Costco is an international lucrative wholesale corporation, and is a membership only, warehouse club that sell everything. The warehouses are pioneered to help small to medium sized business, to buy reduced priced items and resale them for everyday businesses. Individual members can also buy selective items and even buy them in bulk to suit their personal needs. Costco 's business model is called a subscription that means customers who want to shop at the store need to subscribe as a member to proceed, Costco provide various types of membership programs that delegate different perks, a trade membership which is standard (£24 annually), they also sell products at low prices, they have a limited selection of quality products and a wide range
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The employees will be focusing on hitting the businesses daily goals and turnovers so that Costco 's vison stays alive. Costco employees are paid a lucrative wage of $20 an hour that is more than double the average wage which is of $11.39 for a retail workers. Costco also provide their employees with vast amounts of benefits, including: medical insurance, dental care, employee assistance programs etc. These benefits and wages will make Costco employees work harder and will be hesitant to leave the …show more content…
There are only a few big firms effecting the market, right now which are, Sam 's club, BJ 's wholesale club, Makro and Price Smart, but Costco is still a leading warehouse club. Despite still having massive market power they still need to stay in shape and make sure that their strategies, technology marketing, capital and innovation are used to their fullest potential in correct manner, so they stay ahead of their competitors and keep on innovating.
ENVIROMENTAL FACTORS (PESTLE)
PESTLE stand for Political, Economic, Social/Cultural, Technological, Legal and Ethical. PESTLE analysis is used by companies to help them understand, identify and analyse the company so that they can achieve optimal performance, depending on the organisation these factors have different importance 's.
• Political
The political factor has a vast presence on any type of organization. The government has set rules and regulations that have to be met such as environmental regulations, tariffs, trade restrictions, and legislation. For a retail organization like Costco one vast issue is if the government raised minimum wages for employees, Costco already pay their staff double the minimum wage so if you have to increase it again then financially there could be a
The employees will be focusing on hitting the businesses daily goals and turnovers so that Costco 's vison stays alive. Costco employees are paid a lucrative wage of $20 an hour that is more than double the average wage which is of $11.39 for a retail workers. Costco also provide their employees with vast amounts of benefits, including: medical insurance, dental care, employee assistance programs etc. These benefits and wages will make Costco employees work harder and will be hesitant to leave the …show more content…
There are only a few big firms effecting the market, right now which are, Sam 's club, BJ 's wholesale club, Makro and Price Smart, but Costco is still a leading warehouse club. Despite still having massive market power they still need to stay in shape and make sure that their strategies, technology marketing, capital and innovation are used to their fullest potential in correct manner, so they stay ahead of their competitors and keep on innovating.
ENVIROMENTAL FACTORS (PESTLE)
PESTLE stand for Political, Economic, Social/Cultural, Technological, Legal and Ethical. PESTLE analysis is used by companies to help them understand, identify and analyse the company so that they can achieve optimal performance, depending on the organisation these factors have different importance 's.
• Political
The political factor has a vast presence on any type of organization. The government has set rules and regulations that have to be met such as environmental regulations, tariffs, trade restrictions, and legislation. For a retail organization like Costco one vast issue is if the government raised minimum wages for employees, Costco already pay their staff double the minimum wage so if you have to increase it again then financially there could be a