Costco's Value Chain Analysis Porter

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Costco’s goal is to try and sell first-class merchandize at the lowest price possible to the customers. Costco has many big competitors including Wal-Mart Stores that own Sam’s Club, The Target Corporation and The Kroger Co. who owns Ralphs and FoodsCo. Costco figures out the customers buying habits and needs so they can buy and sell the right product that match’s what people want and need. They need to have a productive supply chain, that allows Costco to measure and identify through their ads and marketing efforts what kinds of products are successful or not. Costco uses Porter’s value chain that uses five marketing services. They are power of buyers, power of suppliers, threat of substitutes, threat of new competitors, and industry jockeying

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