• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Costco supermarket - business model and strategy

Extracts from this document...

Introduction

1. What is Costco's business model? Is the company's business model appealing? Why or why not? Costco's business model is Sell very large volumes of merchandise and achieving high inventory turnover. The company implemented this model to Sells private label and branded merchandise, and open to Costco members only. This business model is appealing for most companies and has many benefits. Because no matter what the company, always hope to be able to save money for the company. So a good agreement in advance with supplier payment terms is the best way for company. Costco has such high sales volume and rapid inventory turnover it is able to receive cash from the sale of a large portion of its inventory before it has to pay back its suppliers. Also Costco sell high quality merchandise to customers at the low prices. And another benefit doesn't need to maintain a high level of operating funds, or take interest on loans to pay suppliers. �Costco?????????????????????????????????????????????????????? 2. What are the chief elements of Castro's strategy? ...read more.

Middle

Yes, I think Jim Sinegal is an effective CEO. If I give him grade, I will give him A. He has many special ideas. And every idea is good and useful. Jim Sinegal always maintains an important management philosophy is keep members come in and shop by low price. He stress products should cheap as possible as they can. He thinks provide value for their customers is more important than get more money. He thinks they should let their employees get more money and better benefit. They are company's treasure. He hopes Costco can develop in many territories. It is good for members. And he thinks they should stable expansion. All the things tell us that his management is flexible and he is an effective CEO. 4. Are Costco's prices too low? Why or why not? In my opinion, Costco's prices are not too low. One of Costco's key strategies is keep low price to members. And Costco know what members need---low price and popular merchandise Why Costco is a top warehouse club, one of reason is low pricing, it use low cost to purchase large volume of wholesale. ...read more.

Conclusion

So, Costco's pay its employee's too much is not only good for employees, but also an important part of the company's development. It is the Costco's business philosophy and value. A good compensate package can attract and retain talents. The Costco's employee hasn't a skimpier benefits package and benefits package and lower wages, so they turnover rate is low. Costco's offer a good career and given opportunity to their employees, in return, the employees will loyal, work hard and willing to dedicate. It will get better productivity. It's the competitive advantage of the Costco. 6. What recommendations would you make to Jim Senegal regarding the actions that Costco management needs to take to sustain the company's growth and improve financial performance? I think the company should continue to maintain their good status, and to provide more low prices and high quality merchandise to customers. And high reputation satisfied the customers with good quality, competitive price to win customer's trust. Expanding sales coverage, and set up online shopping and branch stores in other countries, which would allow more people to buy Costco merchandise. Let employee make contributions to creating new ideas to improve Costco growth. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Business Culture & Strategy Analysis Of JD Wetherspoon

    4 star(s)

    Opportunities: * Expanding product lines The pubs in JD mainly serve beverages and food. More food categories and beverages can be developed. The customers will have more selects which result the increase of profits. * Taking market share from rivals.

  2. Market entry strategy of Aldi and Lidl. Plans for expansion.

    such market that meant creating new more attractive product offers for customers with high level of services. Aldi in UK and Switzerland was trying to concentrate on 700 products for daily use in these two countries as well as adapting to new eating habits and consumption habits typical for the customers.

  1. Unit 9: Marketing Strategy

    * Defensive - This focuses on maintaining a share of the market or the contribution made on sales. This may apply to smaller high street businesses which must defend themselves against larger chain retailers. * Flanking - This is used when a business sees no way to defend a market,

  2. Unit 12 - International Dimensions of Business Task 1

    Ensure no. of passengers flown is higher year by year Just like their first aim, the meaning of this one is as clear as it's title - the meaning of this aim is that British Airways want the number of passengers that use their service to increase every year.

  1. NHS change management

    shock, then coming to the reality by acceptance, testing it out and involving in a process of mutual adaptation and finally, achieving it through the process of internalization (M Laycock, 2005). However it can still be argued whether all the staff at NHS have reached the internalization stage.

  2. PEST is a planning tool which is used by a business to evaluate and ...

    This PEST factor also could be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of meeting stakeholder's needs; this is because Ginsters will need to make sure that they have the money to be able to pay for the increased prices in fuel.

  1. NETFLIX CUSTOMERS SATISFACTION

    The review of the liter?ture suggests th?t the most common component of ev?lu?tion is previous expect?tions of the purch?se experience by the consumer. It c?n thus be st?ted th?t consumers ?re s?tisfied when purch?se results exceed their expect?tions, in ?ccord?nce with the "disconfirm?tory p?r?digm" (Oliver, 1980).

  2. Chick-fil-A corporate strategy

    Truette?s Grill is located exclusively in Gerogia and opened its third restaurant in 2006. A huge part of their corporate strategy is the way they create the joint ventures with their independent operators. Rather than selling franchises the firm seeks out individuals, often from within the organization, to become an operator.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work