Strengths
Costco has attractive low prices for goods and services in the stores and website.
Costco maintains high sales volume even with the low prices of its products.
High sales volume led to the operating efficiency by minimizing the variable costs that are low when the goods Costco sells are high.
Weaknesses
The company has a membership-only warehouse hence limiting the number of customers. Non-member customers feel unwanted in Costco.
Costco has a fewer goods and services, leading to consumers visiting Walmart with more goods and services (Gregory, 2017).
Resources
Physical warehouse and website that promote the selling of goods and services.
Costco has enough supply chain and many suppliers.
Costco cherishes the employees and therefore reduces turnover and maintains highly skilled employees (Gregory, 2017).
Priorities
Have membership that provides the customers with the best services.
Provides goods and services that are low in prices but have high quality.
Has shareholders that are rewarded for-profits, and Costco ensures the safety of the employees and suppliers.
Their primary responsibility is to serve the community by conserving the environment.
Capabilities
Costco maximizes freight volume and handles efficient serving of customers by shipping large quantities of goods to warehouses to ensure easy flow of the goods to the customers.
References
Gregory, L. (2017, March 25). Costco’s mission, business model, strategy & SWOT. Panmore Institute. https://panmore.com/costco-mission-business-model-strategy-swot
