood throughout the organization by the management and employees. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise. Costco: A Case Study. Misti Walker Costco: A Case Study 1 The best-cost provider strategy is a mix of low-cost provider and differentiation. Strategy The generic competitive strategy employed by Costco is that of the best-cost provider in the wholesale club category.

Skalnik Strategic Marketing Management February 20, Costco Case Study 1) 80%(5).

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