Problem:
After reading the SWOT analysis of Costco, please help me to make a short comment about this company.
COSTCO:
Strengths:
The Costco shopping experience is a giant among 'one-stop shopping' stores. "Costco's warehouses present one of the largest and most exclusive product category selections to be found under a single roof" (Costco 2004, p2). An individual, family or business representative can enjoy the convenience of shopping for a variety of items from groceries to jewelry and from electronics to office supplies all in one location. Costco sells "top-quality national and regional brands at prices consistently below traditional wholesale or retail outlets" (Thompson, Strickland, and Gamble, 2008, pp. C-5). The prices of the items at Costco are very appealing, especially in the current economy. Items are purchased in bulk which provides a savings to the shopper in the long run.
Weaknesses:
The Customer Service area at Costco is at the front of the store. When a consumer has an issue at the back of the store a major inconvenience is experienced. While there are people with Costco vests on giving out food samples, they are volunteers; not employees. Therefore, they would be of little assistance to the consumer with an issue at the back of the store.
Opportunities:
Costco continues to expand options to its consumers. These options include pharmacy services, photo services and travel services.
Threats:
Costco has two competitors in the discount warehouse market - Sam's Club and BJ's Wholesales Club. "However, warehouse clubs also competed with a wide range of other types of retailers, including retail discounters like Wal-Mart and Dollar General, supermarkets, general merchandise chains, specialty chains, gasoline stations, and Internet retailers" (Thompson, Strickland, and Gamble, 2008, p. C-14). The threats for Costco comes from all angles. By Costco being a large "one-stop shopping" environment, it competes against many businesses who sell the same or similar products.