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Friday, February 15, 2013

Costco

 Define the elements of the Internal Analysis utilizing SWOT as per the chapter 3 and the charts on pages 42 & 43.  Be as critical as possible.

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STRENGTHS * Higher Income Shoppers * Low employee turnover * High net income * Strong management * Private Brand label (Kirkland Signature) * remember Policy- hassle free * Attracts business customers| WEAKNESSES * Modify aging stores * vender enjoyment * Ambitious expansion plan * Lax role control * Strong dependency on providers * Word of lip Advertising * Low margin * Leader-James Senegal 79 |
OPPORTUNITIES * Expansion afield and market presence * Increase online sales * Ancillary work * Private Brand label (Kirkland Signature) * Attracts business customers * Expand wholesaling-Internet gross revenue * Consumer-travel, optical, auto * Financial, * Insurance * Pharmacy * Recycle| THREATS * Increasing contestation * Subprime crisis * Low consumer confidence * Low promotional activity * variegation * Expand wholesaling * Customers have high mobility|

Internal Factors
STRENGTHS
The strengths of Costcos strategic plan include robust management, pathetic employee turnover, high compensation, strong customer business base, strong private brand (Kirkland) and generous return policy. The company policy is committed to promoting from within their profess ranks, filling as many as 86% of higher-level openings in their stores. This allows them to be competitive by staffing their stores with knowledgeable employees which increases customer satisfaction as well as decreasing staff turnover. Costco overly offers the highest salary of their competitors by almost 40%, which also accounts for the low staff turnover. There are generations of families that are a case of the Costco employees who also serve as ambassadors for the companies family friendly work environment.

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