COSTCO
1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?
Costco’s business model refers to a protocol used to generate a high turnover of sales with high volumes of purchase by reducing the cost of products for only a limited stock or commodity. The model articulates on quality management through a move that aims at luring the attention of new members and retains existing customers. Costco uses the value of membership to create a bond with their customers. This protocol ensures a provision of a broad customer base and provides easiness of product selection. Moreover, the model promotes the business with a one on one reach to their customers unlike the models used by other company’s min advertising their products. The model places its customers in membership categories based on their incomes and savings. By luring its customers with bargains, the Costco’s management aims at persuading their customers to purchase more than their intention. With an account of 60% of the sales is through the wholesale platform, the management seeks to concentrate on those with a deeper pocket fit for impulse buying. According to ABC News, 2005, “the poor and the unemployed are not invited to …show more content…
An integrated human resource management protocol has seen a significant working connection with the employees to the customers. Jim Sinegal has used the values of high value to consumers and affordability. With the reduced price tags, Jim Sinegal has a profound capability of maintaining customers and also attracts new customers over time. The CEO has stood in captivating the entire market in providing high-value products at low prices to a large number of users efficiently. Moreover, the company can now identify a broader and profitable market base compared to other wholesalers in the world (Peteraf,
1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?
Costco’s business model refers to a protocol used to generate a high turnover of sales with high volumes of purchase by reducing the cost of products for only a limited stock or commodity. The model articulates on quality management through a move that aims at luring the attention of new members and retains existing customers. Costco uses the value of membership to create a bond with their customers. This protocol ensures a provision of a broad customer base and provides easiness of product selection. Moreover, the model promotes the business with a one on one reach to their customers unlike the models used by other company’s min advertising their products. The model places its customers in membership categories based on their incomes and savings. By luring its customers with bargains, the Costco’s management aims at persuading their customers to purchase more than their intention. With an account of 60% of the sales is through the wholesale platform, the management seeks to concentrate on those with a deeper pocket fit for impulse buying. According to ABC News, 2005, “the poor and the unemployed are not invited to …show more content…
An integrated human resource management protocol has seen a significant working connection with the employees to the customers. Jim Sinegal has used the values of high value to consumers and affordability. With the reduced price tags, Jim Sinegal has a profound capability of maintaining customers and also attracts new customers over time. The CEO has stood in captivating the entire market in providing high-value products at low prices to a large number of users efficiently. Moreover, the company can now identify a broader and profitable market base compared to other wholesalers in the world (Peteraf,