Value Chain Analysis For Costco - 1000 Words

The purpose of this paper is to do a value chain analysis of Costco, identify their resources and capabilities, to conduct a SWOT analysis to identify the opportunities in which they are lagging and to form a strategy to move forward using the recourses and capabilities in the direction of utilizing those opportunities. Value Chain Analysis for Costco Conducting a value chain analysis provides a snapshot for identifying a firm’s relative competitive performance, core competencies, and for focusing on customer centric activities. Costco’s customer driven focus allows primary and support business activities to work in unity creating a stronger competitive advantage and thereby increasing profitability. Profitability and shareholder value rely on coordination of both sets of business activities to create a firm’s competitive advantage. Costco’s infrastructure skills and capabilities support operations for achieving low cost global leadership in warehouse retail sales and better than industry average. Costco’s culture strives to provide a limited variety of quality merchandise goods from private label and some well established brands. Costco’s value chain provides a diversified product base to a large globally diverse consumer base. Costco is industry leader to Target, and sometimes loses positioning to Wal-Mart’s Sam’s Club. Costco’s culture type is at Level 3, and positions the company for short-term and long-term success (see Table). Table Value Chain Analysis BusinessShow MoreRelatedValue Chain Essay752 Words   |  4 Pagesï » ¿Value Chain Analysis-Costco Corporation   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Brief on the Organization Costco is among the leading global retailers which provide customers a wide range of merchandise, ranging from small to well-known brands. The company began operations in 1983. Over the years, Costco has been a retailer in low cost membership-only leader, in warehouse club of merchandise. Moreover, Costco does not offer frills warehouse business models as its competitors do.   Costco’s major competitorsRead MoreCompettive Analysis Costco Wholesale Company1630 Words   |  7 PagesCompetitive Analysis SWOT analysis of Costco Wholesale Co. Costco Wholesale Corporation is the world’s largest membership warehouse club chain based on sales volume. 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