Case Study Of Costco

Per Investopedia, Costco is a subscription business model, which means that anyone that would like to buy at the store must paid for an annual membership. This membership price that can be $55 or $10 guarantee low prices always. This type of business is typically seen in magazines and newspapers; however, Costco differentiate in that it also offers a service, which is to pass the saving to consumers. Although it might look easy to have this type of business, is not, consumers must see that subscription is worthy for the price, and Costco has nailed it by offering low prices, and convenience, as product from all categories are offered in one place, plus many other can be order online. In addition, Costco success to this type of business model is due to its high sales volume and the fast inventory turnover. Costco mission is “To continually provide our members with quality goods and services at the lowest possible prices.” (Costco.com, 2016) This mission has been the base for the success of the company, and is reflect on the business strategy. Costco is unique in the way it does sales and how attract its customers. In comparison with other retailers such as Walmart, retail stores and/or other

(COST) for further data of subsequent years. In addition, days of inventory ratio decrease and inventory turnover increased which translate to efficiently managing inventory. Consequently, Costco is a healthy business that is succeeding. Another proof to stability and growing is the fact that Costco stocks price mainly increases over years or days stable. As of November, stock price was $143, although low to the goal of $169.73 is growing back, however the goal might not be met by the end of December due to showing a steady grow more than an aggressive