What Is Costco's Strengths And Weaknesses

Costco is one of the most successful businesses in the U.S started in 1983in Seattle. Being the second biggest retailer in the world, the company itself is built around quality. This has brought them so far to be a very successful business. To show this, here is a S.W.O.T. analysis on Costco Wholesale. Strengths: Costco revolves around the idea of larger items at lower prices. This is in fact a strength because this appeals to everyone in the sense that there are amazing deals. Everyone loves sales and deals, and at Costco, it’s like there is a sale on every item, every day. Costco also has over 700 stores throughout the world which include the U.S., UK, Japan, South Korea, Canada, Mexico, etc. this creates an increase in total sales and allows them to gain more profit. Costco also has about 3600 SKU’s (stock keeping units) in every store. Which just relate to the amount of different products they have in each store. This low amount of different items makes everything easier manage and operations therefor run smoothly.
Most of the annual income comes from memberships that are required for you to shop there. This is good for the customer since they are getting a large quantity of something at a low price, but bad for Costco as a whole since they are making less money than they could. Costco also gets most of its products from a private label known as Kirkland Signature, which means that there is little variety in products for customers to