Cost Analysis Of Costco

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In the current market situation where the economy is constantly on a downfall and people are doing everything that is necessary to reduce cost and save money. Food products and daily essentials are one the major contributors of cost for everyone. Especially younger generation are willing to lead a simplistic and cost effective life style to save money. Despite being the second largest retail chain in the world, 2015. And also one of the cheapest retailer in the market it is finding very hard to attract the Millennials in to their stores. Costco is the largest retailer when it comes to membership only stores and it is estimated that the net income of the company to be around $2.38 billion US dollars (http://www.marketwatch.com/investing/stock/cost/financials). …show more content…

Their business model is aimed at small business and sub urban households. They offer lower prices when you buy in huge amounts. In order to shop at Costco one has to have access to a car in order to carry all those items and also space at home to store those items. But when it comes to younger generation most of them doesn’t have a car and most of them live in shared apartments where there is no place to store these bulk products and even if they find a way to store them, they won’t be in a position to utilize all these products before their expiration date which is also huge factor that forces younger generation to shop some where …show more content…

Costco has to change the way it handles social media and it also should offer benefits according to the demographic of the people. Methodology In this paper we are going to use different methods to understand in detail where the problem lies and what the root causes of the issue. SWOT Analysis SWOT analysis is one of the most widely used technique and most effective technique that can be used to determine the strengths, weakness, opportunities and threats that are associated with in organization. With this we can form a clear idea about what step should be taken to rise to the next level. 1. Strength • It is the second largest retailer in the world. • It has stores all over US and Canada. • It offers wide range of products. • It has good image among the general public. 2. Weakness • Lack of presence in social media • Lack ability to provide lower quantity products • Membership fee • Poor online

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