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Advantages And Disadvantages Of Costco

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• Efficient staff
• Promote from within whenever possible (98%)
• Resources to execute crafted strategy
• Contributory Offerings-Optical, gas station, pharmacy
• Explicit policies and standard operating procedures
• Organization of work effort and workflow
• Information and operating systems-Relevant reporting of data
• Motivation and Rewards-Bonuses
• Corporate and company culture success by word of mouth
• Internal leadership at the branch level
• Evaluating Performance and Initiating Corrective Adjustments
• Added more membership options to augment sales growth
• Added contributory profit centers to increase consumer repeat trips to store
• Added website sales to highlight higher end offering private label
• Observations and/or examples
• Costco created and stuck to a …show more content…

Wal-Mart 2. Stores Sam Club 3. BJ wholesale
• COMPETITIVE STRENGTH- ADVANTAGES
• Costco right now has a slim competitive advantage over some competitors
• Pricing–Costco philosophy was to keep customers coming in to shop by wowing them with low prices
• Product-Costco merchandising range of 3,600 of broad spectrum
• Low cost emphasis-Keeping operating cost at a bare minimum was a major element of Costco’s strategy a key to its low pricing
• With over 30% of members having annual incomes of 100,000 or more
• They have a great buying market relationship with many producers of the national brand
• Costco volume ran about $4 million to $7million a week
• CONCLUSIONS DRAWN FROM ANALYSIS
• Offer low prices to attract members and provide them with considerable cost saving
• Household and business can switch, switching costs are low
• Costco must Obey the law to conduct the business in total compliance with the laws of every community
• Costco membership is open to business owners as well as to individuals. Our members are our reason for being the key to success.
• Respects our suppliers are our partners in business and for us to prosper as a company they must prosper with

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