Costco (COST) SWOT Analysis

Costco (COST) SWOT Analysis

Strengths

Costco's Ability to Buy in Bulk Lowers Their Expense This is related to buying power in which the purchaser of goods can get a cheaper price from...
Global Market Leader Market leading position brings many benefits to those companies. Generally, they possess good brand...
Low Cost Product Should do better in an economic recession since goods are priced low. Low cost provide significant...
Simply and Efficient Interior Design Lowers Costs Warehouse stores like at Costco's have a low need for interior designs. This saves costs and...
Strong Use of Private Label Goods at Costcos When customers can buy the good they need at a reduced price, the retailer can keep some of those...
Value Leader Costco sell medium to high quality products at a fair price. Typically, their markup is a flat 7% of...

Weaknesses

Domestic Market Potential Domestic markets are saturated, which limits growth potential and profit ability. The next potential...
Mature Markets - Limited Product Expansion Mature markets result in slower growth of revenue and lower margins as companies begin to compete on...

Opportunities

Online Shopping Could Be a Costco Service Online shopping could add to Costco's services, because they buy in bulk and have a robust...
Private Labels Higher prices may cause consumers to migrate to private label products. This provides a low cost...

Threats

Costco (COST) SWOT Analysis Profile

Costco Wholesale Corporation operates self-service retail warehouses that require store memberships to shop their various branded and private label products. There are grocery items, clothing, fruit, electronics, health and beauty, furniture, optical, photo services, and more for consumers. Costcos membership programs offers Business, Gold Star, and Executive levels. Costos has locations around the world. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

SWOT Conclusion

Strengths + Opportunities = 16

Threats + Weaknesses = 7

… A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties.

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