Swot Analysis Of Costco
Membership:
Costco’s business model is also said as a subscription business model –which states that customers who want to shop at the store must buy a membership (currently $55 in the U.S.) with the promise of lower prices to make up for the initial cost. Costco wasn’t the first company to implement this business model companies like newspapers, gyms and telecommunication also earn their money from subscriptions.
Consistently low Price:
Costco members know that the warehouse store has consistently lower prices when compared to traditional grocery stores. While other stores may have occasionally lower prices on their loss leaders, Costco has permanently round off its margins to ensure that members can be satisfied paying for a membership.
Costco’s business model is also said as a subscription business model –which states that customers who want to shop at the store must buy a membership (currently $55 in the U.S.) with the promise of lower prices to make up for the initial cost. Costco wasn’t the first company to implement this business model companies like newspapers, gyms and telecommunication also earn their money from subscriptions.
Consistently low Price:
Costco members know that the warehouse store has consistently lower prices when compared to traditional grocery stores. While other stores may have occasionally lower prices on their loss leaders, Costco has permanently round off its margins to ensure that members can be satisfied paying for a membership.