Compettive Analysis Costco Wholesale Company

1630 Words Apr 19th, 2012 7 Pages
Competitive Analysis
SWOT analysis of Costco Wholesale Co. Costco Wholesale Corporation is the world’s largest membership warehouse club chain based on sales volume. Sales for the fiscal year ending September 30, 2008 were almost $71 billion ( Costco was founded in Kirkland, Washington by James Sinegal and Jeffrey Brotman. Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. Costco is headquartered in Issaquah, Washington ( Strengths Costco has a good reputation for competitive pricing on high-end or high-value products. It has undergone expansion and is now represented in many countries around the world. Limited product offerings (usually only 10%
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Opportunities The most significant opportunity for Wal-Mart is to acquire, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Global expansion has been limited in size and success. There are tremendous opportunities for future business in expanding consumer markets, such as China and India. Previous attempts by Wal-Mart were independent of existing retailers, so joint efforts may provide greater opportunity for success. In addition, new locations and store types offer Wal-Mart opportunities to exploit market development. For example, opportunities exist for Wal-Mart to continue with its current strategy of large, Supercenters, while developing more “local” and mall-based sites. Threats Being number one means that you are the target of competition, locally and globally. In addition, duplication of the Wal-Mart model of “low prices” creates intense price competition In addition, since many of the products sold at Wal-Mart are exports, a stronger dollar will drive up the prices Wal-Mart has to pay.
Cross-implication matrix for Wal-Mart
| |Strength |Weaknesses |
|Opportunities |Expand into new markets such as China and |Give more focus to the range of products |