Costco
Appendix Content
Company’s External Environment (External)
(2-line Conclusion: the attractiveness of the industry and key insights from 1-6) 1. Key economic and industry variables: Industry analysis (provide data to support): a. Market Size * $125 billion discount warehouse and wholesale club segment of North America consists of: Costco, Sam 's club, Bj 's. * Warehouse Club Sales In North America: Costco 56% , Sam 's club 36%, Bj 's 8% b. Scope of Rivalry * * supermarkets * department stores * drugstores * office supply stores * consumer electronics stores * automotive stores
Due to the size and capital of these discount stores and the pricing they offer consumers it was difficult for other sellers to match the low prices of a wholesale club.
2. KSF in the industry – what are key success variables and note differences across segments and geography if applicable (maximum of 4) c. Distribution-Related * Buy the majority of their merchandise directly from manufacturers * Routing it either directly to their warehouse stores or to one of the cross-docking depots * Served as distribution points for nearby stores who relocate the goods to individual warehouses in less than 24 hours. * Maximizes freight volume and handling efficiencies. d. Skills-Related * Candidates for warehouse managers must consist of: * Top-flight merchandisers * Gift for the details of making items fly off the shelves. * Having skills in people management, crisis management, and cost effective warehouse is not enough. * Employees promoted from within * Compensated well to encourage and motivate good performance.
3. Drivers of Change or PEST (maximum of 4) e. Technological Change * Increase internet use gives customer’s option to
Company’s External Environment (External)
(2-line Conclusion: the attractiveness of the industry and key insights from 1-6) 1. Key economic and industry variables: Industry analysis (provide data to support): a. Market Size * $125 billion discount warehouse and wholesale club segment of North America consists of: Costco, Sam 's club, Bj 's. * Warehouse Club Sales In North America: Costco 56% , Sam 's club 36%, Bj 's 8% b. Scope of Rivalry * * supermarkets * department stores * drugstores * office supply stores * consumer electronics stores * automotive stores
Due to the size and capital of these discount stores and the pricing they offer consumers it was difficult for other sellers to match the low prices of a wholesale club.
2. KSF in the industry – what are key success variables and note differences across segments and geography if applicable (maximum of 4) c. Distribution-Related * Buy the majority of their merchandise directly from manufacturers * Routing it either directly to their warehouse stores or to one of the cross-docking depots * Served as distribution points for nearby stores who relocate the goods to individual warehouses in less than 24 hours. * Maximizes freight volume and handling efficiencies. d. Skills-Related * Candidates for warehouse managers must consist of: * Top-flight merchandisers * Gift for the details of making items fly off the shelves. * Having skills in people management, crisis management, and cost effective warehouse is not enough. * Employees promoted from within * Compensated well to encourage and motivate good performance.
3. Drivers of Change or PEST (maximum of 4) e. Technological Change * Increase internet use gives customer’s option to