Strengths : Value Added Services And Brand Loyalty

934 WordsDec 4, 20154 Pages
Strengths - Value-Added Services and Brand Loyalty With 91 percent renewal rate in 2015, Costco’s value-added services to its members still remain one of its biggest advantages in the retail market. It is because not only Costco offers its members with wide range of high-quality products at low prices, but also it provides one of the best services in the market. In order to keep high value on membership, Costco generally accepts returns of merchandise. On certain electronic items, it has a 90-day return policy and provide technical support services and an extended warranty. In addition, Costco provides consumer services, insurance services and business services to its members. Its members are also qualified for additional discounts from its business partners, such as Avis Rental Car. In 2015, there are 81 million card carrying Costco members in the U.S., translating to 33% of all adult Americans. The number of cardholders and high membership renewal rate strongly demonstrates how successful Costco maintains its customer loyalty, which is the foundation of its business. Strength - Outstanding Operation Performance Costco has been profitable over the past several years. For the fiscal year ended in September 2015, Costco generated $113,666 million of revenue, which reflected an increase of 3% over $ 110,212 in 2014. Changes in foreign currencies and gasoline prices had a negative impact on net sales. After excluding this impact, Costco had an increase of 7% in net sales.
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