Tuesday, 15 December 2015.
The SWOT analysis of Costco is one of the best methods used by the company in assessing itself and making decisions about market stability. Costco Wholesale is considered one of the world’s largest retailers. At the base in Seattle, Washington, USA, Canada, Japan, Mexico, Spain, and Australia. He also has several subsidiaries in Korea and Taiwan. Check our essay writing service: essayservice.com.
What is SWOT-Costco’s analysis?
The SWOT analysis of Costco involves assessing strengths, weaknesses, opportunities and threats to the company. Considering the majority of players and changing trends in the retail industry, it is always recommended that the company conduct the SWOT analysis to determine the weaknesses that need to be corrected and fully exploited
After analyzing the SWOT analysis, Costco Wholesale will be able to understand how to package itself for continuous growth and development in the market. The following is a complete analysis of SWOT
These are distinguished functions of Costco, which make it unique and different from other retailers in the sector. One of the strengths of Costco is its price power. The company will mainly focus on providing its customers with quality products at the most competitive prices. The fact that it does not focus on maximizing profit in the short term gives many customers the assurance that they always receive high-quality products
Brand loyalty is another strength of the company that it has been able to achieve by constant high quality and high value. It also enabled him to attract the loyalty of the clients
Costco often records high volumes of sales, contributing to revenue growth. As a result, the company can receive high revenues even if its prices are not other retail sellers
Although Costco is a well-known lucrative retailer, it still suffers from certain defects which, if not addressed in time, may have a negative impact on operations. One of them is the business model of the company, which allows only the members of the club to use storage. Just as this may encourage buyers to buy in the company’s stores, it also limits the possibilities
Another weakness of Costco is that stores do not offer a wide range of goods and services, such as other retailers. This leads to the fact that many customers who prefer shopping in shops can easily find all the products they need at the same time
One of the opportunities that Costco can use is to increase the number of young clients. In recent months, the company’s management has taken steps to attract young customers, which can greatly help in managing the company’s long-term sales
For people using electronic commerce, there is another possibility that Costco should tap. Intensive online marketing can also be an excellent way to reach new markets and attract more customers
Costco plans to continue to grow on the international map. There are several external markets with better prospects, such as China, France and others
In the area of storage services, it is quite competitive, given the large number of participants who offer a similar process, quality and choice. In the domestic market, Costco faces stiff competition from companies such as BJ’s Wholesale Club, Sam’s Club, etc. At the international level, there are several other competitors such as Internet retailers and even others that do not require membership
Intensive marketing, which other retailers dealing with similar products, such as Costco, represent another threat that the company has to decide to avoid stealing
Conclusion on Costco’s SWOT analysis
Costco Wholesale is a business with high viability, a reason why it continues to expand even bad economic times. Its competitive prices are a key force that keeps business afloat. The above review of Costco’s SWOT analysis also shows that the company has several opportunities that it can use to tame the threats on the market. Through the company’s website, intensive Internet marketing and a network of suppliers, it can effectively reach a wide client base and deter competitors
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