Customer Experience At Costco Grocery

The strategic objective of Costco is based on the concept of offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories while producing high sales volumes and rapid inventory turnover. This rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self service warehouse facilities, enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets. (1)

WalMart's (NYSE:WMT) expertise in discount retailing is globally recognized, as is their supply chain and extensive logistics capabilities. What differentiates WalMart from the many other discount retailers is their extensive reliance on buyer personas or representations of their customers. All aspects of the WalMart value chain are predicated on serving their customers as cost-effectively and efficiently as possible. WalMart has also created an extensive information systems network that includes satellite uploads of data on a daily basis from their thousands of retail locations to their Bentonville, Arkansas headquarters (WalMart Investor Relations, 2013). The intent of this analysis is to evaluate the mission, vision and strategy of WalMart from the perspective of improving its customer service while also taking into account its financial position. To accomplish this, objectives are provided, combined with performance measures and expected levels of performance as well. All of these factors taken together provide senior management at WalMart with insights into how they can profitably improve customer service.

The things a person could see if they simply watched Walmart’s customers for even a short amount of time are mind boggling. During a typical, mundane Monday afternoon, I browsed through Walmart 's many aisles not in search of a particular product, but simply observing and studying different aspects of the supermarket. The customer’s behavior, product placement, and employee interactions all stood out to me as interesting. I also took notice of how different consumers interacted with different staff members and vice-versa. As I observed the customers, teachings from my Sociology class immediately started taking form in the real world. While analyzing the different social interactions the people of Walmart were having, I begin to apply different theories, such as the functionalist theory, why these things must happen, the conflict theory, why they are unequal, and symbolic interaction, how they happen. Surprisingly, while watching the average day in Walmart, I found it was hard to ignore my ethnocentric viewpoint, thinking your culture is better than another, to cloud my perspective of why certain interactions were occurring.

This essay will use the Porter’s five forces to analyse the supermarket industry in the US, and I will make a decision on whether the US supermarket industry is attractiveness based on its overall profitability level.

Costco’s business model is focused on producing high sales volumes and rapid inventory turnover by offering members low prices on a limited selection of national name brands and select private-label products in a wide range variety. Costco is focused in low-cost strategy is concentrated on a narrow buy segment and out competing rivals by having lower costs, therefore being able serve a niche consumers at a lower price. (Gamble, John and Thompson, Arthur (2009)

The District Court erred in granting summary judgement for Defendant-Appellee Friendly Grocers by declaring that employers are only required to reasonably accommodate a disabled person through consideration of reassignment.

When entering a grocery store, most people don’t take the time to stop and observe their surroundings, for their soul purpose at that instant is to purchase what very food they may need for that day or maybe even for that week. However, through all the haste of wanting to go in and out of grocery stores as fast as one can, most are unaware of the very culture that they too are now apart of, the interactions, both verbal and through people’s body language that they are experiencing, how people look and dress, even what is considered appropriate behavior although not specifically written down. Culture is all around us, and we all contribute to it, whether it is through our norms, values, symbols, or mental maps of reality (Guest 2014, 38-43). That is why through this assignment, I took the time to observe the culture experienced in the American grocery store Stater Brothers, the ethnical Filipino grocery store Seafood City, while also taking the time to reflect on my own personal views of what I thought was “normal” through my experience working in Northgate Gonzalez Market, a Mexican grocery store for three years.

What is Costco’s business model? Is the company’s business model appealing? Why or why not?

Another important aspect is a limited selection of goods. Whereas Walmart or Target may have upwards of 150,000 items sold in their stores. Costco will have less than 4000. They also have their own private label which is only equal to 15% of what they carry in the stores, but it equals out to over 30% of their total sales currently. Another aspect of the product selection is that instead of buying many

Costco is the best cost provider in the wholesale club category and the strategy is associated with Costco’s capabilities and resources, which includes; a streamlined supply chain, good supplier relationships, purchasing power, high sales volumes, quick inventory turnover, and excellent customer service. The three vital components of the company strategy are low pricing, limited product selection and high-end products acquired in closeouts and liquidations. While Costco strives to beat the competitors pricing, it also delivers exceptional value in its high-end offerings and customer service, giving consumers more for their money. Given its customers are the most affluent of all the warehouse clubs, with average incomes around $75,000 and this strategy works well for Costco. However, these customers are conscious not only about money but also value for the product, this fact is supported by the members who choose for executive

When you ask an average American about a wholesale dealer, one name stands out, Costco Wholessale Corp. They are one of the biggest wholesale corporation in US. That is very impressive considering they have only been in the industry for about 30 years. They are member based and provide quality goods and services to member only. Their members not just every day people but people who run small business so not only customers buy their product but sell them to others in their own stores as well. While their competitor, Wal-Mart, looks to provide lowest price but inlike Costco’s they overlook the quality. While BJ tries to look pretty to their customer, Costco pay less

Publix Super Market. Describe the type of business market, its business share, financials, size and global presence.

A Business week article makes an interesting statement that Costco belongs to the very short list of companies with a culture so favorable to employees that it gives the company a competitive advantage, and it’s most likely to keep on rising over many decades. Costco sees workers as an asset to invest in, rather than a cost that must be reduced. In the U.S. Costco pays workers an average of nearly $21 per hour, almost three times the minimum wage and about twice as much of what most competitors pay. They receive great benefits and are part of a safe and healthy working environment as well. At Costco they are committed to providing its employees with opportunities for personal and career growth. Costco has implemented a strategy for a competitive advantage by having a mix of low-cost providers and differentiation. Company differentiates itself by providing consumers with products in bulk at a low per unit cost. Costco offering two types of memberships- the regular and executive membership. With an executive membership, Costco gives a 2% reward on annual Costco purchases. A holder of the executive membership receives incentives for shopping there, which leads to more sales and higher customer visits. This is just one of the many reasons customers keep going back to Costco. It has made itself a highly successful company by offering quality products and excellent customer service.

     In order to analyze an industry, it is important to determine where it is in the industry lifecycle. During the 1970’s and 1980’s the retail grocery industry was expanding at a phenomenal rate. Throughout this boom period, the number of large grocery stores was rising and forcing the existing” Mom and Pop” grocery stores out of the industry.

Currently I am employed with a company that some may say is the 'melting pot' of diversity. Working for Corporate Safeway, now Albertsons-Safeway, I can appreciate how judgement free the environment is in our work place. They are open to hiring minorities, LGBT, (Lesbian, Gay, Bisexual and Transgender), disabled veterans and that's just to name a few. Hiring a staff that is of many different cultures, nationalities and belief backgrounds is a great way to show the awareness of diversity. I am a true believer that a great business starts at the top. If management can provide their employees with the skills and knowledge of working in a diverse setting this will lead to a steady and smooth work environment. Knowing how to properly and correctly carry yourself is the first step in working with the different variety of customers or co-workers you may encounter.