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Costco's Business Model Essay

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1.0 Introduction The company that we choose is Costco Wholesale corporation. Costco is a multinational retail corporation that operates a series of membership-only warehouse clubs (Robert, 2023). Costco aims to offer its members competitive prices on a wide range of high-quality products. With numerous locations across the world, Costco provides a diverse selection of merchandise, along with specialized departments and exclusive services tailored to enhance the shopping experience for its members (Costco Wholesale, 2023).
The history of Costco:
(Encyclopedia.com, 2018), (Britannica, 2023), (Costco Wholesale, 2023)

The business model of costco shown below can be effectively used to deconstruct and analyze the Costco business model (The
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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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The type of products that Costco sell are groceries, apparel, electronics, auto and tires, computers and printers, office products, TV’s, toys, appliances, handbags, furniture, outdoor furniture, jewelry, electronics, health products, floral, and household and lawn items. They also offer different services, which includes, Photo Center, Pharmacy, Optical, Gasoline, and Home and Life services • Place: Costco warehouse stores is typically where they sell their products at. Also, Costco distributes its products on their online website, and on their mobile app, as well • Promotion: Costco warehouse is a membership only club, so it offers instant savings on some of their products on-line, and in-store. Also, Costco offers its customer free samples, it has caused an increase of sales within their company.

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