Costco opened the first club in 1976 in San Diego. After several years, it opened the first Costco warehouse in Seattle. From $0 to $3 billion sales, it just spent less than six years (Costco, 2016). This shows the basic framework has been created.
Now Costco is a bright star in the field of retail industry. Until the 2016, it has spread to United State, Canada, Mexico, United Kingdom, Japan, South Korea, Taiwan, Australia, and Spain. Over 705 warehouses around world. Ended in August 30, 2015, the total sales were $113.67 billion (Costco, 2016). For analysis Costco business, SWOT Analysis could be a main tool.
The Business
The successful business benefits from their strategy. Diversify products and low price strategy are main reasons which can attract customer constantly.
The business of Costco includes food (dry and packaged), sundries (tobacco, beverages,
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As the leader of America retailer industry, it has been the trend of customers shopping. The company’s name become popular among customers and presence of Costco is stronger than others. For example, they are trying to expand their digital presence (Puget Sound Business Journal, 2014).
Expansive supply chain: This aspect will express the ability to relate with firms, it will expand the scale of business. Diversity products need more supply chain, we can find that there are 14 categories in their website. Every category has more than 8 projects, in general, there are more than 112 kinds of products and thousands of brand in this market (Costco, 2016). It needs a huge supply chain to support it. But the expensive supply chain bring more benefit, diversity products make more customers. This strength is the special item than other