ipl-logo

Who Is What Attracted Us To Costco

748 Words3 Pages

What attracted us to Costco was that it has a strong membership group, which translates into loyal shoppers. The company also has a strong brand that customers know and feel like they get great value at a low price. Continually growing in net sales and net income despite a very competitive market. Our idea that attracts us to Costco is what they don’t have and are not known for is smaller stores that still give customers great value in smaller packs along with customer service which Costco is not known for. In regards to customer service we feel there is nowhere to go but up and we feel Costco has the financial means to build these stores and create a simple service program that customers will recognize immediately versus their …show more content…

Costco excels by having fewer choices to choose from and focusing on volume translating into lower prices for customers. Costco supply chain efficiency is industry leading. An integral component of Costco’s supply chain efficiency is the cross-dock distribution (depot) facility. Meaning that Costco purchases straight from the manufacturer and then has the merchandise transported to a cross-dock warehouse that will then truck to the stores. In addition Costco believes in paying its employees a higher wage because that equals happier employees who take their work seriously. Higher wages also mean that Costco will employ a higher quality employee from the preexisting pool of candidates that retail chains compete …show more content…

They do not have as many stores meaning that the average store approximately receives 100 million dollars a year in sales. Costco focuses on selling in bulks with larger sized quantities and focuses less on everyday goods. Doing this means they are able to increase the volume of particular items and keep prices low. In addition, Costco has perfected a purchasing strategy known as the “treasure hunt” which refers to new incoming items and deals that spontaneously come and

Show More
Related
672 Words | 3 Pages

Costco and Sam's Club Introduction There are so many stores where people can get their groceries and basic needs. Where do you get your groceries from? Out of all the stores Costco and Sam's Club are the mainstream ones with a variety of products. Costco and Sam's Club share many similarities and differences when it comes to their membership, environment/food court, and customer service/experience. Membership Costco and Sam's Club both offer memberships and to shop in the stores or online you must have a membership.

Read More
288 Words | 2 Pages

Exclusivity to members: As we all know, Costco are the membership system. This system allows exclusivity to members, and exclude other shoppers. It restricts the shoppers shop easily. Even there are more than 81.3 million cardholders, not everyone has the cards. For example, there are many tour groups come to California, especially Chinese tour groups.

Read More
624 Words | 3 Pages

The short answer to this common question is yes. Costco sells food and drinks, health and beauty products, clothing and accessories, jewelry, toys, furniture and home goods, and even electronics and appliances. Because many of these products come in bulk sizes, Costco offers great savings in addition to high quality. This warehouse club offers deals on many national and regional name brands online and in its warehouses. Additionally, this retailer sells its Kirkland Signature products.

Read More
872 Words | 4 Pages

Once it take place on one location, Costco could analyze the new store volume and how many memberships purchased. By comparing the operating costs and logistics, Costco will determine if it is good to start in major cities and in urban areas. For this kind of small convenience stores it is critical to generate fast inventory turnover just as regular warehouses do. Starting these types of stores also making a rival competition from Walmart and target that they have opened in urban areas. Costco is to continue to grow more and more.

Read More
539 Words | 3 Pages

The strategic limitations which are often faced by membership clubs such as Costco, Sam’s Club and BJ’s wholesale club include, aggressive marketing of other retail firms, a limit to the total number of customers by being membership-only clubs and warehouses, and the increasing growth of internet retailers. Although these membership clubs do face a few limitations, each club offers a plethora of benefits which significantly outweigh the limitations they face. For example, Costco’s competitor Walmart may implement a variety of marketing advertisements for name brand paper towels such as Brawny, Bounty, and Viva, but consumers say Costco’s house brand, Kirkland, is just as good if not better than name-brand competitors and is offered at great prices. With this, aggressive marketing may have the potential of limiting some customer decisions to choose non-membership retailers over membership clubs; however,

Read More
208 Words | 1 Pages

Costco needs to try enter new markets, such as markets in developing Asian countries. Costco also needs to expand the coverage of its e-commerce websites because currently it offers online services to the United States, Canada, United Kingdom, Australia, Mexico, Taiwan, South Korea, Japan, and Spain, (Gregory, 2017). Costco also needs to increase the variety of its goods and services to improve the attractiveness stores to a more diverse population of consumers, (NerdyRoo, 2021) Costco should conduct continuous market research which should also consider the consumers and competitors. Costco needs to do more online marketing and selling because by expanding its reach, by doing so this would make the barriers of entry harder to overcome and eliminate

Read More
2581 Words | 11 Pages

It has a large network of business through the US and many other regions. These procedures are large scale procedures which occasionally delays the implementations of changes to bottom levels. It has huge stores for already aged markets in the US. Secondly, Costco does little or no proper advertising that means that the corporation is not receiving customers that it should have receive. Costco has very limited emphasis on its stores and the areas it covers.

Read More
381 Words | 2 Pages

By the way Costco is where I do 85% of my grocery shopping, because when I go grocery shopping its for 2-3 weeks at a time, so buying in bulk is great for my household. Dinner: I will be honest and I have not eaten dinner yet tonight. I am so undecided of what I want to have. I have had a banana tonight so far. I am thinking that I will have a turkey burger tonight.

Read More
1161 Words | 5 Pages

Abstract Motivation is the process through which people are stimulated to increase their actions and performances to accomplish the set goals for an organization or a company. Costco, a retail store created a culture that motivates its employee to keep coming back to work. The stimulating key factors for Costco employees are desire for getting more pay, opportunities for promotion, ability to be treated with respect by the headship of the company as family, and recognition by the customers to provide good customer service at low price. This paper has not only discussed the strongest motivational factors for Costco employee, but it equally suggested another motivational system that can allow employees to select their valued benefits from a list

Read More
2720 Words | 11 Pages

It has many inflows of profit from all of its stores that it can rely on. Currently, Costco is way ahead of its competitors globally. BJ 's Wholesale and Sam’s Club are its two main competitors. However, BJ 's Wholesale does not operate any stores outside of the United States; and Sam 's Club, which is owned by Wal-Mart, only has stores in three foreign countries (Costco’s

Read More
307 Words | 2 Pages

Costco has the opportunity to make developments on its private brand, Signature Kirkland brand. Adding more products and the commitment to quality is precious to the business. The Costco warehouse carries over 4000 SKU items which are minimal to grocery stores carrying over 30,000 (Caplinger, D. 2016). Costco has a limited selection of products that contributes to keep the cost low, and aiding in extensive savings onto the customers. Implementing a merger or expanding in new developing locations internationally, such as Mexico, that has a stable political structure and tax exemptions, will increase revenue.

Read More
793 Words | 4 Pages

Wal-Mart 2. Stores Sam Club 3. BJ wholesale • COMPETITIVE STRENGTH- ADVANTAGES • Costco right now has a slim competitive advantage over some competitors • Pricing–Costco philosophy was to keep customers coming in to shop by wowing them with low prices • Product-Costco merchandising range of 3,600 of broad spectrum • Low cost emphasis-Keeping operating cost at a bare minimum was a major element of Costco’s strategy a key to its low pricing • With over 30% of members having annual incomes of 100,000 or more • They have a great buying market relationship with many producers of the national brand • Costco volume ran about $4 million to $7million a week • CONCLUSIONS DRAWN FROM ANALYSIS • Offer low prices to attract members and provide them with considerable cost saving • Household and business can switch, switching costs are low • Costco must Obey the law to conduct the business in total compliance with the laws of every community • Costco membership is open to business owners as well as to individuals.

Read More
1823 Words | 8 Pages

Walmart asks suppliers to offer their products at very low prices and most suppliers comply. Otherwise, Walmart would not sell their products. Knowledge-based Capital The premise that price drives sales volume has been core to the Walmart’s productivity loop. As it repeats and whips, the inputs grow in multiples and in exponential terms than mere addition.

Read More
1431 Words | 6 Pages

They have done so by consistently outperforming other “industry giants” like Walmart and Target by providing high-quality products to customers at lower prices. They maximized the return on a number of factors such as pricing, store layout and design, store locations, advertising and marketing philosophies and more. According to Jim Sinegal, in the end, it boils down to just treating people right and providing a consistently good quality product at an affordable price. Because of their ability to make the best use of these key factors, they have built themselves into a successful company with a global

Read More
735 Words | 3 Pages

Distribution centers are the foundation of a supply network. They supply products to many of their stores, helping to stock a variety of products that certain stores are not selling. Instead of sending them straight to the store, the distribution center can stock many different products and send them the stores that are successful with that specific product to increase sells and eliminate losses. Another interesting fact is that while distribution centers are a huge factor in success and profit of a company, they can only lose money. Their main objective is the storage to always have products the guests want on hand, meanwhile not overloading the stores.

Read More

More about Who Is What Attracted Us To Costco

Open Document