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Comparison Between Costco And Amazon Prime

Satisfactory Essays
In the past, Costco has had a great strategy to gain the public’s awareness. Not only has this company done well in the past but it has also gained respect from large families who appreciate not going to the store twice a week while saving money at the same time. With today’s society being the way it is, it is not logical for Costco to keep on going the way it’s going if they want to be able to stay afloat. With the company growing to online retailing they believe that they can overcome a huge competitor, Amazon Prime. In the article, business insider it states “We compared prices between Costco and Amazon Prime to find out which retailer offers the best deals. It turns out that Costco is the cheapest by a landslide, with an average discount of 19% on items where there was a price discrepancy”. With this being said, I think Costco’s next strategic plan is genius and will even take away some business from Amazon by new clients who have never shopped at Costco. However, Amazon prime does offer many perks that Costco doesn’t especially for the consumers are picky and who prefer the convenience of two-day shipping. In the textbook strategic marketing problems it defines marketing penetration strategy as when an organization seeks to gain greater dominance in a market where it already has an offering. Which is exactly what Amazon is doing considering they have already established themselves in many means.…show more content…
It also states in the textbook strategic marketing problems it defines market development strategy as a strategy where an organization introduces its existing offerings to markets its not currently
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