External Analysis for Costco Wholesale Corporation

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EXTERNAL ANALYSIS FOR COSTCO WHOLESALE CORPORATION Introduction Costco or Costco Wholesale Corporation (CWC) is an Fortune company based in America. It operates various membership warehouses in the country with an aim to offer low prices on the selective and speciality brands in the wide range of products. It is one of the largest of its kind. Stores Org in 2010 ranked it among the top three largest retailers in the United States and it is currently the 9th largest retailer in the world (Stores media, 2009). It was also listed as the largest retailer of wine in the world (WBI, 2007). It has direct network of merchandize through which the company buys its products directly from the manufacturers and then send them to its warehouse facilities directly. Its warehouses are of average size over hundred and forty thousand square feet and works seven days a week on sixty nine hour per week basis. The stocks of the company are traded in the NASDAQ under the symbol COST. SWOT Analysis SWOT Matrix The SWOT analysis of Costco Warehouse Corporation is as follows: Strengths ● ● ● ● Weaknesses ● ● ● Strong management Marketing strategies Diverse offerings Company policies Opportunities Expansion E-commerce Governmental stability Huge business setup Meticulous decision making Weak advertising Threats ● ● ● ● ● ● Economic conditions Not enough diversification Fierce competition Strengths Costco Warehouse Corporation has very strong managerial grounds. The Majority of its top management officials are “home grown” which means they started and excelled their carriers through the company Warehouses and learned how to do business at Costco (Costco, 2011). The employee turnover rate is very low as compared to the other retailers in the industry, for example, nearly seventy percent of Wal-Mart’s employees leave after completion of their first year (PBS, 2007).

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