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Costco Executive Summary

883 Words4 Pages

Costco is a global membership-only warehouse that provides high-quality, branded goods to its club members at discounted prices. In Emma Koehn’s article “From meat to muffins, Costco strikes a chord with fresh food offer” on September 10, 2023, it discusses the growing appeal of Costco to Australian consumers. It highlights that Costco is not only attracting more members due to the increasing cost of living, which is pushing shoppers to seek more affordable alternatives, but also because it offers a diverse range of high quality products beyond food, including household items and electric appliances. This essay will therefore discuss how Costco explores the market and creates unique value for its large consumer groups in detail. The process of value creation involves transforming raw materials into products with distinct selling points and greater value. The primary goal is to develop unique products with distinctive …show more content…

The bakery department is also thriving, with a significant increase in the sale of items like muffins, which are not only of good quality but also more affordable compared to the market. Costco's unique market position, with its focus on reducing overheads and selling large-pack goods, has allowed it to carve out a niche since its launch in Australia in 2009. The company's financial documents for the 2022 calendar year reveal that it has become a significant player in the retail sector, with annual sales reaching $3.7 billion, surpassing retailers like Myer. Costco's business model features a membership-only warehouse club, which significantly reduces operating costs through selected products, bulk sales, and a well-established logistics system. It mainly relies on membership fees for profit. This model has positioned Costco uniquely in the global retail industry, leading to continuous growth and

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The products sold by Costco are Appliances, Electronics, Essentials, Furnitures, Kirkland signature, Food storage and Disposables, Clothing and Laundry products, Water and Beverages etc. In the UK, Costco works differently because of its plenty of brands, Costco sets a feature in the UK. Costco is not very popular among UK people (Kalyn, 2023) as compared to the USA because of other brands and other sites in the UK such as Johnlewis.com, argos.co.uk, very.co. Uk, Walmart.com. In UK, the membership cost to join Costco is lower than USA, but that is not for everyone because, for joining the Costco in the UK, Customers should have to be a registered business, be VAT registered, be certain profession such as teacher, front-line worker, lawyer or accountant (Walker, 2022).

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