Costco Strategic Management and SWOT Analysis Free Essay Example, 1000 words

The company also saves on packaging since customers buy in bulk which is already packaged from suppliers. In terms of marketing, the firm is located in key areas in the US and Canada. Costco currently sells a wide variety of products at competitive prices. The firm promotes its products through a number of media including the internet. The firm ranks above its main competitors BJ Wholesale and Sam s Club in the US where it has over 400 warehouses. In terms of finance the firm is not highly geared. It operations are profitable. Costco s returns on share prices declined between 2008 and 2009 in the midst of the Great Recession. However, it rebounded in 2010. The company s returns on share prices have been above the average of the S P500 Index as well as its Peer Group Index (Annual Report 2010). According to Mark Sussman (2008) Costco is ahead of the competition based on the mix of products that it offers. The firm also operates in other industry segments such as gasoline retailing. T he firm does not have much R D expenditure. We will write a custom essay sample on Costco Strategic Management and SWOT Analysis or any topic specifically for you Only $17.96 $11.86/page Opportunities exist for the company to expand in other countries as well as existing markets. The Government regulations threaten its expansion in existing markets (Annual Report 2010). Costco should use its strengths to capitalise on opportunities and to enable the firm to avoid threats in the macro-environment. The firm could also minimise weaknesses by capitalising on opportunities as well as use various strategies to minimise threats.