Comparing Costco's Strengths And Weaknesses

When evaluating Costco’s strengths and weaknesses, we have too at Porters Five Forces. One being bargaining power of its customer, which is weak because of the exclusive prices Costco brings to the table. The threat of new entrants is also weak because Costco have majority of the market share. Another is the threat of a substitute product is possible because of the strong position that its competitors hold. Their rivalry is extremely aggressive. The last Porter’s force is bargaining power of suppliers. This is also weak because suppliers compete with each other to work with Costco.
The SWOT analysis is key in identifying pros and cons of a company. In regards to Costco its strengths are its store locations are in prime area’s that maximize