VRIO Framework
Value
Costco offers the value of bulk pricing, in addition to, its influence with suppliers to arrange a reasonable deal for the end consumer. Although this could be an easily imitated trait, it still offers a considerable deal of consumer value.
Rarity
The limited levels of access through memberships with the promise of lower prices to make up for the initial upfront cost. By requiring membership, Costco customers belong to a private club. The company provides the ability to use economies of scale to bulk buy a large amount of goods at low prices.
Imitability
Although the price efficiencies of Costco can be copied across multiple channels, the membership association with the brand, the goods offered, and the exclusivity create
Value
Costco offers the value of bulk pricing, in addition to, its influence with suppliers to arrange a reasonable deal for the end consumer. Although this could be an easily imitated trait, it still offers a considerable deal of consumer value.
Rarity
The limited levels of access through memberships with the promise of lower prices to make up for the initial upfront cost. By requiring membership, Costco customers belong to a private club. The company provides the ability to use economies of scale to bulk buy a large amount of goods at low prices.
Imitability
Although the price efficiencies of Costco can be copied across multiple channels, the membership association with the brand, the goods offered, and the exclusivity create