What are the chief elements of Costco’s strategy? How good is the strategy?

The key elements of Costco’s strategy are

 Ultralow prices – keep customers coming in to shop with low prices and thereby generating
big sales volumes.
 Items that would appeal to the company’s clientele and likely sell out quickly.
 A limited product lines
 Volume purchasing – rapid inventory turnover
 A “treasure hunt” shopping environment
 Increase sales at existing stores by 5 percent or more annually
 Strong emphasis on low operating costs
 Expansion of its geographic network of store locations

Its competitors share a similar strategy of selling in high volumes at low cost.

Costco business strategy seems to be working as well as planned, modifying the business strategy
would be a mistake by the company.