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Critical Analysis Of Costco

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Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia. There is clearly room for further expansion into these regions as well as the opportunity for massive expansion into China and India. When Costco enters another country it does everything in its power …show more content…

Costco does not have an effective social media marketing strategy. Despite using some social media tools such as Facebook, Twitter etc., Costco has a severe lack of presence in the social media world due to an ineffective strategy or lack thereof. Their Facebook page gives very little information about any events or offers available and often directs customers to Costco.com in order to get any proper information about their products. Poor use of social media as an effective form of advertisement has seriously reduced their potential customer base. They need to develop a marketing strategy that can incorporate social media for use in marketing and …show more content…

It is a good way to market and to find out ones target market and is one of the only ways to communicate directly with potential customers. These personal interactions help to build brand loyalty among customers. Costco would also be able to see what customers are saying about their products and find inspiration for new ideas or improvements that would otherwise be missed. With over 600 million active users, Facebook can be used to communicate with a massive audience of potential customers. Costco could use their Facebook page to advertise their products, introduce new products, keep customers up to date on sales and other in-store events coming up. Facebook, Twitter and Youtube are currently the top social media sites businesses use. The benefits to using any type of social media are that many of them are free to use, have a large audience, allows interactions with customers which can improve customer satisfaction and increases traffic to the company’s website. Costco using any of these types of social media networks would be greatly beneficial for their company if they are performed in a professional

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According to the statistics in 2015 Costco made 116.2 billion compared to Sam’s Club 57 billion. How is it possible that Costco is beating Walmart and Sam’s Club? Costco has 671 stores and Sam’s Club has 647 but one Costco store makes double what one Sam’s Club makes in revenue a year. Costco pays their employees better than Sam’s Club for example a cashier will start off at 13/hour compared to Sam’s Club at 9/hour this alone will create a better work culture.

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Executive Summary Costco is a private company in australia and the customers have to have a membership to shop in any of the store all across the world with over 700 stores About Costco Costco is a whole sale corporate that started in Seattle and come over from America as they have saturated the market over there. They have now got 9 stores in Australia and has 2 upcoming stores to be opened in the soon future. The founders of Costco are James Sinegal and Jeffery H Brotman Costco’ Business Structure Size & Location After opening their first store in 2009 with in 9 years the 8 more stores have opened in NSW, QLD, ACT, SA, VIC in Australia and the sales is over $1 billion per annum.

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The application of social media is one of the technological factors that have led to the growth of the organization. The company has now turned to the use of the internet to conduct its marketing activities. The company also banks on mobile technology to reach more

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Marketing Plan: Social Media Social media, in today’s business world, represents a vital role in how consumers research, learn about, make decisions, and share information about products and services. Studies show that about 60 percent of consumers’ research before buying through multiple sources online and learn about specific brands or retailers through social media sites. (Hazan, & Wagener, 2013). The emergence of the vast social media sites gives businesses an extensive marketing audience in building brand awareness over the web.

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Over the last few years, Costco has seen an exponential increase in the number of new memberships. While the Costco gained 2.3 million memberships in the financial year of 2009. Greater than 4 million customers signed up in the financial year of 2011. The Costco’s membership base saw a rise of 3 million in the financial year of 2012 and another 4.2 million in 2013. The strong exponential growth in the memberships continued in 2014 as well.

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Their current market situation and competitive strategy highlights aspects that Costco has implemented in the organization to increase sales and

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As of 2023, Costco has 850 total warehouses with 158 of them being outside of the United States and Canada (Costco, 2023). Costco is able to scale partially because of their hiring and product selection, but also because they slowly build up their store counts in the same countries over the years by capitalizing and adjusting to each countries cultures and catering to it. For instance, Costco entered Japan in the 1990’s and they currently have 31 stores their which is the most outside of North America (Costco, 2023). This is due to their growth strategy (Parnell, 2014).

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Expanding to Asian markets would be a fantastic chance as these consoles have yet to launch in some of these regions(X-box One doesn't launch in China until September 29th). It could grow in number of stores so as to cater more demands of Customers. More gamers are inevitable as the gaming market grows and opening more stores in places will indeed help cater the increasing demands for gaming products with the recent release the PS4/ Xbox-One

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Facebook is also used to raise the awareness of their brand. Business to a greater extent uses Facebook's marketing tools to expand. For example, through advertisement and also via pages, businesses can efficiently obtain and retain customers and also raise their brand awareness. In contrast, people can use facebook to discover new companies and also brands or they can also connect with business that they have already know. Facebook's marketing tools are ready for use everywhere.

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