Business Analysis Part 1
Week 4 Business Analysis Part 1
R M Butler
MGT/521
10/15/12
Melany Felton
Week 4 Business Analysis Part 1
Costco Wholesale
Strengths Weakness, Opportunities, Threats analysis of Costco Wholesale starts off with their strengths. Diversified products and services, rapid turnover of inventory, efficient operating structure, strong market position, low cost promotion and marketing strategy, and Costco offers its customers the lowest prices on a wide range of branded products. Provides results in high volume of sales from single vendors, allowing for reduction in price, and reducing market cost. Costco wholesale also saves money by not stocking extra bags or packing material, to carry out their goods members must bring their own bags or use the merchandise shipping boxes for the company’s outside vendors.
Weaknesses consist of operating on a large scale means difficulty in bringing changes to the grass roots level, concentration of operations in the California market, lax quality control, and weak compliance function. Costco business conditions constantly change because their external and internal forces that make up other participants constantly change their actions (www.costcowholesale.html.com) Costco wholesale does not carry multiple brands or varieties where the item is essentially the same when it has a house brand that sell under Costco’s Kirkland signature label. If Costco’ management felt the wholesale price of a product is too high they will refuse to stock it, therefore leaving its customers to search at a competitors for the item.
Opportunities consist of a growing demand for private label products, expanding market presence, increased online sales by creating a website in, United States and Canada to be more effective in the global internet market. As of September 2011 Costco wholesale warehouses in the United States, Canada, Mexico, the United Kingdom, Japan, South Korea, Taiwan and Australia with its largest wholesale warehouse
R M Butler
MGT/521
10/15/12
Melany Felton
Week 4 Business Analysis Part 1
Costco Wholesale
Strengths Weakness, Opportunities, Threats analysis of Costco Wholesale starts off with their strengths. Diversified products and services, rapid turnover of inventory, efficient operating structure, strong market position, low cost promotion and marketing strategy, and Costco offers its customers the lowest prices on a wide range of branded products. Provides results in high volume of sales from single vendors, allowing for reduction in price, and reducing market cost. Costco wholesale also saves money by not stocking extra bags or packing material, to carry out their goods members must bring their own bags or use the merchandise shipping boxes for the company’s outside vendors.
Weaknesses consist of operating on a large scale means difficulty in bringing changes to the grass roots level, concentration of operations in the California market, lax quality control, and weak compliance function. Costco business conditions constantly change because their external and internal forces that make up other participants constantly change their actions (www.costcowholesale.html.com) Costco wholesale does not carry multiple brands or varieties where the item is essentially the same when it has a house brand that sell under Costco’s Kirkland signature label. If Costco’ management felt the wholesale price of a product is too high they will refuse to stock it, therefore leaving its customers to search at a competitors for the item.
Opportunities consist of a growing demand for private label products, expanding market presence, increased online sales by creating a website in, United States and Canada to be more effective in the global internet market. As of September 2011 Costco wholesale warehouses in the United States, Canada, Mexico, the United Kingdom, Japan, South Korea, Taiwan and Australia with its largest wholesale warehouse
References: 1. www.costcowholsale.html.com 2. NASDAQ-Cost 3. Costco wholesale swot analysis.com/retailing swot/39 costco-wholsale-swot 4. Berry L. “The Best Companies are Generous Companies” 5. Bick, Julie “24Rools of Toilet Paper, A tub of salsa and Plasma TV. NY times, 28 Jan 2007 web 2 Apr 2012 6. Costco Annual Report 2011, Costco Corporation 19 Dec 2011, Web 9 Apr 2012