Strategic Management and Costco Company
Costco Wholesale Corporation Part III Costco Wholesale Corporation is in an industry where there are several of dynamic competition from huge chains such as Wal-Mart or Sam’s Club and Target, and yet it could maintain a competitive and profitable stance. Effective strategic planning is essential part in operating any business in relation toward adapting to organizational and operational adaptation to changing markets. Through inquiries, the influence in the recent economic trends, provide strategies that have use or could use in the adaptation to changes in the market related to issues of economic trends, such as recession and economic downturn. Costco Company’s research paper will further discuss the tactics that has implemented or could implemented to achieve strategic goals and the role of human resources management in helping the company achieve its business goals. Assuming the role of a Mutual Fund Manager, using the three parts of business analysis gathered enhance my understanding the reason it is an extraordinary idea to invest in Costco Wholesale Corporation. In today’s economy, even most successful businesses, including Costco Company also suffers from the recent economic trends. Despite from the economic crisis, it is imperative for Costco Company to focus on the strategy in providing items in bulk and at low prices to give assistance in sustaining growth during the slow economic times. The successful pursuit of a low-cost strategy lets Costco charge less than its competitors and still make profits. The pricing tactic that Costco has executed focuses on the price-sensitivity of its consumers. The company has shined in keeping its prices low by capping the markup on its merchandise. Costco is precise at organizing for example, using floor space, and producing high revenues from its products within its stores. Besides a wholesale club, Costco delivered more value to customers by, including ancillary services for
References: Costco, (2010). Retrived from http://www.benchmarketproducts.com Costco Wholesale Corporation, (2012). Retrived from ateneonline.it/Thompson/docen/casi Costco Wholesale Corporation, (2012). Retrived from Costco.com Costco Wholesale, (2012). SWOT Analysis. Retrieved from http://yousigma.com/comparativeanalysis/costcowholesale.html O’Tootle, J., (2005) The Ethics of Human Capital. Retrieved from http://www.scu.edu/ethics/practicing/focusareas/business/conference/presentations/human-capital.html Retail Industry (2012). Retrived from retailindustry.about.com