Costco Swot Analysis Essay

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The Costco case shows that their business continues to grow and expand. The company now has operations in many overseas locations. Costco is one of the biggest retail companies on earth (Gregory, 2017). Costco has the fundamental strengths to take advantage of unseen opportunities in the retail industry. The company’s low prices make it attractive even when there are economic difficulties. Costco has a basic strategy, which centers on driving sales. This company drive is why Costco is the most prosperous business in the discount store space.

Costco capitalizes on the main strengths of their business. Costco has low prices on basically all good and service offered in its warehouses and website. Costco has fast inventory turnover joined with their high sales create higher revenues. The high sales volume confirms high revenues even when selling low price items (Gregory, 2017).

A business can put in place several basic approaches to competing successfully and gaining a competitive advantage over rivals. These approaches involve delivering more value to customers than competitors (Thompson, 2016).
When planning for the future, Costco must make sure that it comprehends where the industry is headed. Because of the external …show more content…

Because Costco needs to maintain very low prices, a lot of pressure is put on the profit margin of the company. In the past, Costco has kept relatively low profit margin levels versus other competitors within the industry. Costco’s profit margin is considerably less than the competitors. In order to increase its profit margin and remain a competitor in this industry, I recommend that Costco find a way to decrease costs while keeping their prices low. Internal and external analysis elements show that Costco’s managers must formulate new strategies for sustained growth and development of the firm (Gregory,

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