Costco Wholesale Corporation: Mission, Business Model, and Strategy

In: Business and Management

Submitted By iboder
Words 663
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Costco Wholesale Corporation: Mission, Business Model, and Strategy

Problem Identification
a) There is an advertising problem b) For purchasing the products, membership cards are required c) In the warehouses, product locating is not successful d) North America has a major market for the sales e) Customer trends should consider

Analysis of Problems
a) Advertising
1) The advertising is not successful
2) Social media are not used enough
3) Company image has been going down after Mr. Sinegal leaves b) Membership Cards
1) Middle lower class does not accept to use membership cards
2) At this economy, yearly payment is too much for some people
3) For entering a new market, card system is a handicap

c) Warehouse System 1) Shelf system is not effective for selling the products 2) Big aisle gives negative energy to the customers d) North American Market 1) For belonging to this market is a big weakness for the company 2) Competitors have some advantages like gasoline companies. e) Customer Trends 1) For selling the high quality cannot be standard for this kind of market Alternative Solutions
a) Alternative 1: Spending More Money for Advertising
Pros:
i. It will definitely affect the sales in a good way ii. On the other hand, the company is not going lose customer to Sam’s Club and BJ’s Wholesale iii. It will help to create a new image for the company
Cons--
i. At the recession time, this kind of investments has some risks ii. Trying to change the image can be negative idea for the customer side

b. Alternative 2: Membership card system can be checked again
Pros--
i. Most of the people do not…...

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