Question

What is costco location strategy? Why have they chosen this strategy? Where does store typically locate its store? Is this easily accessible for customer? I also need sources of webpage

Answer 1

Costco Wholesale Corporation’s case shows that the business continues to grow and expand. The company now has operations in overseas locations, such as Taiwan. The firm is among the biggest retail organizations in the world today. As a retail firm, Costco depends on consumer purchasing capacities. Consumer perceptions also have a significant impact because competition is high in the retail market. Competition from firms like Walmart is especially notable. Costco must maintain competitive advantage to ensure long-term viability. At present, the ability of this company to continue growing and expanding is based on its affordable quality goods and services.

Strategy:

Costco’s generic strategy is cost leadership. This strategy entails maintaining the lowest prices possible. Retail giants like Walmart also use the cost leadership strategy. Costco’s strategy also combines the membership warehouse club business model to differentiate it from other retail firms.

The company’s business model is a core factor that enables Costco to follow its mission. In fact, this business model aligns with the company’s mission. The generic strategy of cost leadership also agrees with and is needed to sustain Costco’s business model.

Easily accessible:

Delivery is available to most businesses within the greater metropolitan areas of Atlanta, Chicago, Denver, Las Vegas, Los Angeles, Minneapolis-St. Paul, North Jersey, Orlando, Phoenix, Salt Lake City, San Diego, San Francisco Bay, and Seattle. The delivery area is defined by ZIP codes. To determine if your business is eligible for delivery, click "Set Delivery ZIP code" in the top left below the Costco Business Center logo.

Order by 3 p.m. Monday through Friday to have your items delivered as early as the next business day. Orders can be scheduled for a future delivery date up to a week from order placement. There is no minimum order for delivery. Orders of less than $250, before taxes and fees, will be charged a $25 delivery surcharge.

References:

• Cascio, W. F. (2006). Decency means more than “Always low prices”: A comparison of Costco to Wal-Mart’s Sam’s Club. The Academy of Management Perspectives, 20(3), 26-37.
• Costco’s Official Website.
• Costco Wholesale Corporation. The Costco Story.
• Courtemanche, C., & Carden, A. (2014). Competing with Costco and Sam’s Club: warehouse club entry and grocery prices. Southern Economic Journal,80(3), 565-585.