Costco SWOT Analysis
Selina Palmer
Professor Assuma
MKTG 305
December 8, 2014
Costco SWOT Analysis
Costco is a wholesaler since it buys products from suppliers and resells them to both retailers and consumers. Costco is the second largest retailer in the United States. Its greatest advantage is its wide range of merchandise. Costco has many locations and has retail outlets in other countries. Originally, Costco was merged with Price Club and the original executives belonged to both companies. However, Sol and Robert Price left to start Price enterprises which is no longer in existence today. It was not until 1997 all stores officially changed their name to Costco. Today annual revenue is in excess of 77 billion US dollars.
Costco has a huge target market which includes the family since families like to buy in bulk to keep things on hand. However, Costco has merchandise for kids and a lot of single people go to Costco as well so it can appeal to pretty much everyone. Businesses are another target market since a lot of smaller businesses can buy the goods they need for an affordable price and get it in bulk. Bakeries for instance buy drinks, pastries, and breads which can be sold at a higher price.
Costco’s main competitor is Sam’s Club. Sam’s Club is owned by Wal-Mart which helps Costco because small businesses do not support Sam’s Club as much as Costco. A lot has to do with image. Costco buys brands and renames them under the Kirkland name. Sam’s Club struggles to be able to rebrand certain products. For instance, in 2002 Costco bought Bumble Bee tuna and renamed it under the Kirkland brand and it sold pretty well.
Strengths
One of the largest retailers. Costco is one of the top wholesale clubs in the United States. It is present in thirty-eight countries and operates through 664 warehouses.
Offer free samples. This entices the person to buy the product.
Good quality meat department. I hear a lot of compliments about the meat section at Costco. Their whine selection has a nice
Professor Assuma
MKTG 305
December 8, 2014
Costco SWOT Analysis
Costco is a wholesaler since it buys products from suppliers and resells them to both retailers and consumers. Costco is the second largest retailer in the United States. Its greatest advantage is its wide range of merchandise. Costco has many locations and has retail outlets in other countries. Originally, Costco was merged with Price Club and the original executives belonged to both companies. However, Sol and Robert Price left to start Price enterprises which is no longer in existence today. It was not until 1997 all stores officially changed their name to Costco. Today annual revenue is in excess of 77 billion US dollars.
Costco has a huge target market which includes the family since families like to buy in bulk to keep things on hand. However, Costco has merchandise for kids and a lot of single people go to Costco as well so it can appeal to pretty much everyone. Businesses are another target market since a lot of smaller businesses can buy the goods they need for an affordable price and get it in bulk. Bakeries for instance buy drinks, pastries, and breads which can be sold at a higher price.
Costco’s main competitor is Sam’s Club. Sam’s Club is owned by Wal-Mart which helps Costco because small businesses do not support Sam’s Club as much as Costco. A lot has to do with image. Costco buys brands and renames them under the Kirkland name. Sam’s Club struggles to be able to rebrand certain products. For instance, in 2002 Costco bought Bumble Bee tuna and renamed it under the Kirkland brand and it sold pretty well.
Strengths
One of the largest retailers. Costco is one of the top wholesale clubs in the United States. It is present in thirty-eight countries and operates through 664 warehouses.
Offer free samples. This entices the person to buy the product.
Good quality meat department. I hear a lot of compliments about the meat section at Costco. Their whine selection has a nice