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Costco Swot Analysis Essay

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The SWOTT analysis table below provides the summary of internal and external analysis findings of Costco’s new division.
Factor Trend Threat Weakness Opportunity Strength
Technological The online shopping for food is becoming popular. The small start-up food industries may develop superior food products and capture the food market share. Costco has been affected by large food production companies such McDonald’s food. Costco offers online shopping will allow it to have a bigger market. The use of the robot and online shopping.
Economic Economic situations are recovering all over the world. Unanticipated economic changes may lead to losses. Customers may buy alternative food products. Expands its market share in other countries such as China. The better global economy would increase the target market.
Legal and regulatory New rules are …show more content…

Incapability to keep employees’ happiness may result in job displeasure. The employees’ happiness and culture lag behind other food companies. Enhancing the cooperate’s culture to aid in attracting quality human resource. Costco has created a culture that satisfies the customer’s the needs first.
Leadership Costco’s leadership team is stable and well remunerated. Losing important members of the management team would impact negatively on the strategic plan. The founder of the Costco does not have a managerial duty. Costco employs individuals who can help in delivering what consumers want. Costco has a reputable leadership team with vast experiences.
Resources Costco has a steady cash flow and dynamic capital structure. Poor conducting of projects may result in a reduction of available capital. The Costco’s employees may choose to work in other companies. Costco constantly improves benefits to capture the best employees. Costco has established a high network of capital and resources.
Table 1: SWOTT analysis

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