Strengths : Value Added Services And Brand Loyalty

turnover, which is made possible by low prices and limited product selection. This business model is appealing for them and has many benefits. Firstly, by setting up the business approach to rapidly

Costco’s business model is called a subscription business model. This is a business model where customer must pay a subscription price to have access to the product/service. Customers who want to shop at Costco must buy a membership with the promise of lower prices to make up for the initial upfront cost; the current membership cost is $55 in the US. The service that Costco provides is its ability to use economies of scale to bulk buy a large amount of foods at low prices and then to pass these savings onto its customers.

Costco is a company that has grown their business through customer service that goes above and beyond. Costco not only focuses on external customers they also care about their internal customers. They continue to strive to have affordable prices, great benefits for their internal customers, and Lenient return/refund policy. Costco has figured out a way to expand their membership by word of mouth(Timm,2014). They have done this by building a strong relationship with their customers. Having a strong relationship with customers is important, especially for a business such as Costco. Seeing as Costco is a retail business a majority of their customers will be return customers. Ensuring that their customers are satisfied has proved to be a key factor in their

In order for Costco to stay competitive in the market and ahead of its competitors, it is essential to venture into different products and services. Costco’s main products vary, which include: groceries and frozen products, fresh meats and produce, bakery goods, beverages and liquors, health and beauty products, seasonal goods, office products, appliances and electronics. To increase Costco’s product differentiation over its competitors and increase sales, Costco began to introduce other products; such as pharmacy, gasoline, auto insurance, and a food court. In addition, extends more services to executive card members that include check printing, payroll services, identity protection, free roadside assistance with Costco’s auto insurance, and traveling benefits.

Costco is a recognized and successful retail chain including several locations, glowing feedback, and a wonderful overall reputation. Known by several audiences to be considered a “big-box” store, Costco offers various products in its stores at low, discounted prices, accompanying a membership card. Before and after researching this company, the author of this paper has heard exceptional feedback regarding the company for its initiative to keep prices low, employee morale high, and customer satisfaction to be one of its top priorities. Within this body of work, the author will dissect and discuss some of Costco’s stakeholder perspectives and how some of the perceived initiatives may help aid the company within its

As a percentage of net sales, Costco’s operating income rose from 2.70% in 1997 to 2.91% in 2001. This is a positive factor, meaning that the firm became more efficient.

There are many strengths of Costco’s business. One of the main strengths is customer loyalty. Last year in the U.S. and Canada, the customer membership renewal rate was ninety-one percent. The global customer membership renewal rate was eighty-eight percent. These high renewal rates

Costco is one of the most profitable retail stores in the United States at the moment. This is in spite of the prevailing tough global economic times and stiff competition from stores such as Wal-Mart and Target. Costco, a members’ wholesale retail store, was founded in 1983 in Washington by Jeffrey Brotman, who serves as the current Chairman of the board of directors and James Sinegal, the current company president. Costco has not been spared by the current global economic conditions. They have affected it in a number of ways that have made the company’s management respond in a manner that is meant to ensure that the business not only survives but grows even stronger. First, Costco has taken strong measures to keep

In my opinion, Costco is continuing to do well. A few months ago, I read an article online in which Costco employees consider the company one of the best employers to work for in the United States. According to an Indeed report that analyzed its database of 18 million employer reviews, employees at Costco are the most

This is due to the fact that customers are forced to buy in bulk. A strategy taken by Costco wholesales to increase store turnover and profitability. Additionally, to increase its market influence, Costco has added services such as automobile, gas, optometry, pharmacy, and printing at very low prices in the past decade. “What’s better than to rotate my car’s tires, fill my prescription, gas my car, all the while I am finishing my shopping”, a dad might say while shopping at Costco. Finally, unlike any other mega-retailer, Costco has included its own employees as primary target market. By respecting the employees and paying them high wages, Costco has created a positive feedback loop for itself. Highly paid employees will have high loyalty toward the company, and they will shop at Costco for their needs. At the same time, due to their high loyalty, staff will provide high quality customer service for common customers. This generates positive word-of-mouth advertisement leading to an increase in membership sig-ups translating into higher profits for the company (Ingram, 2013).

This is a strong performance from Costco in a discount store industry considering challenging market environment and strong competition. In the last thirty-one weeks, it generated net sales of $72.82 billion, reflecting an increase of 6% from $68.96 billion in a year ago period.

Our general findings about Costco are that it is an all-around great, moneymaking, expanding company. To start off, Costco is a membership warehouse that offers its customers low prices on exclusive, private-label products in a wide assortment of merchandise categories that generate high sales volumes and quick inventory turnover. A combination of this turnover, resourceful distribution, merchandise with “no-frill” and a self-service warehouse gives this company extensively lower gross margins than your typical, everyday warehouse or supermarket.

Costco has maintained steady growth as well as healthy finances. The company has maintained its operating expenses at high although steady level ranging from 98%-99%. Operating income has been managed kept its relation to growth. Net income has also been sustained at a level constant to growth. A key factor to Costco’s finances is its membership fees. It accounts for a very small amount in comparison to its net sales, but it is the difference maker between breaking even, (or taking a loss), to making a healthy profit. Costco’s membership fees account for a little less than 2% and is almost equal to its net income. Based on the company’s income statements, Costco is perceived to be in good financial condition, as income to sales ratio remains the same.

Strength One: Academy has a wonderful work environment, they really care about their employees and the mayral is that everyone treats everyone like family. Working at Academy has a lot of perks, they have multiple onsite cafes, a Starbucks, a gym that only cost $20 a month and multiple free coffee stations around their campus. Walking through the halls, everyone says hello to each other and you can truly see that associates truly like their jobs.

In today’s business setting, having an edge against rival companies can make or break you. Loyalty is that edge that will have your company profiting and the customers returning. Frederick Reichheld’s theory, The Loyalty Effect, is one of the most useful and needed business strategies. Without loyal employees within a company, your company is destined to fail. I consider myself a very loyal person, not only at my job, but in all aspects of life. I am a manager at Maui Nix Surf Shop and every part of the job is based on loyalty such as opening the store on time, cash deposits, or staying on task with overseeing the store. I plan on becoming a computer engineer and hopefully working for a company like Google or Apple. I love their business