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Costco Warehouse Case

654 Words3 Pages

Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise. With hundreds of locations worldwide, Costco provides a wide selection of merchandise, plus the convenience of specialty departments and exclusive member services, all designed to make your shopping experience a pleasurable one (About). Costco Wholesale is a multi-billion dollar global retailer with warehouse club. Despite the large size and explosive international expansion, Costco continue to provide a family atmosphere in which employees thrive and succeed.
The company's first location, opened in 1976 under the Price Club name, was in a converted airplane hangar on Morena Boulevard in San Diego. Originally serving only small businesses, the company found it could achieve far greater buying clout by also serving a selected audience of non-business members. With that change, the growth of the warehouse club industry was off and running and productivity was off the roof. Productivity is an economic measure of efficiency that summarizes and reflects the value of the outputs created by an individual, organization, industry, or economic system relative to the value of the inputs used to create them (DeNisi, 13). In 1983, the first Costco warehouse …show more content…

Second is Costco attracts a more affluent customers than Sam’s Club, making it less vulnerable to pull back by consumers when the economy slows (Costco). Costco weakness is high geographic concentration of stores (30% of sales comes from in California)(Costco). Costco opportunities are E-commerce only generates 3% of its total sales so a big push here could win some business away from the likes of amazon and Sam’s Club. The threats are Sam’s Club has been aggressively expanding its service to business members and has planned to improve its private label brands

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