Costco Case Essay

384 Words2 Pages
Costco Case 1. Although customer’s repeatedly ask Costco to carry other items outside its price/ quality zone Costco should not give in and carry those items. Costco is dedicated to providing the best quality products at the absolute best value for customers and if they go outside that zone it would affect the way business is done and cost past down to customers. According to Costco’s website “their buyers are the best in the business at negotiating added values and extras not found anywhere else. Plus, our bare-bones operation keeps costs low, so the prices remain low and your savings enormous.” 2. Most of the items on Costco’s website are available only through Costco. Costco should not expand its online product selection to include more commonly available products because Costco on line store model should reflect their Stores. Costco carry only about 4000 products which is a smaller fraction to the 100,000 thousand items other warehouse clubs carry. Costco aim is to be a cut above by offering many unique or unusual items. Their marketing strategy for stores is like a treasure hunt. This high and low shopping experience is a powerful elixir for middle class shoppers and the same experience is carried out on the on line site by not offering commonly available products to keep customers hunting to entice that I have to get it now it may not be here again shopping experience. 3. Costco Wholesale is the world’s largest membership warehouse club. Over 600 locations worldwide 18 locations currently operate in Japan. Although Costco sees possible 50 stores in Japan it should not compromise there business model to fit a conventional department store to grocery store to just fit a store on land and expand locations. Costco, key site criteria, is set to require the following: * Land Requirement: 7,000 tsubo or more * (anticipated building footprint

More about Costco Case Essay

Open Document