05.

Comparison With ‘ Wal-Mart ‘ Case

What is Wal-Mart?

warehouse-type
large discount store
of the United-States

Offers many kinds of items

in low price

No.1 in sales worldwide

05. Comparison With ‘ Wal-Mart ‘ Case

What is Wal-Mart?

warehouse-type
large discount store
of the United-States

Why is Costco successful in Korea

Offers many kinds of items
where Wal-Mart also failed?
in low price

No.1 in sales worldwide

05. Comparison With ‘ Wal-Mart ‘ Case

High Quality Low Quality

Small kinds Many kinds

of items of items
05. Comparison With ‘ Wal-Mart ‘ Case

High Quality Low Quality

How can Costco sell
high-quality goods at
low prices?
Small kinds Many kinds
of items of items
05. Comparison With ‘ Wal-Mart ‘ Case

Specialization in the Revenue/Cost Model

Product margin
Annual membership fee
Selling & Administrative
expenses
Purchasing Cost

COSTCO remains only 15% of product margin and covers up by annual membership fee
05. Comparison With ‘ Wal-Mart ‘ Case

Private brand products & Food court

High-quality goods at a low price

with their exclusive brand.

Incomparably cheap food

makes people come to the store