Costco's Business Model

Economic dogma states that the main objective of publicly traded firms is profit maximization. In modern times, most companies have been conducting business with that objective in mind. In the process of maximizing profits, irrefutable damage has been inflicted to the environment and also to human capital. Rimanoczy (2015) referring to the maximization of profits expressed, "Focusing on the bottom line as the ultimate priority has had an impact on rising unemployment, social crises, environmental challenges, health impacts, to name a few " (para. 4). Different scholars have proposed several methods to integrate the needs for profits with corporate social responsibility; in this context, John Elkington developed a new approach to measure corporate sustainability denominated the Triple Bottom Line. The new method expands the original corporate goal of focusing on profits by also including the assessment of the company 's environmental and social performance (Boswell, Davis, & Jackson, 2011).

Needing access to advance tracking Cabela’s sought the expertise of Impact Radius, to assist in the success of its affiliate programs and to find new opportunities for growth. Cabela’s first priority was migration to its new platform. Streamline, Cabela’s and Impact Radius worked to integrate media partners that had not been integrated with Cabela’s. The Cabela’s team quickly recruited strategic media partners not previously on platform. The new platform was needed to optimize ad spending, custom reporting as well as identify and invest in new and better growth opportunities. With no loss in revenue Cabelas’ growth was 117% over a 6 month span. With all partners integrated in new platform, Cabela’s wanted to dive into their consumers. Cabela’s

One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia. There is clearly room for further expansion into these regions as well as the opportunity for massive expansion into China and India. When Costco enters another country it does everything in its power

Directions: Please answer each of the following questions and provide examples from the text, if applicable. Each response should be at least two paragraphs in length and be written in complete sentences.

Costco and Sam’s Club is two wholesale stores that provides a wide selection of merchandise, at an exceptional price. Sam’s Club is a warehouse club that is owned and operated by Walmart. It was founded in 1983 after the Walmart founder Sam Walton. Sam’s Club operated about 660 membership warehouses across the world. Also, Costco is a large retail, wholesale club, as well. Costco was founded by James Sinegal and Jeffery Brotman in 1983 in Seattle. It is headquartered in Issaquah, Washington, and have it have 727 locations that spread across the world.

In the recent years Walmart has been far our performing its top two competitors; Costco and Target. With a market cap of 212,195,024, Walmart had beaten its competitors who remain at 65,969,279 for Costco and 43,701,237 Target (NASDAQ, Competitors). This means that for Walmart, the total market of all of their goods and services far surpasses its top two market competitors. As investors, you may ask why Costco is second to Walmart’s regarding sales. Well when we take a closer look, we see that “Walmart’s treatment of its customers and employees has not always been then best. Yet, in comparison to Costco, who is using a membership based program to turn Walmart in its head; providing industry-leading benefits to employees and satisfying customers

After working in banking and real estate, native New Yorker, George D. Dayton decides to explore Midwest markets. Dayton notices Minneapolis offers some strongest opportunities for growth and so decides to purchase land on Nicollet Avenue and forms Dayton Dry Goods Company – today known as Target Corporation (“Target through the Years”).

According to the Article Costco has a good going Mission statement. "To continually provide our members with quality food and service at the lowest possible prices" the company immediately focused on achieving success through Rapid inventory turnover management and operating efficiencies by volume purchasing. Providing a company that sells in bulks creates amazing sales opportunities for example its annual sales "1.5 million on Televisions, 300 million worth of digital cameras, and even 16 million worth of pumpkin pies during fall season" To achieve such results Costco Strategy was based around low prices, limited selection, and a treasure shopping hung environment. Pricing was important to Costco they mention in the article that they were

In today economy the #1 way to live is finding the cheapest price on high quality products. As consumers we have to save, save and save even more to live in this world. So finding the best prices that will keep as much more in our pockets is a big deal. What better place to find rock-bottom prices on top-quality items then Costco? This place called Costco is booming in the retail industry with many different unique product category selections found, under one roof. Some brad products you will find includes groceries, appliances, automotive supplies, sporting goods, jewelry, office supplies, office equipment and apparel. Costco was build to save consumers tons of money and has been known as the top place to go for jaw dropping discounts.

Costco’s business model is centered around offering a smaller range of products at incredibly low prices which attracts the consumer. In order to supplement this lowered profit margin, they require their shoppers, both businesses and individuals, to purchase annual memberships. The membership fee accounts for a majority of the company’s profit. Furthermore, Costco operates its under a wholesale warehouse style which eliminates the need for excess handling and workers in the store. The stores are stocked to carry certain big ticket, ‘limited time offer’ goods so that customers feel the need to take advantage of the deal because it may not be there when they next return. The idea behind these strategic decisions is to offer high quality name

In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets. Capabilities are complex skills or ability that a firm develops with time to perform business operations competently and utilize their resource effectively.

What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage?

Walmart has succeeded in achieving the leading position in the retail industry. Walmart now stands as the biggest retailer in the world. However, the external factors constitute pressure on the company that must be address carefully.

Businesses have been playing a crucial role in people’s lives. No matter what they go or what the occupations they are; people are drawn to get involved in businesses. However, behind the scenes of the business thriving, the environment is deteriorated each day. Many development schemes are come up with the plan related with the depletion of the environment (Shah, 2002). Because of people and environmental damages, attentions were drawn to corporations for ensuring their sustainabilities. John Elkington designed a framework called Triple Bottom Line(TBL) (cite), which allows employees or entrepreneurs to adopt it for evaluating their performances regarding three dimensions people, planet, and profit. Starbucks is one of successful corporations which uses the Triple Bottom Line. The underlying Starbucks’s policy is to "inspire and nurture the human spirit-- one person, one cup, and one neighborhood at a time" ( Herbeck, 2012). The statement which was previously mentioned shows that Starbucks does not solely concentrate upon their profits, but their stakeholders’ well beings and the environment as well. This firm tries to launch many campaigns based on the three factors of the Triple Bottom Line. As a result, when it comes to Triple Bottom Line framework, Starbucks was given the opportunity to appraise and monitor its operations.

Provide three strengths, weaknesses, opportunities, and threats (each) for Athlete’s Warehouse. Provide a brief, overall evaluation of this organization based on your findings: