Costco Essay

1499 Words6 Pages
Define the elements of the Internal Analysis utilizing SWOT as per the chapter 3 and the charts on pages 42 & 43. Be as detailed as possible. STRENGTHS * Higher Income Shoppers * Low employee turnover * High salary * Strong management * Private Brand label (Kirkland Signature) * Return Policy- hassle free * Attracts business customers | WEAKNESSES * Modify aging stores * Vendor satisfaction * Ambitious expansion plan * Lax quality control * Strong dependency on providers * Word of Mouth Advertising * Low margin * Leader-James Senegal 79 | OPPORTUNITIES * Expansion overseas and market presence * Increase online sales * Ancillary services * Private Brand label (Kirkland Signature) * Attracts business customers * Expand wholesaling-Internet Sales * Consumer-travel, optical, auto * Financial, * Insurance * Pharmacy * Recycle | THREATS * Increasing competition * Subprime crisis * Low consumer confidence * Low promotional activity * Diversification * Expand wholesaling * Customers have high mobility | Internal Factors STRENGTHS The strengths of Costco’s strategic plan include strong management, low employee turnover, high compensation, strong customer business base, strong private brand (Kirkland) and generous return policy. The company policy is committed to promoting from within their own ranks, filling as many as 86% of higher-level openings in their stores. This allows them to be competitive by staffing their stores with knowledgeable employees which increases customer satisfaction as well as decreasing staff turnover. Costco also offers the highest salary of their competitors by almost 40%, which also accounts for the low staff turnover. There are generations of families that are a part of the Costco employees who also serve as ambassadors for the companies family friendly work

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