Costco Wholesale Corporation Part III
Costco Wholesale Corporation is in an industry where there are several of dynamic competition from huge chains such as Wal-Mart or Sam’s Club and Target, and yet it could maintain a competitive and profitable stance. Effective strategic planning is essential part in operating any business in relation toward adapting to organizational and operational adaptation to changing markets. Through inquiries, the influence in the recent economic trends, provide strategies that have use or could use in the adaptation to changes in the market related to issues of economic trends, such as recession and economic downturn. Costco Company’s research paper will further discuss the tactics that has implemented or could implemented to achieve strategic goals and the role of human resources management in helping the company achieve its business goals. Assuming the role of a Mutual Fund Manager, using the three parts of business analysis gathered enhance my understanding the reason it is an extraordinary idea to invest in Costco Wholesale Corporation.
In today’s economy, even most successful businesses, including Costco Company also suffers from the recent economic trends. Despite from the economic crisis, it is imperative for Costco Company to focus on the strategy in providing items in bulk and at low prices to give assistance in sustaining growth during the slow economic times. The successful pursuit of a low-cost strategy lets Costco charge less than its competitors and still make profits. The pricing tactic that Costco has executed focuses on the price-sensitivity of its consumers. The company has shined in keeping its prices low by capping the markup on its merchandise. Costco is precise at organizing for example, using floor space, and producing high revenues from its products within its stores. Besides a wholesale club, Costco delivered more value to customers by, including ancillary services for example, Pharmacies, and gas stations to increase the number of visits made by members and accordingly increase their spending. Because of market, saturation in the United States, Costco Company began to expand into East Asia. Costco Wholesale Corporation’s strategy enhanced in reaching global markets had an extreme success. The cornerstone of Costco’s strategy to use in adapting to changing market is to continual focus on keeping cost low control; attract customers in the biggest moneymaker membership fees, and market expansion. Costco has a good reputation for competitive pricing on high-end or high-value products. It has undergone expansion and is representing in many countries around the worlds. Thus, despite the economic downturn and recession, Costco Company is always prepared to counter periods of economic crisis. The successful company’s corporate attitude toward change is often one of open acceptance and even encouragement.
The tactics Costco Wholesale Corporation has implemented to achieve their strategic goals lays in the foundation of the business philosophy, values, and code of ethics. The Company’s Chief Executive Officer, Jim Sinegal had in-built five modest down-to-earth business principles into Costco’s corporate culture and the manner in which the company functioned. The key elements of Costco’s business model involve a dedicated commitment to effectiveness and centering on the customers’ needs and desires while maintaining an internal culture of creativity, community, and teamwork. Costco also publishes its own internal magazine, which is a factor in the company’s internal public relations and communications structures. Many people are aware of Costco Connection magazine, which seen by insiders and supporters of Costco to often offer a competitive advantage in the rank-based system of exclusive Costco membership. The magazine is solely as another method to portray its external communication regarding the mission,...
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