Essay on Wal Mart Vs. Costco Wholesale Corporation

Essay on Wal Mart Vs. Costco Wholesale Corporation

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Which one is better Buy Now: Wal-Mart Stores, Inc. vs. Costco Wholesale Corporation? Costco is doing better, but Wal-Mart stock is much inexpensive. Which one is a better buy right now? Here are two different retailers with two different strategies. The alternative norms are that Costco operations are entirely based on the warehouse model and membership fees offer customer more of an economic advantage to customers than Wal-Mart everyday low prices and flexible payment with suppliers. My objective is to analyze the two retail giants’ methodology to satisfy and maintain customer although that I anticipate Wal-Mart’s to be a better buy than Costco because of the gargantuan scale of Wal-Mart has constructed its commerce on saving the customer money, and is a bigger organization than Costco at this moment. The method by which data will be collected is via internet research and the variable collected during the research will precisely point the dissimilarity between customer economic advantage at Wal-Mart and Costco in monetary terms. Which one is a wise investment for a trader? This research proposal is important because our economy is consumer based. This research will give us great insight on what drives particularly this type of economy. Let us take a look at Costco. Costco moves an amazing $110 billion of merchandise through its 700 warehouses around the world. It is the second most prevalent retailer in the United States surpasses Target and slightly below Wal-Mart even though that Wal-Mart has 10 times as many stores and Costco has been grasping market share from that retailer, as well as other retailer rivals, for years now. Costco grew comparable-store sales by 5% or better annually since 2011but those retailing wins are sec...


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... established with their high wages, friendly atmosphere, and flat hierarchy. The business level strategies of the two companies are very similar but we feel that Wal-Mart wins out in this case as they simply are better at providing the lowest-cost on the most diverse set of products. As far as a corporate strategy goes it would appear that Costco is not participating in any multi-business level strategies and although that alone doesn’t make Wal-Mart stronger, we do believe that the corporate-level strategies that Wal-Mart has chosen with their international business, and Sam’s stores have been successful and do help diversify their revenue streams, making them a stronger company than Costco. All-and-all Wal-Mart is a less friendly company, but we are not here to be nice, we are here to make our million into 2 million, given that, we choose to invest in Wal-Mart.

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