Costco Executive Summary

While Costco maintaining their low-cost strategy, Costco has more opportunities to growth. Even though its low cost makes success during economic difficulties. Costco’s low price and bulk quantity purchase makes consumers to buy large in quantities that makes more attractive to business. For everyday consumer Costco, would start a small and convenience store for the people who want to buy quickly in small or large quantity. These small Costco store can be started in urban areas and memberships for this convenience stores can be offered with allow price by reducing ten or twenty dollars than the original cost. This allow Costco to generate more revenue and able to continue providing products in low price even in small quantity purchases. In

Once it take place on one location, Costco could analyze the new store volume and how many memberships purchased. By comparing the operating costs and logistics, Costco will determine if it is good to start in major cities and in urban areas. For this kind of small convenience stores it is critical to generate fast inventory turnover just as regular warehouses do. Starting these types of stores also making a rival competition from Walmart and target that they have opened in urban areas. Costco is to continue to grow more and more. Also, Costco to focus on expanding globally all around the world to see the company success and benefits of high growth economy. Expanding in countries will gain trust from customers and enables customers to recognize the brand names and brand

Also, Costco would benefit from the partner company as they get a lot of free advertising from company to public. By this word of mouth advertising from a reputable company, Costco would see hike in consumer interest and attract new customers with new memberships. Consumers will be more likely to Costco has offer like this and would be more inclined to return in future to take more advantage of the competitive pricing and wide variety of