Costco Wholesale Corporation is an international membership warehouse that brings low prices, best quality and a wide selection of products to their customers. Costco began operation in 1983 and has successfully thrived in the past thirty years. The company has had some weakness, and threats throughout the years, but has many strengths as well as opportunities for the company. Costco’s liquidity and efficiency, solvency, profitability and market prospects show the problems and success the company has achieved. The company’s liquidity and efficiency show how well Costco is using their assets and resources to meet short-term cash requirements.
Delivery Options. Nordstrom offers customers the option to buy online, taking advantage of the e-commerce aspect, and then pick up their order in stores or have it delivered.22 Inventory Visibility. Nordstrom has gone through an inventory management overhaul, which has increased their cross-channel inventory visibility in stores.23 Supply Chain Software. Nordstrom has recently invested a minority stake in Dsco, a supply chain software.
Infrastructure The infrastructure of Macy’s is very strong due to the management team. Macy’s has been divided into four separate divisions. Mississippi, Iowa, Arkansas, Alaska and Nebraska are the only states that do not have a Macy’s. In 2006, Macy’s was spread out into four different geographic divisions; East, Central, West, and Florida.
This reduced the company’s inventory costs by over 20% which improved delivery
This new process represented a major change in channel ordering and logistics and established the basic principles of CRP. In order to improve logistics in the channel, P&G began shipping products based on retail demand data, placing orders automatically for the retailer. Second, P&G rewrote their OBS.A key element of the new ordering process was the development of common databases for product, pricing and policy specifications. The common databases developed to support simplified pricing, were designed to provide data directly to the customer 's own system electronically. Third, P&G moved from Brand to Category Management.
Coffee: 17. Who did Europeans get coffee from and how did it spread to Europe? The European got coffee from the Arab world since it originates in Yemen. During the seventeen-century Europeans visiting the Arab world were astonished by the popularity of coffee. Coffee spread through European powers starting with Britain that then moved to France, Germany and Holland.
Also, product handling related defects are reduced due to the lower number of product handlings for non-value adding
We at Costco offer our customers a national brand, and also provides products exported abroad. In addition, we offer a wide range of product lines also offer such products in six categories: sundries, Hardlines, food, smooth lines, fresh and auxiliary food. We also provide other services including gas stations, pharmacies, food court, optical, travel. Much of our consumer product we sell here are for sale only in quantities case, carton, or
This is because customers in actual sense undertake the tasks that would usually be done by the supply side. Figure 5: Pull and Push
But with the changing tastes of consumers, it has expanded its menu which now includes salads, fish, wraps, smoothies, fruits and seasoned fries. The Coca-Cola Company, makers of coke, sprite, fanta, diet coke, coca-cola zero etc. The coca-cola company operates/sells beverages in more than 200 countries around the world. The most popular and selling drink of the company around the world is coke.
Among them, coca cola’s products are generally made available through intensive distribution. Intensive distribution for the newest product has allowed to maximize contact with customers and become very successful. It usually goes with heavy promotion, lower prices and large target market. Coca cola’s product are mainly distributed in a wide variety of locations including corner stores, convenience stores, restaurants, hotels, shopping mall petrol station and many, many
The high cost of operating in this industry prevents many companies from entering the competitive arena. Last, these two companies engage in non-price product differentiation. Rarely will you see Pepsi attempt to undercut Coca-Cola in price. Instead, you see these companies use creative advertisements to compete (Neary
Coca Cola was first introduced by John Styth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.
By using low-cost incremental technology that software applied to inventory control, order selection, short interval scheduling as well as sales forecasting. Company have managed to reduce their inventory levels through just-in-time system, electronic direct interchange (EDI) and extranet enabling retailer and supplier to be in constant touch. Electronic warehousing systems are used for the storage of information. (Marketing policy, planning and communication) For any changes which may occur, the company must be ready to adapt by having IT department that will handles all the technological issues.
