Costco Wholesale SWOT Analysis

{ Posted on Jun 03 2010 by adam | 13,354 views}

Strengths

Costco Wholesale is one of the largest retailer stores in the market. The company has differentiated and positioned itself well in the market through its mission statement. The company’s mission statement well understood throughout the firm.

Costco Wholesale offers its customers and consumers lowest prices on a wide range of national and international branded products and goods, in a wide arrange of merchandise categories.

The products and services of the Costco Wholesale are reliable as the company deals in best available quality products at competitive prices.

The company pays attention to details and has various strengths that add to its success. These factors include rapid turnover of the inventory, running an efficient operating structure, reduced cost of handling of merchandise and generation of high sales volume at each of its store.

Costco Wholesale gives preferences to it customers and provides them best value for the money.

Other than offering highly competitive prices on best-quality goods and a range of convenience services, Costco Wholesale does its best to be a valuable quality provider for every community where they operate. This also includes providing good jobs at good pay, continuous involvement in community activities and charities.

Costco Wholesale is one of the top wholesale clubs in the United States. It is currently present in 38 states operative through its 375 clubs.

Costco Wholesale also operates several consumer and business services, ranging from financial planning to health insurance. By providing top quality goods and services, Costco has been able to increase its market share a great deal over the past several years.

Weaknesses

Costco’s business conditions constantly change because external and internal forces make other business participants to alter their actions. The driving forces in this sector are the major underlying causes changing business and competitive conditions.

Operating on a large scale means difficulty in bringing changes to grass root levels.

Opportunities

Costco Wholesale is one of the first companies to have a growing acceptance of internet shopping. Costco created a website in the United States as well as website in Canada to be more effective and competitive in the internet market.

The company is constantly working to make its distribution channels stronger and enter new potential markets.

By offering value and working more towards developing a strong loyal customer base the company can gain more market share.

Threats

Warehouse clubs not only compete in one sector or market but it competes with a wide range of other types of retailers which include Wal-Mart Dollar General, supermarkets, general merchandise chains, specialty chains, fuel stations and internet retailers. Their competitiveness changes because the different types of products they deal in.

Due to its tremors growth and growing market share, the company has caught the attention of many of the market leaders and its competitors.

The industry of wholesale has a number of individual companies that are highly competitive and have very effective strategies. They have developed loyal customer bases and evry one is relentlessly fighting for the greatest market share. Costco’s major competitors include Wal-Mart’s Sam’s Club.


One Response to “Costco Wholesale SWOT Analysis”

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