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How does e-commerce affect the global market
Marketing strategy of costco
Chief elements of Costco's strategy
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COST (Costco Wholesale Incorporation)
Costco manages membership warehouses and sells branded and private labeled products in a variety of categories. The company offers packaged foods of large quantity, apparel, electronics, garden/patio, health/beauty aids, furniture etc. Costco is also engaged in the business of pharmacies, food courts, photo processing centers; which are all implemented in the warehouses. In addition, Costco provides membership services to its customers with the choice of goldstar or business.
I chose Costco as one of my four companies because it is company with versatile products that satisfies the needs of people. In addition, Costco is cost effective because all food merchandise are of larger quantity than ordinary
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(EBAY)
Ebay is an American corporation with an online auction and shopping website that allows people to engage in the business of selling and buying goods. It is headquartered in San Jose California, and is a multi-billion dollar company managed in thirty countries. Many people mistake ebay.com for a free website, but that is false. Ebay makes money by charging an invoice seller fee on the basis of if they have sold or listed any items.
I chose Ebay Inc. as one of my four companies because I am familiar with their website as a buyer. I understand the easiness and concept of Ebay of finding affordable items, and bidding according to your liking. I believe Ebay will do just fine stock wise since it a site used everyday to initiate business, and because many people find it to benefit them financially.
GoPro Inc.(GPRO)
GoPro Inc. is an American corporation that sells and manufactures electronics, specifically HD compact cameras. These cameras are universal in capturing photos/videos in water, snow, ice, dirt etc. Nick Woodman was the founder of the country and has generate million dollars worth of salary from his product. The camera’s purpose is to film extreme action video photography and is commonly used for
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
Costco Wholesale Corporation was an uncommon type of retailers called wholesale clubs. These clubs differentiated themselves from other retailer by requiring annual membership purchase. Especially in case of Costco, their target market is wealthier clientele of small business owners and middle class shoppers. They are now known as a low cost or discount retailer where they sell products in bulk with limited brands and their own brand. The company is competing with stores like Wal-Mart, SAM’s, BJ’s, and Sears.
Costco was founded on September 15th, 1983 by Jeffery Brotman and James Sinegal (Chesley). It became renowned for its warehouse club retail model, pioneered by former competitor Price Club. After a major merger in 1993 with Price Club, Costco expanded to 206 locations, doubling the size of the company (“Costco Wholesale Historical Highlights”). The decision was based on the fact Costco and Price Club shared similar business philosophies, operations, and the looming threat of being taken over by Sam’s Club. Operating as PriceCostco, international expansion began with development of stores in Mexico, the opening of two stores in England, and the licensing of a Price Club in South Korea ("Costco Wholesale Corporation").
Promotion: Costco doesn’t have any conventional marketing/ promotion strategies like their competitors as they are not big on advertising. They email and mail their members flyers and product descriptions which help them maintain their customer retention. However, they don’t actively advertise to new customers, primarily relying on their current customers to advertise by word of mouth like Kimberley Peterson, the
Our decision is to invest in Wal-Mart. The choice for Wal-Mart is on the basis that their functional-level strategy is really robust, nevertheless of the fact that they do not treat their employees well. The fact remains that they are financially stronger, have a better business-level strategy, and have a corporate-level strategy than Costco. Costco v. Wal-Mart: What must we learn about them? Let start with Costco. Costco is Wholesale, Retail Corporation which operates an international chain of membership distribution centers that provides quality, brand name merchandise at noticeably more affordable rates than a conventional wholesale or retail sources. Costco 's warehouses display the largest and great product categories such as groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office
GoPro was founded by Nicholas Woodman, his earliest vision was to create a camera strap that took already existing waterproof camera’s and attached them to surfer’s wrists. After his dot com company Funbug failed in 2001, he took a 5 month surf trip to Australia and Indonesia, during this trip he realized that his idea of a wearable camera needed to be a product that was all-in-one, comprising of the camera, the strap and the waterproof case. Two years later Woodman had his first camera, the GoPro 35mm Hero. Woodman officially launched his new product in September 2004 at the San Diego Action Sports trade show (Forbes, 2013).
In the warehouse segment, Wal-Mart’s Sam’s Club competes harshly with Costco. Costco has fewer warehouses but greater sales and revenues. Costco customers also shop at Costco more frequently than Sam’s Club customers and, on average, spend more each visit as well. Costco’s dominance may be the result of better innovation. Costco offers luxury items and was the first to sell fresh meat and produce, and gasoline. This is important because innovation is a key factor in assessing competitors in an industry.
The top two reasons for such success in ranking first in retail store market, is because Wal-Mart is convenient globally and so are there prices in the competitive market . Wal-Mart has three segments which are superstores, discount stores, and Sam's Club stores, all of these are scattered in the United States, Canada, Mexico, Europe, Brazil, and Asia. One downfall was from Sam's club because too many were opening all over internationally it decreased the number of customers per location. Overall despite the company's decline on Sam's club sales, the Corporations did well over all with the figures brought in and conditions.
Non-monetary rewards: Costco only hires the best of the best. There are employee contests with great prizes; it is fun to work there. Monetary rewards: the best pay and benefits in the industry, bi-annual bonus for hourly employees, and free membership. Also, paid vacation, paid sick days, paid
Costco has many competitors with the primary two being Sam’s Club, a wholesale business being managed by Walmart, and BJ’s wholesale club. Sam’s Club is offering the same services as Costco. They offer their customers lower prices than traditional stores and like Costco they sell their products in bulk to keep members interested. What makes them a threat to Costco is the cost of becoming a member to shop at their stores. For Costco’s basic membership, known as a Business membership, a price increase had to occur to outweigh price increases from their suppliers. This led to the Costco Business membership annual fee being set at $55. When looking into the case study assembled by Thompson, Peteraf, Gamble, and Strickland (2014) they point out that Sam’s Club is able to offer similar benefits ...
Costco also provides great career opportunities. Most of their executives and manager start working from the bottom. They very seldom hire managers. Everyone starts from the bottom, because they want employees to move up based on their achievements, hard work and talent. They have a rule that eighty-five percent of the promotions should go to employees within the company.
According to an IDC study, the internet user in Latin America area will grow 40 percent per year between 2001 and 2005. The online trade was expected to be worth $72 billion in Latin America by 2005. Mexico and Brazil would be the largely dominated. I would say Mexico is the second market that eBay will enter. However, eBay did not know much about the region, language, and culture. Therefore, eBay needed a partner before the second step. MercadoLibre.com and deRemate.com are the two main possible options.
eBay needs to transfer its competitive advantage in the online auction industry into the area of
Finally, eBay will be able to compete successfully against new, more diverse competitors such as paid search engines if it forms strategic alliances that will bring value to both firms. EBay can offer marketing and promotional opportunities to paid search engines and capitalize on attracting more customers to its online platform by partnering with search engines to be the premier result for online trading. The company will need to continue monitoring up and coming paid search engines to ensure it can exploit all the opportunities from a paid search engine partnership before its rivals can.
E-commerce definition: E-commerce is about the sale and purchase of goods or services by electronic means (Chan et al, 2004). This is one of the most simple, basic and self explanatory definition of e-commerce.