Case Analysis Of Costco

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Costco has its first store opened in Seattle in 1983, and now there are 457 stores all around the world, many of them are in United States, the rest has been separated other countries like Canada, Britain, South Korea, Taiwan, Japan, Mexico, Australia and etc. Costco has outperformed many other competitors in the industry for many reasons: • From sales point, for example, from chart 3, we can tell that Costco has been generating more and rapid revenues compared to Target and Wal-Mart from 2006 to 2014, and the revenue percentage change has been more obvious in recent years. Even Wal-Mart has 642 Sam’s club, compared to 457 stores from Costco in 2005 (GreenHouse, 2005), while in United States, its sales’ average is $121 million compared to…show more content…
Costco’s position within four pillars of analytics competition To better understand Costco’s strength and to analyze in logic way, book has suggested fur pillars of analytics competition. • Support of a Strategic, Distinctive Capability Since analysis is used to support capability, and capability could vary from many aspects, such as the supply chain, cost, or time. For example, the measurement of consumer finance service would rely on financial score, such as FICO. The same as for Costco, the wholesale warehouse, that distinguish it from other companies is the low-cost operations, meaning delivering a service or a product at a lowest possible cost, as indicated in class slides. Costco is able to sell their products usually in lower price compared to other supermarket or stores. 1. From the price side, the reason is the product price is marked no more than 15 percent of the original cost price. Based on data from CNBS news, typically, supermarkets or stores product price is usually 25 percent or 50 percent marked up. This gives Costco delivering their products in lower price in

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