• 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)

    * Taking market share from rivals. This can help the company increase the market share and decrease the competition. Threat: * Entry of new competitors With retail licensing market adapting to changes in the 'tied house' system and other retail pub chains, more and more pub chains started their businesses.

  2. Unit 9: Marketing Strategy

    The marketing mix is in relation to product, price, promotion and place. After deciding upon a competitive position and a subsequent marketing warfare strategy I must consider how I will use the four Ps to implement the strategy of Guerrilla to attack the weaknesses of competitors whilst remaining defensive.

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

    But Indian economy is growing whereas Brazil has remained without any improvements. So some examples also show that Greenfield investments are more beneficial for the host countries. Although such point of view can be argued. As, for example, in Aldi's case entering different countries markets in 1950th (after the Second World War, when the time faced shortage of goods)

  2. NHS change management

    It is clear from the coping cycle that employer relationship is much more important in the process of psychological contract, effective communication and good relationship always gain advantage in the organizational context and people will be prepared for the change.

  1. NETFLIX CUSTOMERS SATISFACTION

    Customer satisfaction is ?n import?nt issue in ? business bec?use it drives revenues, m?rket sh?re, ?nd competitive strength. Org?nis?tions often think the w?y to me?sure customer satisfaction is to ex?mine the number of customer compl?ints. The problems with this method is th?t it is re?ctive, it only responds, if ?t

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

    This PEST factor could be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of becoming the UK's savoury product market leader this is because Ginsters will have to change their packaging in order to decrease their effect on their environment.

  1. Applied Business Studies Unit 7: Career Planning

    Event from the competition * Have knowledge of sales, marketing or copywriting * Have an understanding of budgeting and financial management * Be able to work as part of a team * Be able to pay attention to detail. Entry There are no set qualifications needed to get into Events

  2. Chick-fil-A corporate strategy

    In 2002, more than half of the Chick-fil-A operators were making over $100,000 a year, with some making as much as $300,000. Chick-fil-A also offers licensing agreements to open a Chick-fil-A Express in places such as college campuses, hospitals and airports.

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