Costco Case Study

1548 Words7 Pages
Do employees at Costco change the structure of HR. Costco is the largest warehouse that offers membership. They have been operating for more than thirty years, since 1983. They have a reputation on begin the largest company that sales big bulks of items for an extremely low price. The case study Employees Matter at Costco entails on how employees are treated. With the number of employees that a company like Costco must hire daily, it is only necessary that the impacts of its HR department structure is thoroughly analyzed. Costco has impacted the retail shopping industry. Use five- force model to outline how Costco impacted the grocery and nongrocery marketplace. Costco is a club card organization. Having a Costco membership has some nice perks. They have serious money saving opportunities. Products are discounted every month at a Low cost, prescriptions, discounted tickets, passes, gifts cards to theme parks and movies. While shopping there are hot dogs and refillable drink for $1.50. Travel discounts on flights, hotel, rental cars and cruises. Access to free health screening, low prices on gas, and insurance which includes life. Great deals on tires and if anyone has a small business they even help with payroll and accounting services. For employees, they offer the best wages in retail. Employees are rewarded with incentives and bonuses. Employees can grow with the company because they promote within. According to Costco corporation, “Costco has some of the best top suppliers, PepsiCo, and Kraft Heinz”. Having these top brands gives the company an advantage to bargain with their prices. A new competitor coming into the retail world, would find it hard to match Costco products and prices. According to the Lussier (page52) “Five Forces analysis is brought to us by Michael Porter who identified competition within an industry as begin a composite of five competitive forces that should be considered in analyzing competitive situations.” Five Forces that outline Costco are rivalry among competitors. Rivalry among the company is high. Costco and Walmart are the top two in retail. There are others, Best Buy and Target which are well known for holding their power. Retailers are

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