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. Their current market situation and competitive strategy highlights aspects that Costco has implemented in the organization to increase sales and …show more content…
Costco's focus on driving sales also helps explain why it offers better pay and benefits than competitors (Luts 2014). The organization attempts to retain employees while trying to grow sales and increase consumers but they recognize the need to compensate their employees properly. Costco members know that the warehouse store has consistently lower prices when compared to traditional grocery stores. While other stores may have occasionally lower prices on their loss leaders, Costco has permanently capped its margins to ensure that members can justify paying for a membership. The word average is important in that explanation. Costco has its own brand, Kirkland Signature, that does surprisingly well for a store brand. This label, obviously, earns a higher profit as there are less middlemen involved and Costco can charge a higher mark-up to account for its lower cost of obtaining the products (Page 2015). The various pricing strategies Costco offers, allows consumers to recognize discounted prices for respected brands and items and return to the chain