Costco’s product selection criteria are value, sales potential and product expansion categories and price (Hill et al., 2015). Costco limits specific items in each product line for fast selling (Hill et al., 2015).Ĭostco has direct manufactures thru which Costco purchases it’s all merchandise directly and reallocate goods from the respective depot. Operating efficiency, efficient distribution and warehouse facilities collectively generate profit over a lower gross margin than any other traditional wholesalers or supermarkets. Costco offers low prices on nationally branded and privately labeled products which in return produce high sales volume and massive turnover. According to Costco has a huge profit in 2019.Ĭostco’s strategy is to provide a variety of high quality of products at the consistently lower prices than any of its competitors offer (Hill et al., 2015). Under the symbol of “COST”, Costco Wholesale Corporation trades on NASDAQ global select market Hill, C., Schilling, Melissa A., author, & Jones, Gareth R., 2015). It offers exclusive product categories such as supplies, confectionaries, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewellery, watches, cameras, books, housewares, apparel, health and beauty aids, furniture, office supplies and office equipment (Costco Company Profile, 2019). It is the second-largest retailer in the United States and the seventh-largest retailer in the world. Costco Wholesale Corporation provides a wide range of merchandise, it is mainly membership-only warehouse club. Gradually Costco merged with The Price Company, which had pioneered the membership warehouse concept. Company Background:Ĭostco Wholesale Corporation is an international chain of warehouses, began its operation in 1983 in Seattle, Washington (Costco Company Profile, 2019). Finally suggesting our commended strategic for Costco wholesale corporation to the instrument. The contemporary strategic issue made by Costco also particularized in this article alongside alternate strategies of that organization elucidate. Porter’s five forces also labeled along with Costco. Costco external factor and internal factor also considered as in SWOT analysis to have insight about power and softness. Followed with Costco background also expounded with competitive analysis. In this report, Costco wholesale corporation is chosen and to discuss its strategic approach in the retail industry. Retailing industry becomes more globally however it has to compete with the domestic market as well (Minahan, et al., 2012). Effectiveness of organization in sense of performance is determined by an optimum strategic proposal of top management (Baroto, Abdullah, & Wan, 2012). In the modern era of a competitive domain of business sustain in market because of the finest strategic plan of an individual organization. Wal-Mart is the largest retailing company according to 2008 sales and Costco is progressively growing for the last twenty-six years with business in seven countries (Corona, 2012). Wal-Mart and Target are the foremost players in retail industries. Costco Wholesale Corporation has a major market share in the retail industry and their rivalries are Target, Wal-Mart, and Sears (Corona, 2012). Costco Wholesale Corporation is an international chain of warehouses, began its operation in 1983 in Seattle, Washington (Costco Company Profile, 2019).
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