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S.W.O.T. analysis on Costco - Essay Example

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The company has a good financial base and committed management team. Despite the ever-increasing competition, the company has managed to increase its total revenue. The financial position of the company makes it attractive to…
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S.W.O.T. analysis on Costco
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Download file to see previous pages The companys first business opened in 1976 under the name Price Club on Morena Boulevard, San Diego (Costco Wholesale, 2013). The company originally served small businesses, but it discovered that it could achieve greater buying influence by also serving some audience of non-business members. In 1983, the company’s first warehouse was opened in Seattle. The company became the first to grow from 0 to $3 billion in terms of sales in less than six years. Costco merged with Price Club in 1993. The combined company operated under PriceCostco where it had 206 locations of operations generating annual sales of $16 billion.
The headquarters of Costco Wholesale Corporation is found in Issaquah, Washington. The company is the globes biggest warehouse club chain based on sales. The company has employees of about 142,000 in number. This paper analyses Costco in terms of its strengths, weakness, opportunities and threats. The paper sets out a short history of the company and its market position. The paper looks at the revenue of the company, and the areas it can also engage into in order to increase its revenue. This paper sets out to explore if Costco has managed to hold its ground in its line of operation (Costco Wholesale, 2013).
Costco boasts of very loyal customers. Customer loyalty is the strength of the link between an organizational relative attitude and continuous patronage with customers. The organization has effectively managed to attract and retain many customers over the years of its operation in operation (Costco Wholesale, 2014). Since Costco has a loyal customer base, it allows for the organization to have continued business from customers. It gives the organization credibility from customers who help it to grow. Customer loyalty has many benefits which include customers buying from an organization from time to time again, increase in how much ...Download file to see next pagesRead More
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