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Costco Wholesale's Winning Formula - Coggle Diagram
Costco Wholesale's Winning Formula
Competitive Advantage
compensates employees very well in terms of wages and benefits
earns US$530,000 of revenue per employee
low turnover rate - 6%
Suppliers
Has close bond with suppliers
P&G, Kraft, Whirpool
negotiates low prices with suppliers
Customers
Specific market looking for products in bulk at a low price
Competitors
Woolworths, Coles, Kmart, Target, Lowes, Walmart
Labour Market
Has many loyal and productive employees
Offers many employee benefits
Technological
Costco.com
Automated means of storing data (via technology)
Has a website/online platform
Natural
Environment friendly
Energy efficient
CSR
Sociocultural
Diverse, targets wide range of customers
Focuses on bulk needs of families in suburban communities,
Economic
Negatively affected by economic slowdown
affected by currency exchange rates
Competitive, value pricing
Legal/Political
Government approved Minimum Wage
International
Strong growth expected in Asian Markets
27% of foreign sales outside the USA