Costco Swot Analysis Paper

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Competitive Environment: The discount stores industry is highly competitive. Costco Wholesale Corporation directly competes with Wal-Mart Stores and its subsidiary Sam‘s Club, Target Stores, BJ's Wholesale Club, and indirectly competes with internet-based business, Amazon.com. Wal-Mart Stores is an American company that was founded in 1945. It operates in many countries worldwide through Wal-Mart U.S., Wal-Mart International, and Sam's Club.1 Target Corporation is also an American company which was founded in 1902 in Minneapolis, Minnesota.2 It operates general merchandise stores in the United States and Canada. BJ‘s Warehouse Club is a privately owned company that operates within only 15 American states.3 These stores compete against …show more content…

For example, some locations will not allow companies to sell alcohol at the wholesale companies and at gas stations like Washington, D.C. Both products most of wholesale companies have available to the consumer which is a reason the location have a large role in the legal process. To keep a competitive advantage Costco must find a way to provide all the products and services they have available to every location. In Washington, D.C where it is illegal to sell alcohol and gas in the same location, Costco came up with a plan to split the construction site into two and provide both products with a wholly owned …show more content…

Mostly by Gallup and The Economist, these factors are a large determinant in the health of an industry. While it is true that most contemporary economic factors point to negative trends in the well-being of the industry, there are always good signs to be found. Rampant unemployment, underemployment, stagnant wages, and lowering labor-force participation rates are just a few reasons why America might be in trouble. However, an increasing GDP at an increasing rate and the fact that America ‘s stock markets are recovering is cause for hope indeed. Currency rates are another thing that may need to be looked at. Unemployment and underemployment are measurements of the quality of work that exists for Americans. If too many people are filing for unemployment or consider themselves underemployed, clearly, they do not have the discretionary income to be buying too many things.
Stagnant wages are another problem. More and more people are becoming unhappy with the wage gains and the median income level is at its lowest point since 1998.
The Economist also reported some optimistic statistics as well, however. The real GDP in America has increased by 3.2% from the second to the third quarter in 2017, a growth rate change of almost 50% in a positive direction! This is important because GDP is an indicator of all sales within a country, and retail has a large share of the country ‘s

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