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Mgt Case Analysis Costco

401 words - 2 pages

Case C – Competition among the North American Wholesale Clubs: Costco Wholesale versus Sam's CLub versus BJ Wholesale

1. List the five (5) most significant strengths and weaknesses of Costco and the primary or support activities in which these strengths and weaknesses are found.


* Good revenue (yearly sales over $300 million generated by warehouse with $131 million actually per store worldwide
* Customer Loyalty through its loyal membership (Example of Gold Star membership)
* Low cost of product and services: low pricing was one of the best strategies of Costco with top quality ...view middle of the document...

* Locations are not really attractive, no effort have been made into the appearance of the stores
* Most focus on businesses than personal customers

2. Does the data in case Exhibit 5 indicate that Costco’s expansion outside North America (the U.S. and Canada) is financially successful? Why or why not?

From year2005 to year 2009, we can observe an increase in the revenue of the other international operations from $3,155 million in year ended August28, 2005 gradually to Year ended August 30, 2009 where it has generate $5137 million. But when looking at the overall, we see that there is decrease in Costco’s overall revenue from Year ended, August 31, 2008 to Year ended August 30, 2009.The only problem in his growth was due to a decrease of ($791 millions) in operation in Canada between 2008 and 2009. Therefore, I will say that the expansion was successful and it is definitely what makes its reputation of being the eighth-largest retailer in the world.

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