Costco swot analysis 2012

WMT Costco's employees are among some of the happiest around, as they receive some of the highest paychecks and best medical insurance, which is why the company has one of the lowest turnover rates in the industry.

Also, the company needs to globally expand to exploit the benefits of high-growth economies. Customers might go to other retailers like Walmart, which has a wider array of goods and services.

Membership fee contributed 2. Weaknesses The major concern for Costco is that there are not enough warehouses to meet its demand. Pressure from these companies will likely prevent Costco from raising prices too much, for fear of losing business.

The company is much more exclusive than most stores, and doesn't do enough to rake in new customers through ads and promotional events. The intensive marketing by other retailers dealing in similar products as Costco is yet another threat that the company needs to challenge in order to avoid being edged out.

Its competitive prices is a key strength that has kept the business afloat for long. The SWOT analysis examines the internal strategic factors strengths and weaknesses and the external strategic factors opportunities and threats relevant to the business.

AMZN has made to the industry. Brand loyalty is another strength of the company, which it has been able to attain through its constant pursuit of high quality and great value. Lower gas prices have had a mixed effect on results.

The Business Costco and its subsidiaries began operating in in Seattle, Washington. Higher operating efficiency is achieved through minimization of variable costs. You will receive a download link right in your email inbox for each of the free reports that you choose.

Costco Wholesale Corporation — Strengths Strength — Strong Financial Performance Strength — Value-Added Services Costco, being a chain of membership warehouses, offers two types of memberships for individuals, namely, Business and Gold Star Memberships, with minimal charges for their private labeled and better quality products.

Costco has a relatively low urban presence, and most customers can consider themselves lucky if a trip to one of its warehouses doesn't take up most of their day. The company also competes on a worldwide basis with global, national, and regional wholesalers and retailers, including supermarkets, supercenters, department and specialty stores, gas stations, and internet retailers.

Thus, the strategy of providing goods of high quality and diverse assortment at lower prices to its members enables the company to retain and attract a lot of customers. The increased current liability and declined current asset burdened its working capital with The weaknesses in the SWOT analysis model are the internal strategic factors that act as limitations or barriers to business.

Opportunities Attracting Younger Customers: These bring customers back to the warehouse, since they have the belief that they are in fact getting the best price on a wide array of products. The company has recently expanded in Spain, and plans to open up in France in due time.

Too, the operating efficiencies achieved by volume purchasing, along with efficient distribution and reduced handling of merchandise in a no-frills warehouse, allows the company to operate profitably at lower gross margins than traditional wholesalers, mass merchandisers, supermarkets, and supercenters.

SWOT Analysis: Costco Wholesale Corporation

As of September 2,the membership service base of the company includes Considering the majority of players and shifting trends in the retail warehousing industry, it is always advisable that a company conducts a SWOT analysis in order to determine areas of weakness that require fixing and potentialities that should be fully exploited.

This strategy entails maintaining the lowest prices possible. In terms of equity, the wholesaler only has a The Sundry category consists of different products such as candy, snack foods, tobacco, alcoholic and non-alcoholic beverages; and cleaning and institutional supplies.

While Costco has a fairly broad customer base, it is more skewed toward older baby boomers. Threats The warehouse services industry is one which is quite competitive, considering the high number of players involved offering similar process, quality and selection.

While competition in the market remains fierce, we think management is taking the right steps to lead the company into the future. The company needs to try and attract younger customers, including Generation X and Y, who are savvier e-commerce shoppers.

The discount warehouse services industry is highly competitive. Still, the question must be asked: The company has also been using promotions, including Living Social, which should attract a younger customer base. Costco also holds immense clout on its suppliers for the large purchases it makes from them.

The discount warehouse services industry is highly competitive.Costco Wholesale Corporation, SWOT Analysis Strengths Weaknesses – ) Financial Performance The company reported revenues of (U.S. Dollars) SWOT Analysis SWOT Analysis – Overview Costco Wholesale Corporation (Costco) operates as an international chain of membership warehouses, based in the US.

Selina Palmer Professor Assuma MKTG December 8, Costco SWOT Analysis Costco is a wholesaler since it buys products from suppliers and resells them to both retailers and consumers.

Costco is the second largest retailer in the United States. Nov 12,  · Costco Remains the Wholesale King, but Is It an Ideal Investment? pm. Thinking about investing in Costco before the holidays? While the SWOT analysis makes Costco looks good. Costco SWOT Analysis Words | 9 Pages. Professor Assuma MKTG December 8, Costco SWOT Analysis Costco is a wholesaler since it buys products from suppliers and resells them to both retailers and consumers.

Case 2 - Costco Analysis.

Costco Wholesale SWOT Analysis, Competitors & USP

costco. Costco Case Analysis. COSTCO REPORT CASE (2) Costco Wholesale in Costco Case Study and Strategic Analysis. Sinegal is an effective CEO as shown by his goals to keep Costco as 3 Case 1: Costco Wholesale in evaluating the company’s progress. Costco also attracted the most affluent 5/5(1).

SWOT ANALYSIS Group 4: Wholesale Clubs Due Date: April 13th Participants: Chelsea Jensen (Sam’s Club) Caitlin Kavanaugh (BJ’s) Julie Lehrman (Costco, formatted and submitted the document) A SWOT analysis is an analyzation on a situation which is broken up into 4 parts: Strengths, Weaknesses, Opportunities, and Threats.

Costco swot analysis 2012
Rated 4/5 based on 37 review