You are on page 1of 20

Costco’s business model differs from

others such as Walmart and Sam’s


Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco’s business model differs from
others such as Walmart and Sam’s
Club because of Costco’s simple
yet effective strategy. This strategy
entails treating employees well,
limiting the number of items they sell,
and keeping markups low. They are
utilizing their competitive advantage
of sustaining low costs to keep
customers coming back for more.
Costco does this by limiting the
number of brands sold at their
locations.
This benefits their company by
allowing them to purchase items in
large quantities thus giving them the
upper hand to obtain discounts. These
discounted items are then sold in their
warehouses to members at a
low price. The company makes it a
priority to price items at no higher
than fifteen percent of purchasing
price. I think the strategy that Costco
is using works because people love
low prices. If they are trying to
buy something at low cost, often what
happens is that certain products and
sales varies by retailers. Costco
is using this knowledge to obtain a
large customer base. They combine
the fact that their prices are lower
than most and the element that almost
everything can be found in one place.
Costco is eliminating struggles
that real people face. I myself use to
purchase groceries from a different
store than I purchased clothes
from. Costco has made a one stop
shop where customers can purchase a
washing machine and ingredients
to make dinner at the same place. It is
simple, convenient, and cheaper than
most stores. For these reasons,
I am a loyal Costco shopper for the
last three years now
Costco Sam’s club
Publicly-traded company Subsidiary of Walmart
Greater international Have more stores in the
presence US
Aggressively open new Keep its store count
warehouse stores over relatively steady over the
the years last few years

Cheaper membership
Cheaper price
fee

 Costco is a publicly-traded company, while Sam's Club is a subsidiary of


Walmart.
 Costco has 795 stores worldwide with 552 of those in the U.S, while Sam's
Club stores are limited to the U.S with 599 stores across the U.S.
 Costco’s prices are slightly lower—thanks, in part, to its private branded
products (e.g., Kirkland). Kirkland items are often cheaper than most other products, but
they're still made by big-name companies, such as Starbucks (SBUX), Duracell, and Kimberly-
Clark (KMB) while Sam’s Club is much more focused on popular (and often
overpriced) name brands.
 Sam’s club’s membership include access to its stores, as well as its fuel
and offers specific discounts for certain services. Meanwhile, Costco’s
membership gives access to its stores, too along with fueling stations
(which often offer lower prices than other fuel stations), pharmacy and
rental car options. And for their business customers, Costco offers
partnerships with payment processing, health insurance, bottled water
delivery, and check printing services.
After these comparison, it can be indicated that Costco’s business model differs from others such as
Sam’s Club because of Costco’s simple yet effective strategy. They are utilizing their competitive
advantage of sustaining low costs to keep customers coming back for more. Costco does this by limiting
the number of items sold at their locations. This benefits their company by allowing them to purchase
items in large quantities thus giving them the upper hand to obtain discounts. These discounted items
are then sold in their warehouses to members at a low price. The company makes it a priority to price
items at no higher than fifteen percent of purchasing price.

I believe the strategy that Costco is using works because people love low prices. If they are trying to buy
something at low cost, often what happens is that certain products and sales varies by retailers. Costco
is using this knowledge to obtain a large customer base. They combine the fact that their prices are
lower than most stores and the element that almost everything can be found in one place. It is simple,
convenient, and cheaper than most stores.

First and for most, Anywhere you go in the world you will be
able to find a Starbucks. The biggest competitive advantage
they have over there competitor's is their size as a company
and the popularity. You will find every type of person you can
think of in a Starbucks, why? Because they know that their
paying for a coffee that they know will be good. That's the
biggest advantage they have over any coffee house. Another
advantage Starbucks has is that they have seasonal
drinks, during christmas time they showcase they eggnog
latte. The company know that they have regular customers,
but with them coming out with seasonal drinks attracts people
to come and try their "drink of the season".They do not just
sell coffee, Starbucks sells a very good tea as well which is
call Tazo. Tazo teas come in any flavour you can think of and
are at an affordable price. In the end Starbucks will alway
have that edge on all the other coffee house's because they
are still coming up with new ways to make your visit at
Starbucks rememberable.

You might also like