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Costco Inc Membership Warehouse

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Question 1
Costco is a membership warehouse and committed to bringing members low prices, and quality name brand merchandise. The first Costco was established in July 1976 by a man named Sol Price and his son Robert Price. Costco was a price club before it extended into a warehouse. Nevertheless, the Costco Inc became the number warehouse retailer in the United States building relationships with customer and showing true dedication. Costco does not spend a great deal of money in marketing it is usually through word of mouth. Their customers spread the word because of excellent client service and a quality product they receive with Costco. In the text, it stated 80% of customers annually reports show that customers express their positive experience …show more content…

However, in 1983 in Seattle, Washington Costco was the first warehouse open, and in six years, Costco sales grew from zero to three billion dollars. However, Costco limits price markups on product up to 14% the strategy was too limited price markup was to be sensitive to customers and focus on profit maximize among the most loyal customers was more profitable. In, 2010 In 2015, Costco has maintained the fourth largest (698), retail warehouse in the United States. Costco has 573 warehouses in ninety states. It remains the fastest growing industry in the United States and has the largest membership that has over 81 million members in 2010 (Courtemanche & …show more content…

Nevertheless, an external customer includes everyone. According to this week's text, the connection process several names such as client, patients, passengers, patrons, members, associates, users, buyer, these are the people. The internal customers involve employees inside the business, and without them, the business would not be a success. When employees receive benefit packages to show appreciating the company turnover is not as high as some grocery stores industries. Most of all because of less turnover in the company on that point is less money spent training new hires, and it boosts productivity. Costco requires excellence in the workplace and demonstrates their appreciation given employees fair wages and upright benefits. Being in the workforce when employees feel valuable it helps the business internally and externally (Timm,2014, p. 15). Acknowledging employee’s talent is a way to strengthen the workplace allowing the employees to feel they are relevant to the company. Sending employees to conferences coming back new ideas encourages the employees to work to their full potential. When organization building relationships and communicating with an employee and give employees incentives I believe that would perform better in the workplace. On the external level

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According to the statistics in 2015 Costco made 116.2 billion compared to Sam’s Club 57 billion. How is it possible that Costco is beating Walmart and Sam’s Club? Costco has 671 stores and Sam’s Club has 647 but one Costco store makes double what one Sam’s Club makes in revenue a year. Costco pays their employees better than Sam’s Club for example a cashier will start off at 13/hour compared to Sam’s Club at 9/hour this alone will create a better work culture.

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“Today, Home Depot is the world’s largest domestic improvement retailer with almost 400,000 orange-blooded associates and it operates via approximately 2,278 stores, such as 1,977 inside the U.S.A., inclusive of the Commonwealth of Puerto Rico, the US Virgin Islands, Guam; 182 in Canada; and 119 in Mexico. “Home Depot,

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Costco Wholesale Corporation strives to grow and expand through their competitive retail and pricing strategies in their market. As a retail firm, Costco depends on cusumer purchasing capacities (Gregory 2015). Costco offers a limited number of items that are afforadable quality services and goods to their consumers and believes it aids to their continued growing and expanding success. Costco is driven by cost leadership for their retailer store because they would rather maintain the lowest prices possible which enable customers to return. Costco largely relies on their pricing and retail strategy to continue sales and organization success.

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Internal factors happen inside an organisation the staff are likely to have direct control over it. External factors happen outside the organisation and are less likely to have a direct control over it. The businesses reputation or image may affect a business internally as a customer may have suffered poor customer service and this would have a negative influence on the business. Just as exceptional customer service would have a positive affect on the business, Other internal inlfuences on an organisation would be staff changes or issues. Staff within one grouping may not work well together so staff may have to be moved around or staff changes due to promotion etc.

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PRICE CLUB and COSTCO more than the current market for the merger of the two stores. PRICE CLUB for the world's first member of the wholesale and retail stores, was founded in 1976 in San Diego, California, initially to serve small businesses, and later to serve the wider consumer masses, they are open for a group of each purchase , And the first COSTCO stores in 1983, was established in Seattle, Washington, in its business just six years, the annual turnover from 0 to grow to 3 billion US dollars. The two companies merged in 1993 to become PRICECOSTCO and in 1998 they changed their name from Pleasant to Costco Company

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In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international

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Costco does not have an effective social media marketing strategy. Despite using some social media tools such as Facebook, Twitter etc., Costco has a severe lack of presence in the social media world due to an ineffective strategy or lack thereof. Their Facebook page gives very little information about any events or offers available and often directs customers to Costco.com in order to get any proper information about their products. Poor use of social media as an effective form of advertisement has seriously reduced their potential customer base. They need to develop a marketing strategy that can incorporate social media for use in marketing and

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Walmart stores is one of the largest retailers not only in the United States but across the world. They hold tremendous power from a retail level and on a political level with governments in the US and outside. Ratios help create Walmart as a company and allows investors to be able to gauge and understand the metrics of the organization. These metrics and ratios help investors understand the specific direction of the company and the effectiveness of executive leadership. The primary ratio that must be understood regarding Walmart's earnings-per-share is the price earnings ratio.

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Market Segmentation: To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics, it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business and targets the middle- to high-end consumer with its private label brand Kirkland Signature.

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Amazon is number one in competing Walmart especially in online retailer and now opining fiscal stores starting with Amazon Campus store in 2015, available at several college campuses in US the Amazon Campus stores serve as a central hub where student retrieve deliveries from lockers and drop off returns, all free of charge. Over the past three years, while Walmart’s sales grew by 8.6 %, revenue at Amazon has nearly doubled. Then, Costco is also major competitor to Walmart, particularly to Sam’s because of its low price.

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These may be internal as well as external, the external ones particularly hard to gauge and hence their impact on the product or the organization comparatively uncertain to

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