Achieving Costco's Success

759 Words2 Pages

Operations management is considered as a psychology which cannot be overlooked in this 21st century to attain desired performance in any organization. This type of management relates to zones like planning, process design and control issues involving capacity and quality. After a very thorough research and thinking I choose COSTCO which is one of the leading whole sale and retail service providers. Costco wholesale is a multi-billion dollar company and a global retailer for eight countries. Washington CEO magazine named Costco as one of the three leading companies in the state of Washington. Costco opened the first ware house in Seattle and became the first company to grow from zero to $3 billion in sales in six years. This company follows …show more content…

This is first and important step to any organization is maintaining good quality which meets the needs and expectations of consumers. A good service with an excellent quality is the critical factor and continuous monitory effort to a business successful.
Costco’s key factor to success is to maintain high quality products and focus on attracting more customers their excellent family or business services. The ware house is known to carry only branded products with an affordable price. Their service with gold, platinum membership services with cash back points on the purchases makes it easy and accessible for customers to choose Costco as their main shopping preference.
Principle 2
Adapt new philosophy
Practicing the culture of inheriting and adaption can be another critical factor to success of the organization. This creates more jobs, healthy competition and improved service in the company. New philosophy is the creation to new strategy from which there is high possibility to …show more content…

Maintaining good quality helps the organization to avoid focus on rework and loss. Quality attracts customers and acts as detour to other suppliers. Most organizations fall for huge supplier list and spend their time in negotiating for costs over quality. It is a good practice to maintain minimum of approved most trusted suppliers than to promote huge suppliers list.
As Costco concentrates more on quality, the company doesn’t promote a huge list of suppliers. Costco has paired up with Kirkland signature brand to provide equal to or even better than some high end brands. Most of the products in Costco are through Kirkland which helps the company to focus on constantly improving the quality and reduce the dependency of inspection. Kamauff states that, “If quality is to be truly a strategic issue for an organization, the people in that organization must commit to continuous improvement” (p. 85).

Conclusion
Costco is a named for its continuous growth despite of having Wal-Mart or Target that are considered as huge competitors to the company. It’s business model works well for today’s economic and high-end consumers. Their minimal marketing strategy brands them unique and makes them focus on improvement of the organization and set their goal in the

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