Costco Wholesale Corporation is the second biggest retailer in the world after Walmart. The SWOT analysis examines the internal strategic factors strengths and weaknesses and the external strategic factors opportunities and threats relevant to the business. The strengths in the SWOT analysis model are the capabilities internal strategic factors that firms use for profitable business. As the leading membership warehouse club chain in the United States, Costco Wholesale Corporation is strong because of its market presence. Another strength of Costco is its Kirkland Signature brand, which consumers view as a label of quality.
Costco Wholesale SWOT Analysis - Panmore Institute
Margarita Torres, an investor in Costco, added the corporation to her portfolio in She now finds it time to reanalyze the company to gain insight on whether her investment in Costco is still worth holding onto or if it is time to sell. First, was an industry overview of the retail players looking at the different retail types of stores. Included were department stores, discount stores, wholesale clubs, and online retailers.
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Why or why not? Generating high sales volume and rapid inventory turnover by offering fee-paying members low prices on nationally branded and private-label products. Yes, it is appealing because the fees paid by members allowed for sufficient supplemental revenues while the turnover rates allowed Costco to receive cash for inventory before it had to pay many of its merchandise vendors. How good is the strategy?