Costco Executive Summary
Executive Summary This research will further explore the unique decisions top management has made throughout the years at Costco Wholesale to become a leader and has been able to maintain their goals and the importance of how good customer service and consistency of high quality products improve sales and boosts sales.
Problem Statement Analyze the facts that brought Costco to their leader position in the market and how it has become successful throughout the years.
Background
The company started in 1976 in San Diego, California as a store called Price Club, loosing almost 750,000 in their first years of operations. By 1979 and two locations, the store became profitable and in 1983 Jeff Bortman and Jim Sinegal founded the first …show more content…
Costco has grown international in 6 countries and expanded into 37 states in the USA, studying the locations of the stores in detail taking into consideration regions where there is a large number of small business owners and professionals with higher income that reach for high end goods. In the past few years, Costco introduced new services to provide more benefits to its members: Optical laboratories, pharmacy services and gas stations with lower prices than conventional ones. Costco has grown international in 6 countries and expanded into 37 states in the USA, studying the locations of the stores in detail taking into consideration regions where there is a large number of small business owners and professionals with higher income that reach for high end goods.
A SWOT Analysis shows the Strengths, Weaknesses, Opportunities and possible Threats inside a company. This Analysis gives an organization a comprehensive visual of these four categories simultaneously. Through diagramming the strengths, weaknesses, opportunities, and threats, a visual breakdown of the organization is developed. From there, relationships between items in different categories can be assessed and recommendations made. (Marshall, G. & Johnston M, …show more content…
Implementing Internet and social media campaigns has been working successfully nowadays, and one advantage Costco has is the fact that they have a loyal well-based customer base that can be reached easily through emails. Using also customer based metrics opportunities to target new potential customers could be beneficial to expand their number of memberships.
Increase their online sales that would keep their warehouse operating costs minimum and markups would not be compromised. Costco has two factors that could jeopardize their performance: the first is that they try to keep operating costs as low as possible so that prices are not affected and they can keep markups minimum to reach the lowest prices in the market. These two factors combined can be targeted through internet sales and shipping directly to their customers
Problem Statement Analyze the facts that brought Costco to their leader position in the market and how it has become successful throughout the years.
Background
The company started in 1976 in San Diego, California as a store called Price Club, loosing almost 750,000 in their first years of operations. By 1979 and two locations, the store became profitable and in 1983 Jeff Bortman and Jim Sinegal founded the first …show more content…
Costco has grown international in 6 countries and expanded into 37 states in the USA, studying the locations of the stores in detail taking into consideration regions where there is a large number of small business owners and professionals with higher income that reach for high end goods. In the past few years, Costco introduced new services to provide more benefits to its members: Optical laboratories, pharmacy services and gas stations with lower prices than conventional ones. Costco has grown international in 6 countries and expanded into 37 states in the USA, studying the locations of the stores in detail taking into consideration regions where there is a large number of small business owners and professionals with higher income that reach for high end goods.
A SWOT Analysis shows the Strengths, Weaknesses, Opportunities and possible Threats inside a company. This Analysis gives an organization a comprehensive visual of these four categories simultaneously. Through diagramming the strengths, weaknesses, opportunities, and threats, a visual breakdown of the organization is developed. From there, relationships between items in different categories can be assessed and recommendations made. (Marshall, G. & Johnston M, …show more content…
Implementing Internet and social media campaigns has been working successfully nowadays, and one advantage Costco has is the fact that they have a loyal well-based customer base that can be reached easily through emails. Using also customer based metrics opportunities to target new potential customers could be beneficial to expand their number of memberships.
Increase their online sales that would keep their warehouse operating costs minimum and markups would not be compromised. Costco has two factors that could jeopardize their performance: the first is that they try to keep operating costs as low as possible so that prices are not affected and they can keep markups minimum to reach the lowest prices in the market. These two factors combined can be targeted through internet sales and shipping directly to their customers